EUR/JPY: Shooting Star at 125.25 Resistance Level Will Drop Prices to 121.45?

Saturday, May 1, 2010

EUR/JPY: Shooting Star at 125.25 Resistance Level Will Drop Prices to 121.45?

(Click on the Daily chart to enlarge it)

Prices forming a nice Double-Top at 127.70 two weeks ago, along with the fact that they weren´t able to get sustained above the important level 125.25 last week favours the bulls.
The Shooting Star formation last Friday at exactly an important Bearish Trendline as Resistance is also another indicator that the EUR/JPY might has reached a top.
My strategy is to enter SHORT at 124.92 / 125.25 as Resistance, or below the following supports: 124.70 / 124.45 / 123.75

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, May 1, 2010

EUR/JPY: Shooting Star at 125.25 Resistance Level Will Drop Prices to 121.45?

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