Good timeframe correlation on AUDJPY to short
Updated
Using linear regression and resistance to guide this trade, across multiple timeframes there is reasonable indication that the price could be overbought and move lower.
ENTRY
At the time of the video, there was some support appearing on the lowest time frames (5, 15min) but should that get broken a move towards the mean of the linear regression channel is viable.
STOP PLACEMENT
A stop could be placed above yesterday's high (27th May 2019), or a more conservative stop could be placed above the high on 20th May.
PROFIT TAKING
Profit taking could be at the mean of the linear regression channel or at the lower linear regression channel. In both cases, with either of the stoploss placements described above, the reward to risk on the trade exceeds 1:1.
What are your thoughts? Do you agree?
ENTRY
At the time of the video, there was some support appearing on the lowest time frames (5, 15min) but should that get broken a move towards the mean of the linear regression channel is viable.
STOP PLACEMENT
A stop could be placed above yesterday's high (27th May 2019), or a more conservative stop could be placed above the high on 20th May.
PROFIT TAKING
Profit taking could be at the mean of the linear regression channel or at the lower linear regression channel. In both cases, with either of the stoploss placements described above, the reward to risk on the trade exceeds 1:1.
What are your thoughts? Do you agree?
Trade closed: target reached
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