USDJPY sell trade explained, structure, reasons, SL and TP
Short trade of USDJPY detected after a formation of a bearish triangle, our automatic indicators draw the fibonacci levels and the trend lines.
We can see the green middle line of the trend line, that's a important zone that if its rejected together with the Moving Average it means big sell pressure.
We see in the setup how clearly a reject was made to the moving average indicator and also to the trend lines.
After we spot the reject we immediately start with next step to make a short trade execution. Before that we place our Sl and our Tp zones.
SL is going to be placed above the 0% fibonacci level and our TP is going to be placed at the 50% fibonacci level, the reason is that both zones act as a high resistance & support level so we place the sl above the resistance area and the TP at the support area.
The result is a nice scalp of 30 pips with no draw down, thanks to a good consistent trading strategy.
Thanks!
We can see the green middle line of the trend line, that's a important zone that if its rejected together with the Moving Average it means big sell pressure.
We see in the setup how clearly a reject was made to the moving average indicator and also to the trend lines.
After we spot the reject we immediately start with next step to make a short trade execution. Before that we place our Sl and our Tp zones.
SL is going to be placed above the 0% fibonacci level and our TP is going to be placed at the 50% fibonacci level, the reason is that both zones act as a high resistance & support level so we place the sl above the resistance area and the TP at the support area.
The result is a nice scalp of 30 pips with no draw down, thanks to a good consistent trading strategy.
Thanks!