USDJPY: If You Hate Patterns Don't Look At This
I like to think that each currency pair has its own genetic code. Some pairs move very harmonically, some pairs do not. One of the reason that I like to keep my trading portfolio small is so that I can get a good feel for how each pair likes to move. Over the past few years I noticed that the USDJPY likes to go on these insane rallies....followed by consolidation in the form of a wedge pattern. Check out a daily or weekly chart and you'll see exactly what I mean.
If there's one thing we know about consolidation is that "Consolidation Yields Patterns" And over the past few weeks this has been one of my favorite pairs to trade. I typically don't like the JPY but it's been a big help in pulling me out of some recent drawdowns.
As I noted in my WEEKEND REVIEW video today, I'm currently short on a Gartley pattern completion at 118.65. this is still a tradeable pattern, but the risk/reward has become slightly less attractive due to the retest of the X leg. However, looking towards the future, IF price action does roll down in my favor THEN we're most likely to retest the previous structure lows once again. IF you're looking for an entry reason at that support level THEN look no further than the potential bullish bat pattern that we have setting up.
I get asked a lot about where do stops go and I teach a handful of techniques to measure them. But in general I ALWAYS place my stop loss beyond structure and in the case of advanced patterns (Gartley's, Bat's & Cyphers) The "X" leg should always be a level of structure.
You can check out my latest video here, which breaks down a similar opportunity on the GBPJPY youtube.com/watch?v=kGgLT0fBdjw&list=UUVveEks3MWZqOsvzTF_LGQg
If there's one thing we know about consolidation is that "Consolidation Yields Patterns" And over the past few weeks this has been one of my favorite pairs to trade. I typically don't like the JPY but it's been a big help in pulling me out of some recent drawdowns.
As I noted in my WEEKEND REVIEW video today, I'm currently short on a Gartley pattern completion at 118.65. this is still a tradeable pattern, but the risk/reward has become slightly less attractive due to the retest of the X leg. However, looking towards the future, IF price action does roll down in my favor THEN we're most likely to retest the previous structure lows once again. IF you're looking for an entry reason at that support level THEN look no further than the potential bullish bat pattern that we have setting up.
I get asked a lot about where do stops go and I teach a handful of techniques to measure them. But in general I ALWAYS place my stop loss beyond structure and in the case of advanced patterns (Gartley's, Bat's & Cyphers) The "X" leg should always be a level of structure.
You can check out my latest video here, which breaks down a similar opportunity on the GBPJPY youtube.com/watch?v=kGgLT0fBdjw&list=UUVveEks3MWZqOsvzTF_LGQg
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anchor.fm/thetradingcoachpodcast
NEW Daily Trading Videos Available on My YouTube Channel - youtube.com/akilstokes
"The Trading Coach Podcast" - New Episodes Daily Available on your favorite podcasting app!
anchor.fm/thetradingcoachpodcast
NEW Daily Trading Videos Available on My YouTube Channel - youtube.com/akilstokes
anchor.fm/thetradingcoachpodcast
NEW Daily Trading Videos Available on My YouTube Channel - youtube.com/akilstokes
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