EurJpy - weekly channel resistance

It has certainly found reverse now.

Im going long at 101.96 with a 30 point stop

The main up trend line is at 101.94 and the 200sma is at 102.09 so thats 2 levels of support close together.





This is a first attempt basis trade
DYOR
remo

Good luck remo. I'm not so sure about this pair. Here's why:



dl.dropbox.com/u/20815047/EURJPYdaily05_11_12.gif

It looks to me like it's completed 5 waves up on a bearish RSI divergence which was tested and held during the subsequent lower high. Also, if that RSI breaks down before the price then that suggests weakness. I could be wrong of course, but I think I'll wait to see if it comes back to the 61.8% Fib of the whole move up as there's also strong support from the 97.8 area.

All IMHO etc.

hi jackozy.

You have to remember that im a short term trader ...
My aim is to catch the initial bounce then start to take profits. I always place a trade at known supports and trendlines on first attempts. I find it the best way to make a quick profit.
I actually keep it very simple.
remo

Hi gang, just popping in for 5 mins. Remo, i dont have decent charts with me, but i would say that yo dont need to risk 30 points on this trade, to make it a good trade 15 points risk looks like the play. What sort of proffit are you looking at ? KI.

Thanks for clarifying that remo. Trading timeframe is an important and often overlooked element of success. We talk a lot about entries too, but perhaps not enough about exits/targets.

Anyway, I'm sure you're right and there'll be a bounce there - supports and resistances are a lot more reliable than EWT for trading from but I still think that a bounce there will be fairly short-lived so I'd be looking to exit no higher than the downtrend line which I have at 103.911 today (falling daily) or a Fib retrace of the last mini-drop - just a classic exit at resistance I suppose.

Your 3 contract method certainly helps overcome the issue of when to exit too.

Thanks again.