Tuesday, April 21, 2009

AUD JPY – Perfect place to take short trade

aud jpy 240 mins 21.04

Its bounced back sharply from support line and now testing resistance from neckline of head and shoulders pattern. Ideally, since we expect that the trend has turned for the overall market and are looking to take short positions, this area provides the most optimal point of entry – with resistance defined one knows where to place the stops. And if trade does move in the direction we anticipate (which it does in 80-90% times) the reward for taking a small amount of risk is huge. The potential risk:reward ratios in such trades often are 1:4-1:8