EUR/JPY divergence short, Sherem's trade tracking #3

Divergence on the 4hour. MACD crossed, in a resistance area. This either works quick or it doesn't.

Entry: 129.70
Entry size: 1 lot
SL: 130.11

Targetting 127.20 area.

I will be moving my SL to break even fairly quickly if we get a nice move down from here.

account balance: $11,123 with the 2 other trades in progress.

Happy Trading,

-Sherem

Trade closed: stop reached:

:(

Comment:

In doing these trades on my live account, I want to document a little more of why I took the trade. While I do look at a lot of different indicators, The primary reasons I took this trade were:
a resistance point,
trendline
showing signs of RSI divergence.
We also had a hammer candle form and some doji's on the smaller time frames, with a retest of the highs on the 4 hour. Which if you go back, you can see this is usually a great reversal set up.

Going into this I knew the EUR had a lot of strength. What I also looked at but didn't post was the fact that eur/gbp was also at the top of it's channel. I look to eur/gbp as they are cross that can indicate strength or a pull back. This lead me to believe that we would have an accelerated pull back in both the jpy and eur for a great move to the downside. However, eur/gbp has broken out of it's upward channel, so for now it remains bullish while great Britain figures out what they are doing.

While we could try and short it again as it might hit one of this other trendlines, we might be eating crow again for a second time if it continues to push up. We'll look for other trades that offers a R:R similar to our last GBP/jpy and AUD/USD trades, that went really well.

Comment:

I am posting this to document my trades, but not making it a new idea. I am doing this on GBP/JPY for a quick scalp. Very high risk. Session scalping based on mainly exhaustion and some divergences. But it looks good for a pull back.
Going for a move from 145- 144ish. 1 standard lot

Comment:

We're up 50 pips on this GBP/JPY entry. It was painful but it finally went our way. SL moved to just above 144.75 to lock in profits. Still targetting 144 area for now.

Comment:

stopped out of this GBP/JPY trade with profit. About what we lost on the eur/jpy so all in all it was a wash