EURJPY Trade Analysis

System C's EURJPY trade reason



Gold arrow: Entry price

Red arrow: Stop loss price

Green arrow: Take profit price


Trade Setup:

EURJPY formed a major channel in the hour 1 and hour 4 timeframe.

Trade confirmation:

Price touched the top of our channel.


Trade reasons:

1) price touched the top channel

2) Good risk-reward ratio ( 1 - 1.69 )

3) Price also touched a strong Resistance



Take profit reasons:


1) Take profit level was set at the half of the channel to not overestimate market trend.


Stop loss reasons:

1) Stop loss level was set to be above the top of the previous high wick.

2) If price breaks the wick, it might be a breakout of a new trend.