GBPJPY Swing Trade Analysis

GPBJPY H4 Chart above shows prices on a downtrend as indicated beautifully by the 3 parallel EMAs. 

Swing trading. How? Prices on downtread and then retraced. A short trade was opened at the red candle at a level indicated by the purple bar. After several hours - 2 candle bars, prices showed little movement and momentum as indicated by the 2 spinning top candles. No sure where prices will move given the uncertainty. Hence closed the trade at almost break-even. Do not throw good money down the drain.

Remember trading is a game of probabilities. We can only try to increase the chances of winning by putting in a high probability setup trade but once you put in a trade, you can never know where prices would move. 

Preserving capital is as important as if not more important than not losing.

And one day later, see how prices in the chart below, they have reversed and gone uptrend ! Made the right decision to close trade.

Happy trading!!