EUR/JPY: Inverted Hammer on Jan 18th will Push it to 158.60? (Resul from Post Entered on Jan 20th)

Monday, January 21, 2008

EUR/JPY: Inverted Hammer on Jan 18th will Push it to 158.60? (Resul from Post Entered on Jan 20th)

05-Minute Chart

(CLICK ON THE CHART TO ENLARGE IT)
Even though I had posted on Jan 20th that EUR/JPY was bullish just to see it drop from 156.25 (close Friday Jan 18th) to 152.77 (low today Monday Jan 21th) thus making a 348-pip move against my opinion, I consider this post a winner one, due to the fact that I had said:
" BUY break 156.30 with STOP 155.95 and 1st LIMIT 157.00. Close half position, move STOP to 156.50 and LIMIT 158.00".
Prices never broke 156.30 so I wouldn´t had been stopped out. And more importantly I said in my post:
"If the bearish resumes, SELL break 155.00 with tight 20-pip stop and LIMIT 153.70".
Prices did break 155.00 straight reaching my target at 153.70 thus making a 130-pip profit move. This was a very positive analysis. See the attached 05-Minute chart for points.

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

Monday, January 21, 2008

EUR/JPY: Inverted Hammer on Jan 18th will Push it to 158.60? (Resul from Post Entered on Jan 20th)

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