Cancelled My USD/JPY Forex Limit Order On Friday
On Friday, I had a great set-up on the USD/JPY. Again, since I'm a forex swing trader, this new strategy will allow me to get into more trades.
So, the set-up was the following:
Daily Chart (curve/range time frame) - daily candle in the middle of the curve, but price broke the recent pivot high (white dashed line).
4 Hr Chart (trend time frame) - the trend is up.
60 Min Chart (entry time frame) - the hammer candle (green circle around wick) indicated buy orders just below. But price never came back to my zone. The reason why I cancelled the trade is because if and when price returns to the zone, the uptrend might be over.
As I get some more chart time in using this strategy, because I want to be rule based, I will decide how many pips does price have to move away if order wasn't triggered before cancelling the order. In this example, price has already move 7X (70 pips) what I was willing to risk (10 pips) on trade.
My goal is to look for a minimum Reward:Risk of 5:1, which would imply I can lose 80% of my trades and still be profitable.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Interesting chart to see where the interest rate differentials will lead over time as Japan remains low or even negative.
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Agree, but it's the JPY is a safe haven, so when the Markets drop, so will the USD/JPY.