Good day today, with two nice trades taken in the room, both of which went quite well. More important than the profits is the method of the trade: * How you analyzed the trade * How you entered * Where you exited * How you determined your trading plan All are very important to a trader's success. The GBP/JPY, which we call the "Formula-1 Race Car" of the currencies, had a Bullish Divergence spotted on the 30 min timeframe. The price was making a low and a lower low. The stochastics was making a low and a higher low. This is what we call an "aggressive" divergence - Class A. This means the first low was beneath the oversold level on the stochastics, but on the second low, it did not have the momentum to come below this level again. It suggests that the price has come down with a reducing momentum, which signifies a change of trend. Our aggressive entry is based on the "neckline" of the divergence. As soon as the price breaks the neckline, we enter the trade and start taking profits at selected target levels. This was an excellent trade, which we closed off after observing resistance at a fan level. The market may have gone further, but we are not interested - we took a trade at pre-defined targets, took our profits, and got out of the trade. No need for greed. Your target objectives have been achieved, so get out and look for another trade. On the USD/JPY there was a similar Bullish Divergence, but observed on the 1h timeframe. We had a similar situation where your stochastics on the second lower low did not have the momentum to come below the oversold level. We used another aggressive entry on the neckline of the divergence. I would like to make one point about these two trades, which is important and quite relevant, and which our members have asked us about before. When you observe a setup on one particular timeframe, you should stick to that timeframe for your trading. You can shift down to a lower timeframe to correct your entries or to analyze the trade in detail, but the parameters you follow for the trade should be based on the original timeframe. These two trades are a good example of why this is important. The divergence neckline cannot be plotted on any other timeframe - if we plan our trade on 1h, we plot our neckline on 1h, and we enter on the 1h timeframe. On the GBP/USD we had another similar situation, though this Bullish Divergence was a little shallow. We did not take this trade, but for the sake of understanding, we are analyzing it. We plotted our projections for the target, and the fans held the price quite accurately. Trading such setups is a question of identifying the setup, and applying the correct tools. If you do this, half of your work is done. There is no reason why your equity should not grow when you observe trades like this and react appropriately. Enjoy the video!