I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Buy USD/JPY
This pair had been trading sideways between 117.50 and 118.35 for several days. It seems to have finally broken out of the range looking to test the 119 handle. On the chart below, I've labeled the 85 pip range I felt the pair was stuck in. Now that it has broken out, I feel the bullish move will be at least as big as the sideways channel.
On the 1-hour chart, it looks like this pair will retrace before resuming its uptrend. I feel the .382 Fibonacci retracement level is a good "dip" to buy. It is right at 118.50 which is a nice psychological support level.
I'm going to buy this baby at 118.50. My stop loss (SL) will be 118.20, which is below the 118.35 support drawn on the 4-hour chart. My profit target (PT) will be 119.20, based on my channel breakout calculations from above.
Buy USD/JPY @ 118.50 | SL: 118.20 | PT: 119.20
