Today were going to take a look at a very nice setup on the NZD/JPY
As with yesterday’s technical analysis were going to use 3 charts for our technical analysis, The daily, 4 hourly and the hourly charts.
If we take a look at the daily chart below we can clearly see we are nearing a previous bottom that has failed to break several times forming a very strong support level.
On the 4 hourly charts we can see a potential double bottom forming.
Finally On the hourly chart we can see the pair has been ranging very strongly with 58.75 acting as our main support level for over 6 hours now giving us our long entry point.
Now for our entry!
We are looking to enter our trade at or just before the short term support level at 58.75; I personally have entered at 58.78.
For our stop loss we are looking to place it a short distance below our major support level on the daily chart, I’ve placed my stop 40 pips away from my entry at 58.40.
As for our take profit we have plenty of potential for a strong upward move, initially we will target 120 pips at the 50% Fibonacci retracement level of the latest downward move which happens to coincide with the psychologically significant 60.00 price level.
This trade gives us an approximate Reward: Risk ratio of 3: 1.
Remember to leave your thoughts and feedback!
Happy trading, Lee J Brown
http://www.profxblog.com/
No comments:
Post a Comment