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 dropped like a rock last week due to global risk aversion mainly due to the fact that US financial firms keep announcing ginormous credit-related losses. Will momentum continue to drive the pair lower or is this merely a panic sell-off?
Who knows but I like to buy get in when it's cheap and this is exactly what my technicals are telling me. A doji has formed as the pair attempted to test the 109 level. A possible sign that sellers are becoming exhausted and weakening. I spot bullish divergence with price making a lower low but the oscillator leveling off. There is also the potential for verbal intervention from Japanese officials when the dollar is below the 110.0 level since their exports (like Sony PS3s) become more and more expensive and hence less attractive for foreign buyers.
I'm going to buy at 109.80. My stop loss (SL) will be 108.80, below support of 109.00. My profit target (PT) will be 112.65, my marked resistance. Any trade adjustments will be posted in my comments section below.
Buy USD/JPY @ 109.80 | SL: 108.80 | PT: 112.65
