EUR/JPY: Will the Symmetrical Triangle Work?

Tuesday, May 5, 2009

EUR/JPY: Will the Symmetrical Triangle Work?

RESULT (CLICK ON THE CHART TO ENLARGE IT)

WINNER

The Bearish Trend didn´t resume. The yellow trendline hold any further bearish move. But right after I posted this strategy, prices rallied down when prices broke the May 05th´s close at 131.80, hitting the low at 129.90. This was a 190-pip move. Good strategy

INITIAL POST ON MAY 05th

(CLICK ON THE CHART TO ENLARGE IT)
Prices today May 06th bounced downhill after hitting the upper trendline of a Symmetrical Triangle, indicating a short-term bearish trend.
So go SHORT if prices break down the today´s close at 131.80.
Go LONG if prices break up Today´s high at 132.80

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, May 5, 2009

EUR/JPY: Will the Symmetrical Triangle Work?

Posts Organized by Pattern

Posts Organized by Date

Useful Links

My Setup

6 Ps: Patience, Perseverance, Passion, Practice, Pull (The Trigger), Paperwork