I'm looking at a short setup on the USD/JPY pair based on the 1-hour chart using Elliott Wave analysis. Here’s my strategy for this trade:
- Entry Point: I'll enter a short position at the current price level of around 160.920. This comes after the completion of corrective wave (b), suggesting a downward move.
- Targets: My primary target is the 1.618 Fibonacci extension level of wave (a), which is approximately at 158.706. The initial target will be at the 1.000 Fibonacci extension level of wave (a), around 159.708.
- Stop Loss: To manage risk, I'll place a stop loss just above the high of wave (b), at around 161.500. This stop loss level is chosen to account for normal market fluctuations while protecting against a significant move against my position.
- Trade Management: I will monitor the trade closely as it approaches the initial target of 159.708. If the price shows signs of reversal or strong support at this level, I might take partial profits and adjust my stop loss to break even. If the price continues to move in my favor, I will hold the position towards the extended target of 158.706, ensuring to lock in profits along the way by trailing the stop loss.
This setup is based on clear Elliott Wave patterns and provides a favorable risk-reward ratio. By following this plan, I aim to capture the anticipated downward movement while effectively managing risk.
- Entry Point: I'll enter a short position at the current price level of around 160.920. This comes after the completion of corrective wave (b), suggesting a downward move.
- Targets: My primary target is the 1.618 Fibonacci extension level of wave (a), which is approximately at 158.706. The initial target will be at the 1.000 Fibonacci extension level of wave (a), around 159.708.
- Stop Loss: To manage risk, I'll place a stop loss just above the high of wave (b), at around 161.500. This stop loss level is chosen to account for normal market fluctuations while protecting against a significant move against my position.
- Trade Management: I will monitor the trade closely as it approaches the initial target of 159.708. If the price shows signs of reversal or strong support at this level, I might take partial profits and adjust my stop loss to break even. If the price continues to move in my favor, I will hold the position towards the extended target of 158.706, ensuring to lock in profits along the way by trailing the stop loss.
This setup is based on clear Elliott Wave patterns and provides a favorable risk-reward ratio. By following this plan, I aim to capture the anticipated downward movement while effectively managing risk.
Trade active
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.