EURJPY 5 Min.
Today after a bit of volatility price fell in a spike and channel pattern. Price hit the bottom of the channel and reflected up in 2 waves , a High 1, Low 1, High 2 Low 2. The High 2 broke the up channel so a long signal was worth looking for. The Low 2 was on measured move from the 5 min Pin which touched the 20MA but there was no really easy short entry there -as I said in the forum- so any bears would have been half hearted and tight with their stops. High 3 s at the right place are usually high probability trades. This low occurred at a SR , after a trend channel break at a measured move and entry for a high 3 long was breaking a mini trend line so this was a significant point therefore validating the High 3. That makes 5 hard signs for the trade and no deal breakers. I scalped out portions of the trade for profit along the way and at the time of writing have 10% of the position left in, SL is set 1 pip below the mini pull back that occurred just after entering the trade. So far 3% increase in net equity even if the remaining 10% stops out. I have set TP at 1 pip below the high of the spike of the spike and channel complex as price will aim to test the beginning of the channel then the beginning of the spike. In the end price did test the beginning of the channel at which point it also touched a trend channel so I closed the rest at 30 pips and 4.05% increase in net equity. As it happens price did go up and test the beginning of the spike to the pip and collapsed down.
Again classical Al Brooks price action.