Hi everyone
First post there lol. I currently have a short position on USD/jpy pair @ 84.109. However, it kept rising yesterday… if I get out now, I might still have a overall gain, since the market is not active yet.
So,what do you think I should do?
Thanks!
I think you are thinking too much about a single trade. If you adhere to proper money management and you have an edge in the market, you should be exited about every trade you enter regardless of the outcome.
Why did you enter a short position?
What is your exit strategy?
My personally, the UJ still looks bullish. But that’s me.
My overall suggestion would be to close out of the trade, and never enter into another one without a clear reason as to why you are and a clear exit strategy.
Hard to give any advice since we do not know your strategy…
What I can tell you is that U/Y is still looking bullish, although there are some signs of exhaustion in the latest move… I think there is a good chance we see 85.30 before any major move down
Hi wllen1
I don’t like to pass up the opportunity to post a chart or two and show the whole community just how little I know LOL, so here goes:
First off, if we zoom the daily chart in a bit we can see that the pair has closed above previous resistance (denoted by yellow line) for the last 4 trading days. Granted in the last two days it has closed down on the respective opens, but still above previous resistance.
Also you’ll notice in the last two days price has formed two “hanging men” candle formations. The last 3 times I’ve traded a hanging man I lost and it’s becoming a signal that I am losing faith in a little, that said, since they have formed up at previous resistance, you must take notice of them I guess.
Then if we zoom out a little:
We can see the 4 days close above previous resistance a bit clearer. I’ve also marked a small previous daily range in blue and if the pair WAS to fall I’d be expecting the top of that range (roughly 82.85 ) to be the next support.
Zoom out a bit further:
Now we see better where we are in relation to previous levels. Price has currently reacted to previous resistance around 84.50/60 (denoted by the orange lines) and if it WAS to break up through that then I think yunny1 is spot on that into the 85.30 to 85.50 is the next level.
If we drop down to the 4 hour chart;
We can see that price has formed a short term 4 hour range.
Personally, since the US Dollar has had a little strength over the last few days I’m thinking we’re going up. But I’d be interested in a close of a 4 hour candle either above or below my range marked in yellow.
If you are in some sort of profit right now, and are undecided or unsure about what is going to happen next, I’d advise you to close out now, take what profit you have and move on to the next set up. It doesn’t matter what price does after you’ve closed out, even if it DOES go on to move in your original direction it doesn’t matter.
If you’re unsure, if your questioning the original reasoning that took you into the trade in the first place and your holding an overall profit (however small) then get out, take the money and be happy. A small profit is better than a loss.
My 2 cents and as I said, always happy to show exactly how little I know LOL!
Good Luck
I’m in the same boat. I have it at 96.91. I’m holding.