Trade view /
04 October 2016 at 13:31 GMT
Just taken a USDJPY short (2 units). Here is why and how I want to play the trade. Will most likely be off before NFP on Friday (Non-farm Payrolls)
Monthly: Highlights three inside months, a clear sign of investor indecision. We are between the 50% and 61.8% pullback levels at 100.57-94.61. Trendline support (channel base) is at 97.60
Source: Saxo Bank. Create your own charts with Saxo Trader click here to learn more
Weekly: Highlights a bearish five-wave count completed. However, we have no clear indication of a change of trend and could easily see a fifth wave extension (Elliott Wave). Parity (100.00) is being a substantial level to break
Intraday (one-hour chart) – We have stalled at our zone of bespoke resistance (102.55-90). The two-hour chart has highlighted a DeMark correction 9. We have a 261.8% extension at 102.44 (from 100.07-100.98)
Ten minute (trigger chart) – We have an Ending Wedge formation. On a break the target is 102.05. This is backed up by bearish divergence. The 30-minute chart has given us an Evening Doji Star
This trade has filled our criteria of system (Grey Box), Reactive (Evening Doji Star) and Predictive (Sell Zone).
Management and risk description
This is counter trend so not leaving any units on to run.
short two units at 102.53
102.05 and 101.75 (2nd depending on price action)
— Edited by Clemens Bomsdorf
Non-independent investment research disclaimer applies. Read more