$100k Challenge - USDJPY Short - E44 T1
Hey all!
We have a new trade for the challenge!
Let's start with analyzing a bird's eye view of the daily time frame. We can observe that the market was in a stable, bullish structure for almost all of 2023 until a few weeks ago, when the market started to experience strong bearish pressure.
This eventually broke the ascending channel and the previous relevant area that failed to act as support. Then, the market tested that area a few times, validating it as a resistance and presenting a short trade opportunity.
I am targeting the 138.00 area, which is the nearest support zone, coinciding with a round number area, which tends to act as a relevant psychological area. The stop loss is slightly above the last high on the most recent test in the resistance area.
The fact that the market presents strong bearish signs allows me to set the stop loss close to the last high, allowing for a 2:1 risk reward toward the initial target. Also, since the market has already started to progress downward, the stop loss is far enough from the current price to allow breathing room.
Regarding the second target, if the market breaks the 138.00 support, there is a strong profit potential. It might take months for this scenario to develop. However, the potential profit justifies the time the trade can take to develop fully.
That sums up today's update for the challenge. I hope you enjoyed it!:D
Remember to follow me so you can keep up with the challenge!
Until the next trade!
We have a new trade for the challenge!
Let's start with analyzing a bird's eye view of the daily time frame. We can observe that the market was in a stable, bullish structure for almost all of 2023 until a few weeks ago, when the market started to experience strong bearish pressure.
This eventually broke the ascending channel and the previous relevant area that failed to act as support. Then, the market tested that area a few times, validating it as a resistance and presenting a short trade opportunity.
I am targeting the 138.00 area, which is the nearest support zone, coinciding with a round number area, which tends to act as a relevant psychological area. The stop loss is slightly above the last high on the most recent test in the resistance area.
The fact that the market presents strong bearish signs allows me to set the stop loss close to the last high, allowing for a 2:1 risk reward toward the initial target. Also, since the market has already started to progress downward, the stop loss is far enough from the current price to allow breathing room.
Regarding the second target, if the market breaks the 138.00 support, there is a strong profit potential. It might take months for this scenario to develop. However, the potential profit justifies the time the trade can take to develop fully.
That sums up today's update for the challenge. I hope you enjoyed it!:D
Remember to follow me so you can keep up with the challenge!
Until the next trade!