USDJPY reversal to the Downside

[jbtrader]

Daily reversal yesterday suggests further weakness.

 

A few of the pairs look weak as well such as AUDJPY, NZDJPY, EURJPY, CADJPY

 

Take your pick - the chart pattern on all looks similar and it is showing weakness

 

Cheers,

 

JB.

 

 

[jbtrader]

Hey Caseynotes,

 

I am looking to short EURJPY at 116.12 which is just below yesterdays low.

 

Thanks for the update on Zero.

What a shame. I miss his contribution.

 

Cheers,

 

JB.

 

 

[Mercury]

Yeah I'm not sure I can be either accused or credited with trying to drum anything into anyone...  Especially those who day trade, which I specifically do not and therefore my analysis and trading strategy is not relevant to day traders.

 

If you trade off higher time frames than that used for day trading (e.g. hourly) and use even higher time frames to identify trends and turning points then you must by definition have wider stops than a trade off a 5 min chart.  To make that work you also need a smaller bet size of a larger account.  However the points available on the higher time frame traders are also greater so for example a £2 position can net a 500+ points haul with, say, a 100 point stop.  Personally I seek a minimum of 3:1 reward/risk ratio and actually ideally even higher than that for high likelihood, low risk turning points. 

[Mercury]

Exactly right on the competing with robots thing.  I find I do much better when I spend less time watch the market moves constantly.  One thing that walking away does do for you is helps avoid those Bull/Bear traps you highlighted in your turtle soup post.  If you are not watching the candles as they unfold you are not tempted to jump in.  Cold refection at a later stage then helps make the correct call.