With the Trend trendline Bounce (6/7/07) EURJPY+120Pips

December 9th, 2007 expert Posted in FOREX TRADING STRATEGIES and CONCEPTS, FOREX TRADING ENTRY STRATEGIES, FOREX TRADING EXIT STRATEGIES |

ONLINE FOREX TRADING CONCEPTS:  Relative strength of currencies, Non horizontal Support trendlines,  Weekend market close exit, Following stop, Triangle breakout.

6julyeurjpy130.gif

Currently the JPY is one of the weakest currencies depreciating against all other major currencies (except the US$). The GBP and EUR are currently the strongest major currencies appreciating against all other currencies. This information is obtained by comparing the trends of all the major currencies compared with all the other major currencies on a monthly, weekly, daily and 4 hourly basis. A future trade of the day will feature this analysis.

We were therefore looking for any excuse to use the JPY’s weakness and the EUR or GBP’s strength to trade motivate a trade. We noticed that a strong non horizontal upward sloping trendline was giving the EURJYP strong support as it trended upwards on the 1 Hour chart. We therefore followed this trendline with a buy entry order place in a position that would anticipate an upwards bounce off this trendline. This occurred at 166.85 when the price went to retest the support line. The trade soon went positive and the next concern was that the price was trading in a triangle and that the upper triangle resistance line would bounce the price back. The stop was moved to breakeven when the price reached the 167.25 area but it soon broke through and headed north.   Our target was the top of the upper channel but we decided to close the deal at the close of the weekend market as we were +120 pips at that stage, which is what we did. Sometimes a bird in the hand is worth 2 in the bush.

www.Expert-4x.com is a sponsor of this free educational blog and uses many of the concepts high lighted in these postings for its daily alert services.

Leave a Reply

You must be logged in to post a comment.

Disclaimer:-The information on online Forex trading presented on this webpage should not be regarded as forex or currency trading advice. Currency trading and fx trading is highly speculative and should only be done with risk capital. Foreign Exchange prices rise and fall and past performance from currency trades is no assurance of future performance. This online forex trading webpage is a currency trading information and technical analysis webpage only. Accordingly, we make no warranties or guarantees with respect to the correctness or validity of its content. Forex traders making use of the online currency trading information presented do so at their own risk. The information provided herein does not take into account their forex investing objectives, financial situation or needs of any particular person. This site is not intended to by used as the only source of currency trading information or forex education. It is important and assumed that traders use sound trading principles when using the online forex trading information on this currency trading site. This includes trading common sense, sound money and risk management and full personal ownership of any trading decisions. Investors should obtain individual financial advice based on their own particular circumstances before making any foreign currency investment decision