Last Thursday night, we mentioned in Faceless Trader Ground Zero facebook group that there was a strong reversal that called for all the bears to cover their shorts.
$SPX500 staged a fierce rebound such as V reversal from 2050 to 2070 and we closed all shorts and went long oil as well. It bounced from 46 and is currently at 48.80; I need to just hold on to my trades longer. I keep taking small gains! It’s a wrong habit! Even if it’s a gain, I need to hold longer and trail.
The oil rally coincided with the very strong reversal in SPX500. The sentiment really shifted into risk on mode last Thursday evening 😀
Nevertheless, The good thing is we have a trading setup. Let’s look at USDJPY 😀
I went long as well last Friday, and closed all positions for the weekend. Day trade lang kasi iniisip ko pero maganda risk reward nitong usdjpy ngayon.
Look at Weekly pattern.
I love trading gaps. This is a nice confirmation of strength on the gap up and will go long on the gap fill residing between 104-104.33
We enter some daily longs.
104.30 preferred entry though if within one hour I don’t get hit, I’ll move it to 104.50; doesn’t matter since risk reward pay off is nice.
My stop loss at 103.5 (the 886 fibo identified on weekly and the fibo extension on the daily -I didn’t draw it here but its a 1.382 extension to the downside move which I believe is an exhaustion.)
If I get really lucky this week, I’ll modify my reward from 106.50 to a higher Target Price. 😀
See you guys!
- Faceless Trader
To consistent trading!