Welcome back for some more chart analysis practice. I found another trend continuation pattern opportunity here on USDJPY. So, this is another one of those situations where I found this potential trade set-up last week and decided to add an alert to keep an eye on its development. Here as you can see the market broke above previous highs and is now retracing back into a 0.618 Fib retracement level, which gave me my entry @ 108.095. Since my entry got hit, I put my stop loss 10 pips below the lowest low @ 107.440, and my target @ 108.991. Now if you zoom out a bit farther on the chart, you can see that this looks a lot like a complex pull back. So it is very probable that the market could fall and continue the overarching bearish trend there by stopping me out. However, there is also a possibility that the market could continue what appears to me to be a reversal, and rally higher to hit my target. We'll just have to wait and see.
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. I am not taking this trade in real life, and I have not back-tested this particular strategy on this currency pair, 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.
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. I am not taking this trade in real life, and I have not back-tested this particular strategy on this currency pair, 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.
Trade closed: stop reached:
Hey guys, I just wanted to give ya'll an update on this analysis I did earlier in the week. So, as of right now, it really is starting to look like the market put in a complex pullback, as opposed to the trend reversal I thought the market was about to do. Either way, the market clearly stopped my out and is now looking like it's going to continue the bearish trend. Hope you guys enjoyed this, and don't forget to check out my YouTube channel @ Matthew Spositi for more in-depth market analysis. Have a great day, and I'll see you in the next one.