EURJPY Technical Analysis
EURJPY : Using trading filters/confirmations is key to determine and to signal a trader on which side to trade the market. Trading filters/confirmations are strategies used to analyze the market. A trader should never trade off one strategy and should always combine strategies together to get a better read of the market. Trading filters/confirmations allows a trader to trade only what “they” see and to trade with the momentum of the market.
EURJPY 1 Hour Chart 1.24.2020 : (Confirmation 1) Price breaks the purple Higher High/Higher Low sequence and commences the orange Lower Low/Lower High sequence signalling a possible reversal in trend. (Confirmation 2) Indicator crossed below the 200 EMA signalling a trader to only look for possible selling opportunities. (Confirmation 3) After the first Lower Low registered bearish divergence formed signalling a trader to look for selling opportunities. (Confirmation 4) Price respects the 50 EMA confirming the 1st momentum breakout SELL entry (green) and respects the 50 EMA again confirming the 2nd momentum breakout SELL entry (pink). Both SELL entries hits 1:1 RR Target. (Confirmation 5) Continuation of trend bearish divergence forms on the last lower high (orange LH) which produces another move lower and also respects the 50 EMA signalling the move lower is still active. Expecting price to continue lower and HIT 1:2 RR Targets.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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