On June 15 2023 I posted on social media @AidanFX “Bought USDJPY at 140.24 Stop Loss at 139.84 Target/TP at 140.84 – 141.04 area“
BUY Trade Setup
1. Price sweeps the previous day low for a liquidity grab fuelling the buy side. (Blue Line)
2. RSI indicator and price form a bullish trend reversal divergence pattern. (Purple Line)
3. Price breaks above internal structure lower high (MSS Red Line) forming a market structure shift pattern signalling bearish weakness.
4. After break above MSS line price re-traces lower to the FVG (Fair Value Gap/Pink Box) and respects this zone. BUY trade is triggered.
USDJPY 15 Minute Chart June 15 2023
Entered the BUY trade at 140.24 with Stop Loss at 139.84. On June 16 2023 USDJPY moves higher to the proposed 1:2 RR target at 141.04 and extends even higher to hit the 1:4 RR target 141.84 for +160 pips (+4% gain risking 1% on every trade).
USDJPY 15 Minute Chart June 16 2023
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media you too could have caught the USDJPY move higher.
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 social media for updates and questions> @AidanFX
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