This post shows you two ways to trade a channel with examples from the USD/JPY & AUD/USD. A trade wasn’t entered that day, but it still shows you the criteria for dealing with a fibonacci channel trade.
90 Day Forex Trading Bootcamp Watchlist Archive
It’s going to be another great week of trading. Today I’m watching the USD/JPY. The AUD/USD has a mixed signal with a possible downtrend emerging, but the daily trend is still up, so I don’t want to go against it.USD/JPY
It started with looking at the snapshot. Although the USD/JPY doesn’t have all the regions shaded, the charts show a more promising opportunity. The snapshot is merely a tool to track what’s happening with various timeframes and have a place to look for opportunities. Here’s the snapshot for today with the USD/JPY circled in red:
Then we start looking at the charts. First, the 1hr chart has a nice downward slope. Near the bottom, you’ll see that prices have flattened out into a small (but short lasting) consolidation: 
If we zoom into the 15-min charts we’ll see this consolidation in more detail: 
What to look for?
There’s two ways to enter this trade. We’re looking for short opportunities. You’ll also notice in the image above that there’s a tighter channel (thin blue lines) within the larger channel (thick red lines). To go short we’ll look at the 5-min trend. We’re looking for possible entries:- Prices move to top of channel, then bounce down. Ride the trade to the bottom of the channel going short.
- Prices move down and break the lower channel. When prices retrace back up to form an umbrella handle below the channel, get in and ride a fibonacci wave.
Sooner or later, prices will have to leave this channel. Since it’s an 80 pip channel, this could easily happen in a few hours once Tokyo opens at 11 pm GMT. I’ll be watching this casually all day…
rapidforex.com (Brian Campbell)
.
0 comments:
Post a Comment