I've identified a short opportunity for AUDJPY on the 3-hour chart using Elliott Wave analysis.
The current price level is around 103.325, and I'm entering the trade at this point. The chart shows the completion of wave (5) and the potential start of a corrective wave (c), indicating a downward movement.
My target levels are set based on the Fibonacci extensions of wave (a). The targets are at the 0.526, 0.618, 1, and 1.618 Fibonacci extension levels, which are around 103.227, 102.780, 100.930, and 97.936 respectively.
To manage risk, I will place a stop loss just above the recent high of wave (b) at around 104.5. This stop loss level will help protect against any unexpected upward movements while allowing for typical market fluctuations.
As the price approaches the target levels, I will monitor the trade closely. If the price shows signs of support or reversal near any of the targets, I will consider taking profits and adjusting the stop loss to break even or slightly lower.
By following this strategy, I aim to capitalize on the expected downward movement in AUDJPY while effectively managing risk with clear entry, target, and stop loss levels.
The current price level is around 103.325, and I'm entering the trade at this point. The chart shows the completion of wave (5) and the potential start of a corrective wave (c), indicating a downward movement.
My target levels are set based on the Fibonacci extensions of wave (a). The targets are at the 0.526, 0.618, 1, and 1.618 Fibonacci extension levels, which are around 103.227, 102.780, 100.930, and 97.936 respectively.
To manage risk, I will place a stop loss just above the recent high of wave (b) at around 104.5. This stop loss level will help protect against any unexpected upward movements while allowing for typical market fluctuations.
As the price approaches the target levels, I will monitor the trade closely. If the price shows signs of support or reversal near any of the targets, I will consider taking profits and adjusting the stop loss to break even or slightly lower.
By following this strategy, I aim to capitalize on the expected downward movement in AUDJPY while effectively managing risk with clear entry, target, and stop loss levels.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.