EUR/JPY Trade Plan (1 June 2017)
View: Bullish EUR/JPY
Trigger: When the ‘daily’ Simple Moving Averages (SMA’s) align perfectly to the upside:
This occurred as of the close of trade on May 31, 2017 when the 50SMA finally crossed above the 100SMA thus making all SMA’s perfectly ordered and aligned upwards. This is all the more powerful because the alignment is on a daily chart (as opposed to a 4hour chart).
It’s a simple but effective strategy: if at the close of a daily candle I see all the daily SMA’s(10/20/50/100/200) ‘perfectly aligned’ above each other, then probability ‘strongly’ favours a long position over a short position.
Trade: Buy EUR/JPY at 124.65
Stop Loss: 123 (below WS2 123.091 & 30 May Low 123.155).
Trail order as the trade moves into the money.
When trade is 100pips in the money, trail price by 50pips to lock in half profit.
When the trade is 150pips in the money, trail price by 75pips to lock in 75pip profit
Gradually move SL to Break Even
Monitor the daily SMA’s at the close of trade each day and if they fall out of the perfect ‘long’ alignment, exit the position as the trade is no longer valid.
Target Zone: 127 ‘round number’, Weekly R3(127.129), Monthly M4(127.434) Resistance Zone
Target Price: 127.15
Max gain: 250pips
Max Loss: 165pips
Target timeframe: by June 30, 2017
Alternative Entry Price: Weekly M2: 124.266 or Monthly Pivot Point(central) 123.884
May your trades be profitable.