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

Tuesday, October 2, 2007

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

(CLICK ON THE CHART TO ENLARGE IT)
It's nice to see my strategies that were set last weekend working so well during the beginning of this week. On my last post on the EUR/JPY last Saturday Sep. 27th I stated:
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.
It did work very well. Prices did break 163.90 reaching 1st target at 164.10. Then after 164.10 got broken 1st target at 164.70 was hit as well. Good thing...

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

Tuesday, October 2, 2007

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

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