Eurjpy: A Game of Bulls vs Bears

Written by on July 14, 2010 3 Comments

Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading

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The eurjpy is an aggressive long trade setup I took, based largely on price action. There is significant resistance around the level where the market is currently trading,(113.00) and yesterday’s daily candle closed as an engulfing bullish formation right within this zone.

Much of the resistance remains unbroken at 113.50. My initial position is a small one, but I would like to add to my position if, or when this resistance gets breached. The red, horizontal line on the 4hr chart below marks the level I am watching.

My trading strategy is to wait for a bullish 4hr candle to close above 113.50, and then to add to my long position on a retest. My main areas of target for profit are: 115.50/117.00. My Stop loss is currently below the 111.00 area.

If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.

When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.

Another trade I am currently in is: http://www.winnersedgetrading.com/technical-analysis-will-the-bears-take-a-break-in-eurchf/

Other useful blogs:

Forex Crunch: Crown Forex- The Scam Goes On- Now Offering People to Start a Forex Company

The GeekKnows- Daily commentary on eurusd

One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.

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  • http://twitter.com/FXstorm Sophia Smith

    Yes Nisar, the bullish engulfing daily candle closed at resistance, which is part of the reason I labelled this trade aggressive. The bulk of my position will be added later if the resistance gets broken. Thanks for your very valid points :)

  • http://twitter.com/khangi61 Nisar Ali

    As you said there is a very strong resistance level at 113 area and kind of tripple top on H4, if it breaks then could be a good trade but overall trend is downward sot it has to break resistance with full might. Isn't buulish engulfing pattern suppose to be at the bottom but this engulf the candles on the top near resistance, do you still take it as a bullish engulfing pattern.