Short 0.015 CADJPY @ 81.78, Stop 82.00
Edit: I was stopped out overnight for a loss of 0.37%.
I am taking a dabble at shorting oil via CAD/JPY. Here are where things stand.
CAD/JPY
USD/CAD
Crude Oil
CAD/JPY is forming a wedge on the 4 hour chart. I am shorting it at resistance and in-line with the downtrend. A break below 81.50 would signal a confirmation for even lower prices.
Risk is about 0.4% of account with a CAD$15,000 position.
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Hi
I dont two things something with this entry. There are 2 possible entries in this case ( in my opinion of course ;)) but only one place to set the stoploss (also in my opinion ;)).
Entries:
Number 1. either like you did it, just at the top, without any confirmation
Number 2. wait for a confirmation candle which shows you that the momentum has shifted.
stoploss: of course just outside the wedge. if the price leaves the wedge in the wrong direction it has failed. no need to stay inside longer, even consider a long position.
advantage entry no1: stoploss can be set closer
disadvantantage entry no1: no conformation (lesser probability)
advantage entry no2: confirmation that momentum has shifted (higher probability)
disadvantage entry no2: stoploss must be set farther away
hope that helps :)
sorry, the first sentence should be: I dont understand two things with this entry.
Oh, this was a while ago. I have since taken a more quantitative approach. Brings back memory.