Hey traders, I'm currently looking to jump in on the second stage on a short on the EURJPY
I took an initial short and cashed the profits. Now for the second swing here is what I'm looking at:
Price broke an outer trendline and an horizontal support wich opens the door to a big move for the downside
The ideia is to sell the pullback.
The ideal entry would be the supply level around the 50% retracement.
Also agressive traders could tight the SL just above the supply level improving the rr
However my setup will be this one: Since i'll be out part of the day tomorrow i cannot follow PA and wait for a confirmation signal.
Also i do not trade on Friday afternoon ( trading plan rules).
So i'll do the following: I'll scale in 3 orders ( dividing my lot size in 3 equal parts).
1st part at the 38.2 fib ret, 2nd at 50% and the third and last one at the 61.8 fib retracement. Those will be my entries.
My SL will be above the last swing high. I will reduce my rr ratio but ill improve my probability of success by giving space for some volatility that can come.
Going to the weekend with the possibility of a war is something that traders dont whant to assume the risk but i'll be ok with this because the SL is at a defensive price.
Also i will reduce my normal position size to half
I took an initial short and cashed the profits. Now for the second swing here is what I'm looking at:
Price broke an outer trendline and an horizontal support wich opens the door to a big move for the downside
The ideia is to sell the pullback.
The ideal entry would be the supply level around the 50% retracement.
Also agressive traders could tight the SL just above the supply level improving the rr
However my setup will be this one: Since i'll be out part of the day tomorrow i cannot follow PA and wait for a confirmation signal.
Also i do not trade on Friday afternoon ( trading plan rules).
So i'll do the following: I'll scale in 3 orders ( dividing my lot size in 3 equal parts).
1st part at the 38.2 fib ret, 2nd at 50% and the third and last one at the 61.8 fib retracement. Those will be my entries.
My SL will be above the last swing high. I will reduce my rr ratio but ill improve my probability of success by giving space for some volatility that can come.
Going to the weekend with the possibility of a war is something that traders dont whant to assume the risk but i'll be ok with this because the SL is at a defensive price.
Also i will reduce my normal position size to half