Potential Trend Continuation Pattern
Updated
Note: As always, before getting into my analysis I want it made very clear that this is just more of me practicing my chart analysis skills, and that I am not taking this trade in real life. I have not back-tested this particular strategy on the USDJPY , so I do not know how likely or unlikely this type of trading strategy would work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation I didn't find this potential set-up till much later. In fact the market has already retraced back into the 0.618 Fib retracement level after breaking below the previous lowest lows of 107.81, and ultimately closing below that low @ 106.78. All that being said, I could have missed out on this opportunity altogether. So I will only be able to hypothetically get involved in this opportunity if the market comes back up to the 0.618 Fib level @ 108.03 again for a third time..... hey it's trading, anything could happen haha. If that were to happen again, I would hypothetically short at 108.03, with a target at 106.78 and a stop lose 10 pips above previous structure highs at around 108.90. So, cross your fingers.
Now I know I keep saying this, but I genuinely believe it. That if you are not practicing your chart analysis like this every day, you are seriously hurting your trading, and your potential to become a consistently profitable trader. Chart analysis is one of the most basic fundamental skills a good trader needs in order to become successful in this field. So, take it seriously and practice it.
Hope you guys have a great day today, and as always, know the risks and plan accordingly.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Alright, let’s go ahead and jump into the analysis. Now in this particular situation I didn't find this potential set-up till much later. In fact the market has already retraced back into the 0.618 Fib retracement level after breaking below the previous lowest lows of 107.81, and ultimately closing below that low @ 106.78. All that being said, I could have missed out on this opportunity altogether. So I will only be able to hypothetically get involved in this opportunity if the market comes back up to the 0.618 Fib level @ 108.03 again for a third time..... hey it's trading, anything could happen haha. If that were to happen again, I would hypothetically short at 108.03, with a target at 106.78 and a stop lose 10 pips above previous structure highs at around 108.90. So, cross your fingers.
Now I know I keep saying this, but I genuinely believe it. That if you are not practicing your chart analysis like this every day, you are seriously hurting your trading, and your potential to become a consistently profitable trader. Chart analysis is one of the most basic fundamental skills a good trader needs in order to become successful in this field. So, take it seriously and practice it.
Hope you guys have a great day today, and as always, know the risks and plan accordingly.
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: stop reached
Update: in this particular trade my analysis was simply just wrong outright haha. the market blew past my hypothetical entry and continued to rally higher stopping me out. while this is unfortunate, it is a natural part of trading as no system works 100% of the time. But this was fun chart analysis practice either way.
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