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AUD:JPY - Strategy Update

CMC Markets

Hi,

The AUD:JPY triangle set up I posted yesterday is close to breaking to the downside.

I thought it may be useful to post some brief thoughts on an approach to entry and exit levels for readers interested in following this set up.

  • The entry set up applies a filter and waits for price to clear the triangle support ( in this case by 25-30 pips) before selling
  • The initial stop is just behind the triangle resistance.
  • If price makes 61.8% of the distance from the break point to the profit objective, a one candle trailing stop is put in place. This is initially placed just behind the high of the candle reaching the trigger level. Once a candle makes a low below the 61.8% level the stop is left at that level
  • The profit target projects the height of the triangle from the break out point. A small price filter is applied to this projection

Cheers

Ric


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