EUR/JPY ready to confirm the biggest trend change in many years
Even though I post Chart patterns that have finished or are almost finished, let met share with you an unfolding pattern in EUR/JPY so you can easily follow it.
EUR/JPY has been rallying lately after a sharp decline this summer and this is forming a HEAD AND SHOULDERS pattern.
This kind of patterns work over 90% of the time and the returns in the first 20 days are usually over 10% with a minimal risk.
After the break of the previous bull trendline, EUR/JPY is in a neutral market so it's not time to short yet.
How to trade it?
The easiest way to trade it is by selling if the price breaks the blue support line, around the 158 area. This gives you the potential to move to 140 area, where:
1. You can win 8% in few days without leverage.
2. You just need to risk around 1,5% by using a tight stop loss.
So the profit will outweigh the risk by 5 times.
The risk management trick
Instead of investing everything in the previous idea, you could:
1. Invest 50% with a take profits at the 150 target. This is over 2% returns.
2. Keep investing 50% for an 8% return.
When the first TP occurs, you earn more than what you owe for the stop loss of the second position, meaning you have a now a sure trade whatever happens to the other 50%.
You keep risking 2% but you lock in profits as soon as the price touches 150.
EUR/JPY has been rallying lately after a sharp decline this summer and this is forming a HEAD AND SHOULDERS pattern.
This kind of patterns work over 90% of the time and the returns in the first 20 days are usually over 10% with a minimal risk.
After the break of the previous bull trendline, EUR/JPY is in a neutral market so it's not time to short yet.
How to trade it?
The easiest way to trade it is by selling if the price breaks the blue support line, around the 158 area. This gives you the potential to move to 140 area, where:
1. You can win 8% in few days without leverage.
2. You just need to risk around 1,5% by using a tight stop loss.
So the profit will outweigh the risk by 5 times.
The risk management trick
Instead of investing everything in the previous idea, you could:
1. Invest 50% with a take profits at the 150 target. This is over 2% returns.
2. Keep investing 50% for an 8% return.
When the first TP occurs, you earn more than what you owe for the stop loss of the second position, meaning you have a now a sure trade whatever happens to the other 50%.
You keep risking 2% but you lock in profits as soon as the price touches 150.
บันทึก
The price is moving to the blue trendline acting as a support as expected. Let's see what happens when the price arrives to the support zone where a HISTORICAL head and shoulders would be confirmed.การซื้อขายยังคงดำเนินอยู่
EUR/JPY is approaching the head and shoulders neck line. Be careful, we could see an important bearish market here!!
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