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Chart of the Day: Bullish pattern in the AUDJPY

This is potentially a very bullish pattern on the AUDJPY, targeting a move into the high 87’s over the next several weeks. Trades should be entered on strength above the trendline (roughly 82.00 in today’s trading) against a stop somewhere in the 77.00-79.00 area. (Remember, a closer stop is more aggressive.) Initial profits could be taken at a point equal to one times the initial risk on the trade, with further reductions as the trade plays out.

AdamHGrimes

Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.

This Post Has 2 Comments

  1. Abejorro Negro 07/28/2012

    The chart looks nice, but entering above 82 with SL at 77 and Target 87 would yield reward/risk of 1/1 only. Why not e.g. SL 81.50 with R/R 10/1 and re-try if your stopped out?
    How do you prioritize your trades? There are a lot of set-ups, a few may look worse than others, but may have a R/R of 5/1. Any thoughts?
    Do you always trade on the same time frame or try to have a mix?

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