I am not seeing these setups and trends on my charts.
And as you point out, EURJPY has gone short a lot since June 28 0800 EET or so.
What chart time frame shows you the range you describe? I don’t see it. Thank you
Thank you for the comment and question Dave, I am excited to be able to explain what I mean. However, please take a look at the 2 charts I have posted as they are instrumental in my explanation. In fact, you may want to open them in a new screen or print them out so you can refer to them.
Ok, so the first chart you see (should be the EJ Daily) shows that the EJ has been in a free fall since the end of October 2009. That is a bit longer than since June 28th like you mentioned. The reason I show this is because I am a medium term swing trader, I don’t sell in the middle of a down trend unless I can get a REALLY great deal and an obvious area of resistance. What excites me about being long right now is that we have been short for so long. The blue lines on the chart are the areas of Support and Resistance that I feel are important. Between the S&R lines of 113.20 (R) and 108.00 (S) is a great deal of “congestion,” even in the middle of the range – if I am going to sell a pair, I am going to do it at 113, but most certainly not at 108.
The next chart should be the EJ 1 hour chart. The grey part is the range I had mentioned in my previous post – I tried to buy at the bottom of it, but unfortunately for me, price decided to pay it no mind. So I am in a losing trade, what should I do? Close it and take it on the chin? Or find my next area of support that I feel is strong enough to cause a retracement and add to my position (scaling in of course at the pace of doubling my position size).
I hope this helps and I would be more than happy to answer any other questions you might have about my style of trading. Thanks for stopping by!