EURJPY BUY: PRICE MADE A RAPID RECOVERY AFTER TESTING SUPPORT FIBONACCI CLUSTER AND ASCENDING CHANNEL



In comparison with my last trade "MY FIRST TACTFUL POSITION SINCE A WHILE ENDED WITH +75 PIPS", this was easy. I put every little detail into account; I think I should take this credit (I am often reluctant about this). I would have loved my profit to be at least twice my risk but the ascending channel from 4-hour time frame was small and my analytical method would not have me set a higher target. Although price traded even higher after it had hit my target, I was glad I was out when I did with + 50 pips.

EURJPY formed a rising channel on 4-hour time frame. This was marked out by the blue line.

On 1-hour time frame, Fibonacci retracement tool was drawn from swing 1 to swing 2 and Fibonacci expansion tool was drawn from swing 2 to 3 and then to 4. The resulting cluster was marked out by the green lines. The cluster sits close to the support side of the channel and a thin trend line drawn to ascertain my stance.

I went long immediately a doji formed at the confluence and set Stop Loss at 123.66 (30 pips – below swing 1) and target at 124.44 (50 pips – at the resistance of the ascending channel).

EVENTUALLY



It didn’t take long before my effort paid off. It was a smooth ride to my target.

Profit/Loss: + 50 pips


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About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.
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