USDJPY
- Currency Pair: USDJPY
- Position: sell
- Lot Size: 0.02
- Risk/Reward Ratio: 1.60
- Profit/Loss: +$14.48
Entry Rationale
- A downtrend is forming on the 4-hour chart, and it appears to be in the third wave of an Elliott Wave decline.
- The price has risen up to the area near the last swing high on the 4-hour chart.
- The 21-period moving average on the 4-hour chart is aligning with that level.
Explained in detail in the market analysis article below↓
Entry Point, TP and SL Level
4h
1h
5m
I placed a pending sell order at the 4-hour chart’s recent swing high line, and it was triggered when the price reached that level.
The planned take-profit level was just before the recent low on the 4-hour chart, and if the downtrend looked likely to continue, then around just before the last swing low on the daily chart.
The stop-loss was set for when the price clearly broke above the last swing high on the 4-hour chart.
Since there was a possibility of another rebound at the recent low line on the 4-hour chart, I took profit there.
Trade Review
This trade was also entered using a pending order, without paying too much attention to the most recent price action.
After entering, the price moved down almost immediately without holding an unrealized loss, so I moved the stop-loss to the entry level.
Later, the price reached the first take-profit target at the recent low on the 4-hour chart, but I didn’t close the position as I expected further downside.
The price then rose back near the entry level, which was mentally unpleasant, but it fell again toward the recent low on the 4-hour chart, where I finally took profit.
It took about 38 hours from entry to closing the position, which was a bit stressful, but in the end I was able to secure a profit of about 100 pips.
