Extreme trader sentiment points to possible GBPJPY downtrend
The Trend Follower Strategy has just sold GBPJPY at 151.873. The system recommends entering this trade at any price between 151.628 and 152.118. The signal was issued because our Speculative Sentiment Index is extremely negative, with a value of 1.552. This suggests that the GBPJPY could be trending downwards.The 14-period on a is 0.979, so the stop loss has been set at 152.852. This stop loss order is a trailing stop that will move down as the market moves down. There is no profit target for this strategy. We expect to be closed by the stop loss.Trend Follower is a trend trading strategy that aims to buy and hold rising currency pairs and to sell short and hold falling currency pairs. The strategy looks to buy when the Speculative Sentiment Index is below -1.5, and looks to short when it is above +1.5.
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