Long based on trendline 3rd touch
Additionally supported by COT data 80% Non-Comm Inst. Reportables Long USDJPY.
(too late but will edit with a better write up later)
Trade upon confirmation C2 level, then if C1 level.
C1 will be double the volume of
C2 in order to compensate for risk taken with C2.
C1: risk 55 Rew 80
C2: risk 70 Rew 204
Net Risk: 125 Rew: 284 = 2.27
Expecting a small bullish move after touching the key area (yellow highlighted rectangle). Based of last couple of times the area has been touched. (See Green Arrows). Average price action after touching the area is 70 pips (see price range, left).
Risk/reward: 20/20 = 1
Confidence: 60%
It fits within my risk management criteria, for the new month.
If the price shows a reversal pattern in the C range I will enter a low risk short targeting the green area, D range, and manage trade accordingly.
If D range is met, I will enter a low-risk buy and a high-risk buy
