botje11

EURJPY Target almost reached, Profit taking time

FX:EURJPY   Euro / Japanese Yen
Almost a picture perfect trade again with this double bottom pattern. Target is almost reached now but as we can see there are several resistances now. I posted an update in my channels an hour ago, about taking at least some profits. This trade had no long term thoughts behind it so IMO' i would not focus too much on letting a big size run and simply take the profits.

I usually do 2 things here, that is i (almost) always let 30% run with a tight trail stop, something i will do here as well. Now since we made a bull flag above the neckline of the double bottom , there is potential for a breakout upwards. So in this case i would use an even tighter stop for the other 70% as well instead of simply closing them. Maybe risking like 10 pips for potential 50/150 pips more. You never know, but worth it IMO'.

And even if the yellow hits, i would keep trailing at least 50%


Previous analysis:
Trade closed: target reached: So it made a small shake out and bounced up quite big eventually. That last part when i posted this analysis, i did not see a move like this coming. But this shows again, how important it is for not mixing up strategies, like day trading and swing trading. We all want to see an asset we trade go in a straight line, where traders tend to get out when it drops too much and the profit goes away. Instead of sticking to the plan, with at least part of the position.

Reason why i used very tight stops in this trade, is because we already had 90% of the target in reach, was not willing to risk a lot more. Will try to show other examples in the future, that make more sense to keep holding if that is/was the plan upfront.