Go Short When the Market is Trending Down

For 4 (may be 5) days in a row, we saw the GBP/JPY market being sold-off overnight and continued to reach a new day low in the European Session.


I was able to picked up my short alerts on the yen-crosses markets on late Wednesday night. I started following the GBP/JPY market with great interest. That time was just before the happening of the downward leg labelled as 3 in the above chart.

I received further confirmation yesterday (late Thursday night) via the following trend check analysis:
Day Trading Japanese Yen Market Sentiment - 80% Bullish (i.e. Short all yen-crosses markets)
Smart Scan GBP/JPY Trend Score: - 65 (Downtrend)

Hence, I made the decision to go short and I was able to catch the similar downward movement (labelled as 4 on the chart) overnight. I banked myself 100 pips on this GBP/JPY. Plus another 100 pips on the AUD/JPY too :)

I was well-prepared this time.