USDCAD and NZDJPY on The Trade List This Morning
Cory Mitchell, CMT
Long NZDJPY. Awaiting a trade signal on USDCAD.
NZDJPY is similar to the NZDCHF taken yesterday (stopped out). NZDJPY is slightly stronger at the moment.
Bottom of a channel, and a bounce on the 15-minute chart.
- Entry near 63.88.
- Stop loss below 63.7.
- Target near 64.46.
- 3.2:1 Reward to Risk (3.2R).
This pair has fallen off of the descending trendline resistance.
This pair tends to have lots of choppiness around turning points. Therefore, I waited for the price action to indicate the price is heading lower again. We have that now.
Still need to wait for an entry signal (while I'm awake, there was one while I was asleep). This will mostly likely be a bounce higher again which stalls out below the prior swing highs and then starts dropping again.
See the price action video below for more details on analyzing price action.
So I don't have a trade yet in this one, but possibly later today or next week. If it happens today, Friday, check out the article on holding trades through the weekend.
I am in a workshop today with Van Tharp, so I won't be watching my charts through a chunk of the afternoon. Most likely I will be looking for the entry next week.
Here is the video on price action analysis.
By Cory Mitchell, CMT @corymitc
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.
Assume I have positions, all the time, in many pairs.
Trades are based on strategies and are not meant to be predictions. The number of trades won varies between 30% and 60% based on the strategy. My objective is to make money based on solid reward:risk ratios, not try to predict every move of the market.