Note: Welcome back for some more chart analysis practice. As you know, I am not taking this trade in real life, and I have not back-tested this particular strategy on the EURJPY , so I really don't know how this type of trading strategy will work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Hey guys, I found another trend continuation pattern opportunity here for some analysis practice on EURJPY. So, I highlighted this opportunity yesterday but didn't post anything about it because it wasn't close enough to the 0.618 Fib level to mention it yet. But as you can see, after the market closed above the previous highs of 121.932, it continued higher and closed higher @ 122.293, there by making a new higher high. This leads me to believe that there is a good chance the market will continue to trend higher. Now that the market has retraced back into previous structure, which was resistance and has now turned into support, and has retraced back into the 0.618 Fib retracement level, I will look to hypothetically enter the market @ 121.825. I will also place my stop loss 10 pips below the previous higher low @ 121.416, and my target @ 122.321. So far, the market appears to be rallying and is looking like it will retest the highs there by hitting my target for a win. But who knows, the market could easily reverse to stop me out, so we will just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Hey guys, I found another trend continuation pattern opportunity here for some analysis practice on EURJPY. So, I highlighted this opportunity yesterday but didn't post anything about it because it wasn't close enough to the 0.618 Fib level to mention it yet. But as you can see, after the market closed above the previous highs of 121.932, it continued higher and closed higher @ 122.293, there by making a new higher high. This leads me to believe that there is a good chance the market will continue to trend higher. Now that the market has retraced back into previous structure, which was resistance and has now turned into support, and has retraced back into the 0.618 Fib retracement level, I will look to hypothetically enter the market @ 121.825. I will also place my stop loss 10 pips below the previous higher low @ 121.416, and my target @ 122.321. So far, the market appears to be rallying and is looking like it will retest the highs there by hitting my target for a win. But who knows, the market could easily reverse to stop me out, so we will just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: stop reached:
So, unfortunately in this trade, we got caught in was is called a complex pull back. Where the market essentially puts in a two drives (may have more than two drives) retracement. Trading these can be tricky, because it can look like the market is going to reverse which can cause you to do what I did and essentially attempt to take a trade that is moving in the opposite direction of the overarching trend. So when you are creating your trading plan, make sure you consider how to handle these situations in your trading strategy. Hope you guys enjoyed this one, and have a great day!