February 4th, 2010
By: Ashley
Our trading methods indicate a potential short on USD/JPY. Yup, thats it. Just one pair.
If we look at the Yen, we are starting to see a lot of profit taking, or perhaps a consolidation of the massive drop from yesterday. While the price is still well below the moving average, and the ADX has dropped pretty low, we think it could go either way. It might have a short uptrend and then turn down. It could continue rising on the uptrend that has developed over the last week, or it could turn down and continue the drop.
Our trading method shows us that it should continue to drop over the next day or two. We are staying out of this trade due to the inconsistancies, however if we were to place this trade, we would enter short at market. Our initial stop loss would be 91.080 with a take profit of 88.570. Unfortunately, this gives us a pretty low risk/reward ratio, which is why we are standing aside.
If you were to take the long side, I would buy at market, with a close stop loss of 50 pips, a take profit of 50 pips, and set a trailing stop to follow at 35 pips.
Check back tomorrow to see how our pick made out!
|
Pair
|
Order
|
Entry
|
Stop Loss
|
Take Profit
|
|---|---|---|---|---|
|
USD/JPY
|
Sell | Market | 91.080 | 88.570 |
| OR | ||||
|
USD/JPY
|
Buy
|
Market
|
Entry -50 pips
|
Entry +50 pips
|
IMPORTANT NOTE: These are not Forex picks nor Forex recommendations. This information is provided for educational and informational purposes only. Use this information at your own risk. You MUST apply your own trading methods and your own opinions to an Angel Pair Pick to determine if a trade should be considered. Also, you do not need to trade all of the Angel Pair Pick pairs, nor should you. There's no need to place more than a few trades on any given day and our recommendation is when you get to 6 open positions, don't add any more trades until one of them is closed out.
Note: Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using Angel Pair Picks will generate profits or ensure freedom from losses.
