EUR/JPY: Risind Wedge and Hanging Man to Hold further Up Moves?

Saturday, September 29, 2007

EUR/JPY: Risind Wedge and Hanging Man to Hold further Up Moves?

Daily Chart

04-Hour Chart

(CLICK ON THE CHART TO ENLARGE IT)
On Dailies we clearly see a rising wedge with a hanging man last friday Sep. 28th. Whether this rising wedge is a reverse or a continuation pattern is early to say. All daily indicators still favour the bullish.
I´m very inclined to go for the bearish side, but with all indicators on daily, 04-hour and 30-minute charts still pointing up, I´ll be more conservative then. So the points today are:
BUY break 163.90 (the high for several days from May 16th to 31th) with 10-pip stop and 1st target 164.10 (138.00% fibo projection 158.75 - 162.60). Add lots break 164.10 with target 164.70 and 165.30.
SELL failure 164.10 or 163.90 with tight stop and target 163.50. Add lots break 163.50 with targets 163.00 and 162.65

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

Saturday, September 29, 2007

EUR/JPY: Risind Wedge and Hanging Man to Hold further Up Moves?

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