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Did you see the reversal on USDJPY last week? After waiting weeks for price to retrace, USDJPY reversed passing the weekly higher lows at 140.343. You may be wondering what happens next.
The only thing you can from here is pinpoint where you'll enter the next trade and where you'll take profit.
Doing these two things are called strategy. You're fighting for the best price to enter and using your analysis to assume where price will move to after you enter the trade.
My dear trading friend I'm here to tell you that if you use the same steps over and over again, this won't be a hard step.
What I'm looking for?
First, I'm looking for a pullback in price or a rise in price. A rise in price gives me a better risk to reward of 1.87.
So, if price can pullback to 146.151, I believe this will be my best entry price. My stops will go around the high of 151.958 giving price room to breath in case it moves in the range between my entry and stop loss price.
Where do I believe price can go next?
I believe price can move back down to 135.425. USDJPY is still in a bullish trend according to the weekly timeframe.
This is a potential $1.00 or 1000 pip decline.
What type of trade is this?
I believe this is a weekly retracement, daily reversal trend trade. It's a bit higher risk because it fits into a counter trend category if I were to follow the cycle trend of it going against the weekly bullish uptrend.
Risk Management
I'll be risking 0.5% of my account due to this being a countertrend trade. This will also be a swing trade so I'm prepared to hold this trade for a few weeks, maybe even a month or so. Time on this trade will be out of my control.
What will stop me from entering this trade?
If price continues down, I will not enter. I need a pullback to enter the trade and without a pullback, I have no trade.
My entry is a bit away so I will set a Sell limit. A sell limit is when you put an automated order at your entry price to sell. Your broker will trigger you into the sell automatically once price is pushed through and price begins to fall past your entry price. I could also set a sell stop, but the sell limit provides a better confirmation for me.
So, my trading friend, do you believe price can pullback and drop? What do your eyes see?
I also thank you for taking your time out to read my thoughts on USDJPY.😍
Did you see the reversal on USDJPY last week? After waiting weeks for price to retrace, USDJPY reversed passing the weekly higher lows at 140.343. You may be wondering what happens next.
The only thing you can from here is pinpoint where you'll enter the next trade and where you'll take profit.
Doing these two things are called strategy. You're fighting for the best price to enter and using your analysis to assume where price will move to after you enter the trade.
My dear trading friend I'm here to tell you that if you use the same steps over and over again, this won't be a hard step.
What I'm looking for?
First, I'm looking for a pullback in price or a rise in price. A rise in price gives me a better risk to reward of 1.87.
So, if price can pullback to 146.151, I believe this will be my best entry price. My stops will go around the high of 151.958 giving price room to breath in case it moves in the range between my entry and stop loss price.
Where do I believe price can go next?
I believe price can move back down to 135.425. USDJPY is still in a bullish trend according to the weekly timeframe.
This is a potential $1.00 or 1000 pip decline.
What type of trade is this?
I believe this is a weekly retracement, daily reversal trend trade. It's a bit higher risk because it fits into a counter trend category if I were to follow the cycle trend of it going against the weekly bullish uptrend.
Risk Management
I'll be risking 0.5% of my account due to this being a countertrend trade. This will also be a swing trade so I'm prepared to hold this trade for a few weeks, maybe even a month or so. Time on this trade will be out of my control.
What will stop me from entering this trade?
If price continues down, I will not enter. I need a pullback to enter the trade and without a pullback, I have no trade.
My entry is a bit away so I will set a Sell limit. A sell limit is when you put an automated order at your entry price to sell. Your broker will trigger you into the sell automatically once price is pushed through and price begins to fall past your entry price. I could also set a sell stop, but the sell limit provides a better confirmation for me.
So, my trading friend, do you believe price can pullback and drop? What do your eyes see?
I also thank you for taking your time out to read my thoughts on USDJPY.😍
