USD/JPY Sell | S6W1 | Team Trading Contest Post for Team-Frontline
Hello good greetings my fellow Steemians, I trust we all are doing great. I want to thank Professor @dilchamo for your hard work and also giving quick responds to users when the need arises. Today was a sell trade so I will be sharing my trading strategy below:
The name and introduction of the project token, and which exchange can be traded on, project/technical/team background, etc.
The above symbol (USDJPY) means U.S. Dollar/JapaneseYen) Pair. I want you to know that the value of these pairs are quoted as one U.S. Dollar per an amount of Japanese yen. The USD is the based currency while the JPY is the quote currency. You should know that the exchange rate of the trading pairs is recommended as one of the best globally.
These pairs can be traded in foreign exchange market (Forex) such as OANDA, FXTM, OCTAFX, FBS etc. As for this trade i have use the FBS Exchange through Meta trade 4 (MT4) to execute my trade.
Why are you optimistic on this token today, and how long do you think it can rise?
I want to let you know that in trading, there is no nonsense hope hope in the market. This is because you are not the one controlling the market, rather the big banks and companies. Now as a trader your own is to follow the market and watch carefully to know whether the market is going up or down or whether its ranging.
Now you don't want to hold your trade for too long because the market can go against you. As a trader what you are mindful of is to make profit from the market and to protect your account not to blow it up. In order to do this, you have to determine your stop loss, entry point and take profit. The rising of this market depend on if buyers are more than sellers and this can take place when the market goes to the support level. But for this trade is a sell trade.
How to analyze the token? (Using the analysis knowledge learned from professors’ courses)
The strategy i have learned overtime is what i have apply in carrying out this sell trade of USD/JPY trading pairs.
I have made used of the following indicators:
Parabolic SAR
200 Exponential Moving Average (EMA)
Relative Strength Index (RSI)
Entry price: 114.83
Stop Loss: 115.03
Take Profit: 114.83
The RSI was at point 70 before i carry out a sell trade.
The Parabolic SAR was above the market price, which indicate a sell trade.
The 200 EMA was above the candlestick price and this is an indication of a sell signal.
The profit ratio is 1:1.5 this means that when the market goes against my entry, i will loose 1 while if it's in my favour i will make 1.5. This ratio will help you to have good results over multiple trade as the win rates is high. For the purpose of this trade, i have made $1.19 in opening a sell trade with USDJPY trading pairs via MT4 platform.
I will recommend this strategy to all users because it just straight forward. You have to make sure that you know the current market situation either bullish or bearish.
The relative strength index must be at the 70 level which is an overbought level, at this point you should be ready to take a sell trade. While at point 30, is an oversold level and you should be ready to take a buy trade.
Always set your stop loss and take profit and make sure your risk to reward is more than your stop loss.
Thank you for your time.