EURJPY: Example of Short Trade
Euro Fx/Japanese Yen FX:EURJPY
What do you think about such a selling opportunity in the 15m timeframe?
I don’t like swing trades before the weekend, but this trade looks interesting. If we wait for Monday, the price can drop and we won’t have such an amazing risk-reward ratio.
The market looks overbought. RSI is in the overbought zone, and it is going to confirm the price reversal. MACD histogram us supporting the sellers. The market gives us a reversal candlestick pattern as well. We have bearish signals which allow us to open short trades.
Here is an example of a possible sell trade:
Sell below 124.995
Stop above 125.220
Profit Target at 124.315
Risk per trade should be no more than 1-2% from the capital. If the price moves in our direction, it will be good to use a trailing stop.
If the price moves above the local swing high, it will confirm the strength of the buyers and we will have to search for a new trade opportunity.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov