CHFJPY: Profitable Short Trades against the Main Trend
In this post, I wrote about selling opportunities at the resistance zone. Today, I would like to share with you the exact trading signals, which we could use in the direction of the daily chart.
The 1st short trade we could open following a bearish divergence. It is a trend reversal signal, and I posted a lot of examples using this setup. It is rather simple, and it can be used in different timeframes, starting from 5m charts, and different markets. Divergences provide us a solid reason to trade against the main trend. When the price is at the support or resistance zone, we shouldn't ignore such trade opportunities.
As you can see above, the short trade could give us a very good profit.
The entry point had to be below the local uptrend line with stop orders above the local swing high. The profit target we could place at SMA200.
The 2ns short trade came from a breakout below SMA200. We could use such a trend reversal signal with an entry point below the local swing low and stop orders above the local swing high. The profit target for the short trade should be based on risk-reward ration 1:2 or 1:3.
The breakout above or below MAs with periods like 100, 200 give trend reversal signals as well. We can use such signals for opening trades in the direction of a new trend. The same setup can be used in different timeframes and markets.
If you learn these two simple setups, you will be able to trade by yourself in any market you want. Don't expect that you will be in profit all the time as it is impossible in real trading. But with the proper money management and the discipline, such a trading approach will be able to provide you income in the distance.
Any questions, you are welcome!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The 1st short trade we could open following a bearish divergence. It is a trend reversal signal, and I posted a lot of examples using this setup. It is rather simple, and it can be used in different timeframes, starting from 5m charts, and different markets. Divergences provide us a solid reason to trade against the main trend. When the price is at the support or resistance zone, we shouldn't ignore such trade opportunities.
As you can see above, the short trade could give us a very good profit.
The entry point had to be below the local uptrend line with stop orders above the local swing high. The profit target we could place at SMA200.
The 2ns short trade came from a breakout below SMA200. We could use such a trend reversal signal with an entry point below the local swing low and stop orders above the local swing high. The profit target for the short trade should be based on risk-reward ration 1:2 or 1:3.
The breakout above or below MAs with periods like 100, 200 give trend reversal signals as well. We can use such signals for opening trades in the direction of a new trend. The same setup can be used in different timeframes and markets.
If you learn these two simple setups, you will be able to trade by yourself in any market you want. Don't expect that you will be in profit all the time as it is impossible in real trading. But with the proper money management and the discipline, such a trading approach will be able to provide you income in the distance.
Any questions, you are welcome!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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