USDJPY and the Art of Moving Averages + DCA
Hey Traders,
If you are looking at the fall across the board and looking to get long, then you'd better arrange for ideal prices. as the BOJ leaves comments regarding their approach to inflation and news circles around bond liquidation, we have seen a large dump from highs. We had already looked short, as I mentioned for an impending sentiment change.
I like to use Moving averages for a price gauge over time to stop the idea of being right every single time immediately on every single entry. This process comes after rash harsh moves from extremes like we have seen and when you have a really far stretching 'falling knife' kind of movement taking new entries can be scary.
The point of moving averages mainly is to show you where price is at an average over time. You can use this to understand what is value and what is not. Moving Averages literally are used everywhere and are the perfect way to gauge anything over time.
Introducing key price action rules within helps a lot. The basis for rejection, or any turn around in price usually coincides with areas that are contentious or orders have been pulled in or out, that is what causes the change ultimately.
Buy an average, not on price point. You will find your accuracy goes up a lot. Dollar Cost Averaging (buying over time at different prices) allows you to essentially gain an average area and not rely on one price point only.
It's also wise to do this in smaller incremements. It must be understood that one entry with one size is always going to put the chances of failure up. You are essentially have more rolls of the dice at a lower risk so you can spread out the chance of your trade failing. That's why I do not use stops either, you are simply placing yourself into one ultimatum of outcome.
In terms of further price action, I would not be surprised if all Yens rebound somewhat and I am long biased on a TECH basis within the fundamental downpour. Just check over the last fall, it is far from what would be considered a straight line and often if you are going to experience a sustained new forming downtrend for long periods of time there will always be bumps along the way as you go through various areas of key support on a fall or key resistance on a rally.
Plan entries in multiples, as described and do it with small sizes. Drop your natural risk at all times and stay alive. Spread your DCA entries out as the market falls and do not bunch them together. Do not place all eggs in one basket and feel free to trade various Yen pairs. Although they may follow a similar overall trajectory, often, they will differ slightly in price action as they are reflected against different currencies naturally to make a pair.
I hope that helps.
If you are looking at the fall across the board and looking to get long, then you'd better arrange for ideal prices. as the BOJ leaves comments regarding their approach to inflation and news circles around bond liquidation, we have seen a large dump from highs. We had already looked short, as I mentioned for an impending sentiment change.
I like to use Moving averages for a price gauge over time to stop the idea of being right every single time immediately on every single entry. This process comes after rash harsh moves from extremes like we have seen and when you have a really far stretching 'falling knife' kind of movement taking new entries can be scary.
The point of moving averages mainly is to show you where price is at an average over time. You can use this to understand what is value and what is not. Moving Averages literally are used everywhere and are the perfect way to gauge anything over time.
Introducing key price action rules within helps a lot. The basis for rejection, or any turn around in price usually coincides with areas that are contentious or orders have been pulled in or out, that is what causes the change ultimately.
Buy an average, not on price point. You will find your accuracy goes up a lot. Dollar Cost Averaging (buying over time at different prices) allows you to essentially gain an average area and not rely on one price point only.
It's also wise to do this in smaller incremements. It must be understood that one entry with one size is always going to put the chances of failure up. You are essentially have more rolls of the dice at a lower risk so you can spread out the chance of your trade failing. That's why I do not use stops either, you are simply placing yourself into one ultimatum of outcome.
In terms of further price action, I would not be surprised if all Yens rebound somewhat and I am long biased on a TECH basis within the fundamental downpour. Just check over the last fall, it is far from what would be considered a straight line and often if you are going to experience a sustained new forming downtrend for long periods of time there will always be bumps along the way as you go through various areas of key support on a fall or key resistance on a rally.
Plan entries in multiples, as described and do it with small sizes. Drop your natural risk at all times and stay alive. Spread your DCA entries out as the market falls and do not bunch them together. Do not place all eggs in one basket and feel free to trade various Yen pairs. Although they may follow a similar overall trajectory, often, they will differ slightly in price action as they are reflected against different currencies naturally to make a pair.
I hope that helps.
Comment:
Looking long.
Comment:
Re buy dips.
Comment:
Spacing further entries lower.
Comment:
DCA longs entered further.
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Exit for gains.
Comment:
Exit longs, minor light shorts on weakness coupled with early resistance.
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Continuing short bias.
Comment:
Lock in gains.
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Free Discord Secret Server:
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Daily Mentoring On Zoom:
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Posts Not financial advice.