CADJPY short: continuation of a downtrend?
Cập nhật
There is so much going on on CADJPY.
The main chart, showing the bigger picture, highlights a downtrend with the setup of the moving averages, but it is also clear that the price is going down recently.
If we have a closer look, we can appreciate more details of recent price action and how the trade is structured:
The entry point is placed on a small reaction by sellers to a good level of resistance. Obviously, I would have preferred better candles to play this rejection, but since we have other strong elements in favour of a short position, I'm ok with this kind of reaction and I don't want to compromise my risk to reward ratio to have a better confirmation.
Regarding the stop loss, we have two main levels to consider. The first one is right above the short term resistance. As I mentioned above, at the moment it is clear that we have a downtrend, but reaction by sellers is not that strong. For this reason, I preferred a safer stop loss, placed above an important swing high (as shown in the chart above).
The take profit is placed at 76.30, trying to catch a new lower low on the market, but I will also consider removing part of my position around 77.60, where we have a previous important swing low.
There is also a chance that the price will follow an ascending triangle formation, so I will keep an eye on the uptrend line at the bottom.
Good luck everyone!
The main chart, showing the bigger picture, highlights a downtrend with the setup of the moving averages, but it is also clear that the price is going down recently.
If we have a closer look, we can appreciate more details of recent price action and how the trade is structured:
The entry point is placed on a small reaction by sellers to a good level of resistance. Obviously, I would have preferred better candles to play this rejection, but since we have other strong elements in favour of a short position, I'm ok with this kind of reaction and I don't want to compromise my risk to reward ratio to have a better confirmation.
Regarding the stop loss, we have two main levels to consider. The first one is right above the short term resistance. As I mentioned above, at the moment it is clear that we have a downtrend, but reaction by sellers is not that strong. For this reason, I preferred a safer stop loss, placed above an important swing high (as shown in the chart above).
The take profit is placed at 76.30, trying to catch a new lower low on the market, but I will also consider removing part of my position around 77.60, where we have a previous important swing low.
There is also a chance that the price will follow an ascending triangle formation, so I will keep an eye on the uptrend line at the bottom.
Good luck everyone!
Đóng lệnh: dừng lỗ
Find out more at itstradingtime.com/
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.