07 Jul USD JPY Swing Short Preview; 7th July 2013
Following my earlier post updating on recent trading I thought I’d post a quick snap shot of the USD:JPY channel back test I’m waiting for.
Its not too often I post such set-ups too far in advance because there simply isn’t enough on the chart at this early stage to support the trade idea but in short I’m simply looking to see how price reacts if and when it reaches the underside of the old channel with a view to entering a swing short.
What you’ll often see on such set-ups is a pip-perfect back test that instantly finds sellers, but some days later price will rally again and actually briefly break back inside the channel stopping out all those early positions. It is after this second back test that the real sell off will begin.
Bear this in mind when setting your stop loss levels on such trades.