PriceActionTrading
Short

EURJPY BEARISH ENGULFING CONFIRMATION

FX:EURJPY   Euro Fx/Japanese Yen
220 16 15
SIMPLE PIN BAR SPOTTED AT HEAVY RESISTANCE AREA, ALSO 78.6%.
FOLLOWED BY BEARISH ENGULFING CONFIRMATION.
SELL ON STRENGTH NEAR THE H1 50SMA 20SMA ZONE.

78.6%
STRUCTURE RESISTANCE 135.00 KEY LEVEL
BEARISH ENGULFING PATTERN
H4 RSI DIVERGENCE


H1
snapshot
moneymaking
2 years ago
Hey price action, really nice trade setup. It seems reasonable to short here since we expect the retest of the previous structure level of 131.00. Will you be waiting for bearish price action or just placing a pending order?
+1 Reply
PriceActionTrading moneymaking
2 years ago
Look for pin bars at H1 50SMA as entry. When trading H1 have to be more careful and know which pin bars are tradable. I do get it wrong a lot of times too.
Usually traders enter into bearish engulfing at the 50% mark. But given how H1 50SMA propels price, it seems a better entry point.
+1 Reply
moneymaking PriceActionTrading
2 years ago
Sounds good. Good luck :)
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PriceActionTrading moneymaking
2 years ago
Yes you too. Im still in on my EURUSD so i may not get into this. See how it goes or how compelling the price action is before taking on this risk/more risk.
+1 Reply
moneymaking PriceActionTrading
2 years ago
Ya, better to stay within your risk limit.
Reply
moneymaking
2 years ago
Do you also keep your max risk of 2% on per trade ?
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PriceActionTrading moneymaking
2 years ago
Yes 2% per trade and never more than 1 trade at any moment UNLESS they are less correlated AND already SL at BE. How do you know that? lol.
+2 Reply
moneymaking PriceActionTrading
2 years ago
Well 2% is like the basic rule. I watched so many youtube videos and heard many people say that "never risk more than 2% per trade" and I thought you might also be following this rule. I didn't understand one thing. What do you mean by never more than 1 trade at any moment? Is it like lets say you have 2 positions open on EURUSD and you see another opportunity in GBPUSD for example. Do you mean that you will trade the GBPUSD setup ONLY when when you are done with EURUSD open positions?
+1 Reply
PriceActionTrading moneymaking
2 years ago
the are both related.
If i already have one open i will not trade the other.
or i may close half of my eurusd and take on half of gbpusd to diversify(but note there are no real diversification in forex as all are correlated somehow).
or if my current open position is profitable enough and breached a key level of interest i will put it to breakeven and enter another at another 2%, effectively still risking 2% while making 8%
+1 Reply
PriceActionTrading PriceActionTrading
2 years ago
they*.
GBPUSD AND EURUSD
+1 Reply
moneymaking PriceActionTrading
2 years ago
That's a good way to manage your positions, I never knew that. Well done :)
Reply
PriceActionTrading moneymaking
2 years ago
Yea just dont do it on you actual account just yet. Familiarise it on some demo account first.
Note that when i say close half of eur to buy half of gbp, if eur goes wrong so will your gbp (correlation reason). But you are and should only be risking 2% or even lesser as when you close the half eur you should have some profit in already and hopefully move your stop to a better location if it permits.
+1 Reply
moneymaking PriceActionTrading
2 years ago
Ya, definitely. Testing every method on demo account has become my habit. I give the method/strategy a good amount of time to show it's true value before even thinking about applying it to real account.
+1 Reply
PriceActionTrading moneymaking
2 years ago
So i have put my EURUSD trade to BE. I am looking for new trades now with really good price action. But probably not EURJPY as is still EUR based.
+1 Reply
moneymaking PriceActionTrading
2 years ago
Nice work :)
Reply
Just a follow up.
EURJPY has rised quite significantly, we could enter buy or sell but my bias is on sell.
Sell follow up idea is as follow.

snapshot
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