QuileHills
Long

USDJPY Divergence Near Channel Bottom

FX:USDJPY   U.S. Dollar/Japanese Yen
488 4 24
USDJPY             has formed bullish divergence on the daily RSI as indicated by the yellow lines on my chart.

It's near the bottom of its wide bearish channel and near Brexit lows.

I'm looking for the pair to break the interchannel trend resistance (black line) to indicate the start of a bullish move.

I've used a combination of price action and the 11 period daily ATR to calculate a safe SL and have achieved a final R:R of 3.26 for this pending buy stop order and am sizing my order appropriately in order to take a risk just below 2% of my account should the pair proceed to my SL after entry.
ChimbOt PRO
3 months ago
snapshot
Yes!
Reply
MikePips
3 months ago
I like this markup. The Tp is a little far out for me though.
Reply
purpurato59 PRO
3 months ago
Interesting thanks. I do not understand what you meant with the ATR to calculate your SL, can you further explain ?
Reply
QuileHills purpurato59
3 months ago
The ATR as I use it is an average of the high/low range for the past 11 days smoothed via SMA. I look to approximately double it's current daily value in order to ride out "bumps" along the way during the trade. If the pair goes against me by 2x the daily ATR, my analysis is incorrect.
+1 Reply
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