EURJPY short ANALYSIS EXPLANED

26 Okt 2019

Here you can see a very good example of H&S pattern, Price formed good right shoulder, by price breaking out on M30 and then falling back down immediately creating that H1 rejection candle. Price fell down through light blue region and then there was good resistance structure above price. I entered my first position, price went up and rejected that light blue region perfectly, came down with a move and the retested the next broken support as to where I entered with a sell limit and placed the stop area just above resistance area ,as can see price came very close to SL. Price made downwards move. !st position is risk free, 2nd one not yet, depending on your risk management preference. A good risk management tactic would be to put position 1 on risk free and half the stoploss area of position 2 to minimize risk to 0.5%. Or else keep 2nd position on full 1% risk and this is still good as floating P/L is more than 1% and possible return is more than 6% for 1% risk ATM.