From TradingView · · 1m 10s
GBPJPY long setup after breakout retest
A GBPJPY trader spots a breakout, waits for support, then plans a long with a clear risk flip.
In brief
A GBPJPY trader spots a breakout, waits for support, then plans a long with a clear risk flip. The trade idea depends on former resistance holding as support after a breakout and retest. Originally reported by TradingView.
The bias turns long
The trader is looking to go long on GBPJPY after studying the 4 hour chart and spotting price at a resistance level.
“I am going long on GBPYJPY.”
Breakout comes first
Price moved through the resistance level. That breakout set up the next step, waiting for a retest instead of chasing the move.
“I saw that it broke out of that level”
Old resistance becomes support
On the 1 hour chart, price is pulling back to the same zone. The idea is that previous resistance is now acting like support.
“previous resistance which is now acting like support”
Pin bar adds confirmation
A bullish pin bar on the 1 hour chart supports the long idea. The trade targets prior levels rather than a vague upside move.
“seeing a bullish pin bar on the 1 hour”
Risk stays defined
The trader likes the risk to reward, but has a backup plan. If price breaks down, the bias flips from long to short.
“if price goes south I will then change my bias to go short”
The takeaway
The trade idea depends on former resistance holding as support after a breakout and retest.
