JPN225 Finding Support in a Bullish Trend
Very rarely do you open a chart and find an entry right away. Good trades have to set up so as to allow as many traders to get on board before the train leaves. This means WAITING is the name of the game in this game of trading the financial markets. You have to WAIT for a trade to come to you rather than you going around looking for a trade. Once you grasp this way of thinking, at some point, you will get to realise how easy trading actually is and fun too. You simply need to WAIT. No effort required on your part. Simply WAIT.
We have a not so good set up that is brewing on the JPN225 , not so good because price has lost momentum to hit either Fib 27.2 or Fib 138.2 before retracing. But this is normal as the high at Fib 100 has the power to force a retracement before price heads for the above two Fibs. This is the pattern that normally gives you your before a resumption. We have had a good retracement by that last long candle to the downside and price is currently finding some support on the low left by this long candle. If this low holds its ground, then our STOP will be @ 23803, our TARGET will be at @ 24197, which is a Fib 161.8 level given a Fib 50.0 retracement support. Now the WAITING game starts. We need to WAIT for a candle that closes well clear of our counter and buy the candle that follows this candle. This is all that is needed. WAITING. If price decides to go for a deeper retracement, which means heading towards Fib 38.2 or Fib 27.2, fingers crossed this will happen before we get the counter , saving us from getting burnt. I hope this helps. Happy trading at all times.