EUR/JPY and EUR/USD on watch for me today.EUR/JPY:
If price pushes up to and ideally above our upper rayline I'll be looking for a convincing impulse down followed by a tight flag where I'll look to get short with a reduced risk entry.
If the flag forms a little lower than in the example to the left I'll use the lower rayline as a shield by hiding my stop loss behind it for extra protection.
If price pushes up to and ideally above our lower rayline I'll be looking for a convincing impulse down followed by a tight flag where I'll look to get short with a reduced risk entry.
If none of these setups present themselves then I will simply wait until another setup which meets my plan materialises.
If there's any ambiguity I will not place any of these trades.
EUR/USD:
If price convincingly breaks below our descending correction I'll be looking for a reduced risk entry on the break of a more confirmed one hour tight flag.
If price convincingly breaks above both our descending correction and our rayline I'll be looking for a reduced risk entry on the break of any kind of tight flag.
If price impulses above our descending correction and flags below or even through our rayline I'll not be looking to place a trade.
If neither of these setups present themselves then I will simply wait until another setup which meets my plan materialises.
If there's any ambiguity I will not place any of these trades.
