EUR/JPY: 169.00 Marked a Double-Top. Is 160.50 The End Of This Correction?

Sunday, August 5, 2007

EUR/JPY: 169.00 Marked a Double-Top. Is 160.50 The End Of This Correction?

(CLICK ON THE CHART TO ENLARGE IT)
Prices on daily chart got erratic this week after hitting the bottom of the bullish channel at 160.60. Monday July 30th, the day after I posted this analysis on July 29th, worked very well. I´ll repeat it here:
" LONG break 161.70 with tight 20/30 pip stop and target 162.50. Add new lots at break of 162.00 (38% fibo of last major up move 150.78 to 169.00) and at break of 162.35 (62EMA on 30-minute chart)".
All entry points worked. Prices rallied to 163.50, which is 180 pips from my first entry point at 161.70.
(See the 04-hour chart for July 30th opening)

TRADING STYLE

Even though we are considered Day-Traders, our trading sometimes requires different styles, according to the patterns and/or how the market moves during our trading sessions. All strategies presented in all posts below are for Positioning but, depending on how markets behave, our style can change so that we can capture good trading opportunities......

Our Trading Styles are discriminated as below:

1) Scalping: Short-term trades, usually betwen 2 to 15 minutes, with stops lower than 8 pips, targeting 15 pips. Generally our Scalping trades apply very low stops (5 pips) aiming quick surges in prices of around 10 pips, in a matter of a very few minutes.................................................................................................
2) Day-Trading: this is our main Trading Style where we dedicate most of our time. Their lenght is usually betwen 10 to 60 minutes, sometimes for more than 2 hours, with stops between 10 and 20 pips and targets between 20 and 60 pips...
3) Positioning: Long-Term trades based on Daily and 4-Hour charts, with stops between 20 and 40 pips, targeting minimum 60 pips. Most of these trades have Open Limits......................................................

Money Management

This is a crucial aspect of our trading, considering the different styles we apply to our trading Sessions. As the Positioning Style requires larger stops (usually the double of our Day-Trading Style), their lot size is lower than usual, generally 50% of our standard lot size. As the Scalping style requires lower stops (usually half of our Day-Trading style), their lot size is usually 150% of our standard lot size. For instance: let´s suppose that our current standard lot size is 200K. For Scalping trades the lot size will be 300K and for Positioning it will be 100K...................................

Daily FOREX Analysis - Brasil

Sunday, August 5, 2007

EUR/JPY: 169.00 Marked a Double-Top. Is 160.50 The End Of This Correction?

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