GBP/JPY Simple And Profitable Forex System

GBP/JPY pair is considered to be very volatile. Due to this high volatility, GBP/JPY pair is also know as the Beast or the Dragon. You can consider GBP/JPY as one of the most volatile currency pair. Average daily range of this pair is something like 150 pips. Some days this pair can move more than 200 pips. So the pip potential is obviously there. This volatility means a lot of pips if only you know how to capitalize on it. The important question is how to capitalize on it. Obviously you can capitalize on this pip potential using a system that uses tight stop losses and good money management rules. You might like to test this Simple and Profitable Forex System that has been optimized for this GBP/JPY pair on the demo account. Somebody was saying they made more than 1500 pips in a week with this system.

Simple And Profitable GBP/JPY Breakout Trading Strategy

So it can be a good idea to test this Simple and Profitable Forex System on the GBP/JPY pair on the demo account first. This system uses candlestick reversal patterns, Stochastic and the RSI oscillators on the 1 hour timeframe to make the entry and the exit decisions. The Stochastic settings are 5,3,3 which are pretty fast. These Stochastic settings have been chosen to track the GBP/JPY pair on the 1 hour chart as this pair also moves pretty quickly. The RSI setting for this system is also 7. So what we will be doing is to look for breakouts using these three indicators. If you can catch a few good breakouts using a tight stop loss, you can make hundreds of pips every week with this pair.

When a candlestick bullish or bearish reversal pattern appears especially when you spot a shooting star, morning star, hammer, hanging man, three inside up, three outside up, bullish engulfing pattern, a bearish engulfing pattern or whatever, you will check that with the Stochastic and the RSI. If the Stochastic is below 20 and the RSI is below 30 while you have a bullish reversal candlestick pattern, you can have a long signal.

In the same manner, if the Stochastic is above 80 and the RSI is above 70 while there is a bearish reversal candlestick pattern, you can think of going short. It is always a good idea to use a candlestick patterns recognizer indicator as it will help you a lot. You won’t need to monitor the charts. The candlestick patterns recognizer indicator will alert you when a candlestick pattern is formed. You just need to check that with the Stochastic and the RSI to decide whether this is a valid signal or not. As we pointed out in the beginning, GBP/JPY is a highly volatile pair so it will always be a good practice to use tight stop losses. This will help in reducing the risk. By reducing the risk you won’t need to win always. Even with a win rate of above 60-70%, you will be able to make a net profit.

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