In my previous post on this pair (see Related ideas: "USDJPY: Ending Diagonal + Crab = Reversal To Trend Continuation"), I noted that there was a POTENTIAL Crab pattern setting up that also complemented my wave count nicely as well as completing near a MAJOR STRUCTURE Zone. Well, that crab has now completed. MY TRADE PLAN I'm taking this SHORT trade opportunity as an ending to the wave 4 correction and as a start to the wave 5 down which would be a trend continuation play. However, I'm using this crab as more of a trend continuation signal. So instead of taking profit at TP1 and TP2, I'll be looking to hold this trade SHORT for a longer time. However, I will closely monitor it as prices approach the TP1 and TP2 for the crab pattern to watch for signs of any reversals.
*DISCLAIMER: Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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when not taking specific targets, how, or what approach do you use to let a target run? Is it similiar to your entry approach? How you mention using fibs and wave analysis or something more basic?
EverythingForex
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Each trade has it's own "personality" per se. If you have been following my posts, you know that I am VERY BEARISH on USDJPY for the long-term. YOu would also know that patterns, though a very important part of my trading system, is not the end all and be all of it. My main guide is wave counts. So when my wave counts are telling me that we are in for a SIGNIFICANT decline, I will take a more "sell/buy and hold" strategy and position trade. Which is what this trade is: a position trade. Do you ever wish you could've "caught a super-trend"? This is what this trade is about. Catching a "super trend". Yes, in trying to do so, there are risks. The biggest one being that the "super trend" never happens, prices reverse again and go back up and take me out for a loss. It happens. It happens A LOT. But trading, more importantly, SUCCESSFUL trading is about managing your risks vs. rewards. In this case, my risks are small compared to the potential rewards of letting the trade ride as far as my wave counts tell me is possible., Nad it's telling me that there is a good potential for a "super trend" to occur here. How do I know when it will end? Where to take profits? This requires constant monitoring and analyzing. This is not a simple mechanical take profit trade as in many of my trades. Will I take profit at the TP1 and Tp2 of the crab? Maybe. I'll just wait and see what the price action and my wave counts are telling me. GL!