Tuesday, March 20, 2012

EUR/JPY Short Trade

I am short the EUR/JPY.   The set up is on the hourly chart and is an AB=CD within a channel.
I entered at the "D" point which is just inside the channel.   The purple boxes on the indicators show a divergence between the indicators and price.   I have placed my stop further outside the channel so it is above the 1.272 Fibonacci extension which I hope will give me some extra protection if the price spikes through the channel.   This means I simply reduce my trade size so that my £ risk is within my money management strategy.

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