Don’t you just love it when you look back and see that you played your cards right? Last week, EUR/JPY dished out two solid winners, and I was able to bag one of them!
Before we begin, check out my introductory post on the Weekly Winner! Done? Awesome, let’s get started!
September 26 to 30, 2011: EUR/JPY Price Action Review
EUR/JPY started the week off on a low note, falling quickly to test the PWL. But just as quickly as it had fallen, it popped right up, breaking past the WO to test the top WATR/ 105.00 MaPs.
It pretty much stayed above the WO the entire week as positive votes from Slovenia and Germany in favor of the expansion of the European Financial Stability Fund kept it afloat. It traded within a 150-pip range, finding support at the WO and resistance in the top WATR/ 105.00 MaPs area.
Now to get to the good part – last week’s money makers!
The first valid setup came in the form of a bounce off the PWL. With Stochastic in oversold territory and price forming a super sexy hammer, we had the green light to buy, buy, buy! We only needed a 50-pip stop, placed right below the WATR to take advantage of this sweet setup.
Had we taken profit at the WO, we would’ve taken home a 2:1 winner! On the other hand, had we taken profit a bit higher, perhaps at the top WATR, our reward-to-risk ratio would’ve increased to about 5:1! Dang, son! You’d be done for the week if you had caught that bad boy!
Unfortunately, I’m not too fond of entering trades so early in the week as I like to wait for intraweek trends to develop. Luckily, another sweet setup materialized midweek!
After tapping the top WATR/ 105.00 MaPs, price came back down to test the WO/ 50% Fib level. Entering at the WO with a 50-pip stop and aiming for the area just below the top WATR/ 105.00 MaPs would’ve been a solid way to bag a 3:1 trade.
Luckily, I spotted this setup as it was forming, and so I went long and bagged myself a pretty penny for my troubles. Check out my simple EUR/JPY trade to see exactly how it went!
Needless to say, it feels great knowing I was able to catch one of last week’s best trades. Hopefully, I’ll be able to do the same this week and start a new winning streak! Peace out, guys!