I am presenting you my plan for the EUR/JPY currency pair. Quick overview of the conditions:
The pair was moving for quite some time between two areas – . The price was locked inside around 122.80 as a bottom and 125.70 as a top. For the past few days we can see on the H4 chart that the price formed a square formation exactly at the from which it previously bounced 3 times. The square formation is confirmed by the tight squeeze of the , which are now expanding and we can see that this square has been broken by a strong candle. Not only the square has been broken, but also the price is leaving the and getting below it. My projections for the currency pair is to go down and my focus will be on selling. I took the opportunity to divide a potential move down into two Sell Zones until a next level of possible strong support. I also added a Buy zone above the square formation, which is highly unlikely to be fulfilled, but it is a back-up scenario. Below you can find the Sell zones and Buy zone and if the plan starts to fulfill I will be looking for spots to Sell the pair on the lower time frames – M30 or M15. I will also be posting Live Signals on the Twitter page, so if you are interested you can follow us there.
Sell zone 1: 122.60 to 120.70
Sell zone 2: 120.50 to 118.40
Between the two zones at around 120.60 we have a previous bottom formed from a correction, which might cause the pair to make a correction or to consolidate for a while above it, so keep that level in mind.
Buy zone: 123.70 to 125.30
Highly unlikely scenario, but I prefer to be prepared for that also.
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*If you want an Example of what we do you can get it from our official page: http://dmtrading.bg/en.php
I wish everyone good luck and profitable trading!
This part of the trade made us 45 pips of profit.
Sorry for my mistake on the previous close the profit there was +9 pips due to closing only 50%.
Total of this plan: 54 pips