I am bullish biased for USDJPY in the long run, but I'm going to take a short scalp-ish position at 110.8. I'm basing this decision on the length of some of these recent wicks on the 4H chart, generated by the failure of the price to close above a strong resistance line and ascending trendline. The only thing, in my opinion, that's preventing the price from hitting my target is the Ichimoku conversion line (and, of course, unexpected fundamental news). My stop loss is above the previous high. I call this a scalp, not in that I'm trying to take off only a few pips, but the timeframe of this position is going to be limited. If the price stays above the resistance and trendlines for any significant amount of time, then I'm going to cut this position off before the stop loss. I'm looking for this trade to resolve within 24-hours. Take profit is at around where I expect the 30EMA over the next day or so.
Thanks for looking, -Zedro
Trade active
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Trade closed: stop reached
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Stop loss hit. The trendline and resistance line weren't nearly as strong as I thought. Also, the stop loss point is exactly at an area that MM would target. Bad positioning and a bad trade. Better luck next time.
In what way? If you mean my math, then how is that wrong? If you mean, risk to reward ratio is no good, then that's a good point, but everybody has their own way of deciding how much to risk per trade.