Trading USD/JPY? Easy: Breakout, pullback to new support indicated by wicks. Wait for new breakout. Repeat.
If we traded long Japanese Yen each time there was a breakout during this week at the hourly chart, not a single stop loss would be hit most probably.
Yet, remember to disregard any breakout candlestick that doesn't have a long body. None of those can be spotted though in the 10-day chart of USD/JPY.
Not a momentum trader, taking advantage of the breakout?
That's fine. Wait for the pullback after the breakout and try pinpointing the level that the currency pair will likely find support, by combining long wicks with previous resistance levels.
Obviously the attached chart is a flawless example of that strategy. No strategy will produce 100% results, so always set a well-thought stop loss before even thinking of entering the market!
Cut losses short, let winners run!
If we traded long Japanese Yen each time there was a breakout during this week at the hourly chart, not a single stop loss would be hit most probably.
Yet, remember to disregard any breakout candlestick that doesn't have a long body. None of those can be spotted though in the 10-day chart of USD/JPY.
Not a momentum trader, taking advantage of the breakout?
That's fine. Wait for the pullback after the breakout and try pinpointing the level that the currency pair will likely find support, by combining long wicks with previous resistance levels.
Obviously the attached chart is a flawless example of that strategy. No strategy will produce 100% results, so always set a well-thought stop loss before even thinking of entering the market!
Cut losses short, let winners run!