News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Libya's Haftar says the army has decided to resume output of oil #OOTT
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.24%, while traders in NZD/USD are at opposite extremes with 67.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/KhSpML2e1A
  • 🇷🇺 Interest Rate Decision Actual: 4.25% Expected: 4.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2020-09-18
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: 0.51% Silver: 0.47% Oil - US Crude: 0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/neu57eYQAY
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.44% 🇯🇵JPY: 0.43% 🇬🇧GBP: 0.15% 🇨🇭CHF: -0.01% 🇪🇺EUR: -0.03% 🇦🇺AUD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/H9AOMIjOnG
  • Heads Up:🇷🇺 Interest Rate Decision due at 10:30 GMT (15min) Expected: 4.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2020-09-18
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/0sMIVrdslY
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: 0.10% Germany 30: -0.03% Wall Street: -0.09% FTSE 100: -0.27% France 40: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PmpWrAsueT
  • EU Bank regulators are moving closer to end ban of dividends next year
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/gaUllv1kra
EURJPY Traders Benefit From Trendlines

EURJPY Traders Benefit From Trendlines

2013-06-21 19:00:00
Walker England, Forex Trading Instructor
Share:

Article Summary: As Yen crosses decline traders will look for opportunities to sell with the market. Today we will review trading the EURJPY using an active trendline.

Learning how to identify trendlines is an important price action tool that all technical traders should master. These lines of support and resistance graphically represent areas of supply and demand as traders enter and exit the market at specific points. Understanding these points can allow a trader to create an easy to use, all in one trading plan. So lets begin by looking at an example of a current trendline established on the EURJPY currency pair.

Today we are going to examine an ongoing trendline on the EURJPY 4Hour chart. Pictured below, we can see price declining on the pair with several price peaks being connected. To draw this trendline we need to begin with at least two common points on the chart forming a lower high as price decrease. Once connected, we will now have a line on our chart acting as resistance. In a downtrend resistance will work as a price ceiling which will be the basis for our trading plan.

Learn Forex –EURJPY Trendline

EURJPY_Traders_Benefit_From_Trendlines_body_Picture_4.png, EURJPY Traders Benefit From Trendlines

(Created using FXCM’s Marketscope 2.0 charts)

Now that we have identified a trendline, traders should prepare to enter the market in the direction of the trend. Since our trendline is declining, this means traders should look to sell towards lower lows. From this point finding entries becomes very straight forward. New sell entries can be positioned every time price touches overhead resistance. Below we can see an example of where a trader would have potentially sold the market as price moved to touch our declining trendline.

Once an entry is planned, managing risk with a stop loss should be our next consideration. Since the EURJPY is currently declining, traders can place their stop orders above our current trendline. In the event that price moves above the line, our current analysis would be invalidated and all trades should be exited. Since trading a downtrend is reliant on the creation of lower lows, limits can also be placed under the previous low to create a positive Risk / Reward ratio.

Learn Forex –Gold Risk/Reward Strategy

EURJPY_Traders_Benefit_From_Trendlines_body_Picture_7.png, EURJPY Traders Benefit From Trendlines

(Created using FXCM’s Marketscope 2.0 charts)

One final great point about trading trendlines is that the trading plan for entering into the market is easily repeated! In a downtrend like the EURJPY above, once a trendline is established, new sell positions can be taken each time price approaches resistance. This opinion would only be invalidated upon price breaking out through our trendline and closing above current resistance.

---Written by Walker England, Trading Instructor

To contact Walker, emailinstructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HEREand enter in your email information

New to the FX market? Save hours in figuring out what FOREX trading is all about.

Take this free 20 minute “New to FX” course presented by DailyFX Education. In the course, you will learn about the basics of a FOREX transaction, what leverage is, and how to determine an appropriate amount of leverage for your trading.

Register HERE to start your FOREX learning now!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES