We may see the Congruence on Daily, H4 and Hourly Stochastic soon.

Here is the Daily chart.

The price has just bounced from the support zone (and Fibonacci 50%).  The Stochastic has crossed and about to go above 25%.  (But not yet)

2015-12-02_17-18-40-GJ1

On H4 chart, Stochastic is still in the down cycle.   But the price seems to have bounced already from Fib61.8%.  So it is fair to assume the stochastic will turn into up cycle soon?   (especially in a few hours…)

2015-12-02_17-20-10-GJ2

Here is the Hourly chart.

Stochastic is reaching to the top!!   Yes, that’s good!   Why?  🙂

We can wait until the down cycle is over, and hopefully the price will drop down to our buy zone (Fib38.2-61.8%).

But we have to wait for another 4-6 hours until the end of down cycle.

2015-12-02_17-21-50-GJ3

 

So here is the best Scenario.

 

In 4-6 hours from now…

a) The price may come down to Fib38.2-61.8% (185.20-185.35) zone on Hourly chart, while Stochastic will turn into Up Cycle.

b) H4 Stochastic will be in an Up Cycle

c) Daily Stochastic will go above 25% facing North!

 

 

 

But the most important thing is …  185.20-185.35 are in the Support zone on Daily chart!   … and the 2nd important thing is Daily, H4, H1 Stochastic will be all in the UP CYCLE.

 

The target?  That’s your alpha.

 

If you are trading on Daily chart, Fib 138.2% is 191.80.

If you are trading on H4 chart, Fib 138.2% is 186.64.

If you are trading on H1 chart, Fib 138.2% is 185.80.

Of course, if you want to shoot for Fib168.2%, instead of 138.2%…  that’s your alpha too.

 

Typically things don’t work as expected.  But at least, I want to dream of the perfect scenario!

 

Hope this setup gives you some dreams!   🙂

 

 

YJ Baik – Forex.Today @ Tokyo

 

 

PS: The price is already in the buy zone now (185.29 – 5AM EST).  But still Hourly Stochastic is down.  I would still buy this pair from Double bottom on Hourly chart at 185.00 when Stochastic up cycle begins.

7 thoughts on “GBPJPY – Possible Congruence on Multi-Timeframe Stochastics!”

  1. Artem says:

    Thank you YJ

    1. YJ Baik - Forex.Today says:

      Hi Artem,

      I just notice you always give me the reply.

      I appreciate it. Thank you!!

  2. Artem says:

    I really love every your analysis and all the work you do to show traders how to trade properly. It is the least i can do to thank you))

    1. YJ Baik - Forex.Today says:

      Thank you, Artem. Though my setup didn’t work out. But I am also learning so much from all the comments. Perhaps you can share your thoughts too. Thank you, again, Artem.

  3. Chris Wittusen says:

    YJ:
    Thank you, I just checked the chart and it broke through 38, 61 and hit 100% on 1h fib. When I look at D1 I see a pinbar on previous candle which to me indicate a strong action down. What is your opinion about that?

    /Chris

  4. Chris Wittusen says:

    YJ
    There isn’t really a pinbar on D1, I just checked again, one broker had it as a pinbar (but 3 others doesn’t). However, looking at it, it does look like it could drop down to 184.37 before it turns back up again.

    1. YJ Baik - Forex.Today says:

      Hi Chris, thanks for your comment.
      Yes, I see pinbar on Daily chart. Though I am not a candle stick guy, but I agree with you.
      But I kind of like the current level of 184.00, and hoping to long soon…

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