Hey guys,
i've decided to use two different charts so that you can understand my process of reasoning. On the left hand side of your screen there's the daily chart on EURJPY and the uptrend is crystal-clear. However, we know that price usually doesn't move straight up or down, instead it creates retracements along the way. So this is obviously a counter trend trade.
Nevertheless it fits into my trading plan and therefore i'm sharing it with you.
After outlining the reversal zone on the daily chart, on the lower timeframes such as 4h we can start looking for shorting opportunities with confirmation.
As of now we won't short because the uptrend is still strong, but as soon as price gives us a reason for entry we will be interested in selling this, also given the fact that the RSI is overbought in both the charts.
Anyway, i'm not leaving trades open during this weekend (at least in EUR pairs), French elections could easily form gaps way beyond our stop losses level, and remeber that if price open above your stop loss you're going to be executed at the opening price. This way you can lose more than what you're allowed to risk.
Pay very attention guys, don't gamble.
If you want to ask questions, feel free to comment below.
Otherwise, see you in the next chart!
i've decided to use two different charts so that you can understand my process of reasoning. On the left hand side of your screen there's the daily chart on EURJPY and the uptrend is crystal-clear. However, we know that price usually doesn't move straight up or down, instead it creates retracements along the way. So this is obviously a counter trend trade.
Nevertheless it fits into my trading plan and therefore i'm sharing it with you.
After outlining the reversal zone on the daily chart, on the lower timeframes such as 4h we can start looking for shorting opportunities with confirmation.
As of now we won't short because the uptrend is still strong, but as soon as price gives us a reason for entry we will be interested in selling this, also given the fact that the RSI is overbought in both the charts.
Anyway, i'm not leaving trades open during this weekend (at least in EUR pairs), French elections could easily form gaps way beyond our stop losses level, and remeber that if price open above your stop loss you're going to be executed at the opening price. This way you can lose more than what you're allowed to risk.
Pay very attention guys, don't gamble.
If you want to ask questions, feel free to comment below.
Otherwise, see you in the next chart!
Comment:
This would have been a nice reversal candle and therefore an entry reason, but i'm not takiing this one since we have NFP today and this weekend is going to be highly risky:
