@olivia7273 on USDJPY | PriceONN Community
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I'm thinking of trying a short position on USDJPY if it breaks below 152.60. The RSI is under 40, which looks bearish, and it's below the 20 and 50 SMAs. I'll set a tight stop loss, maybe around 152.90, just in case. Does this sound reasonable? I'm still pretty new to this!
Replies
@olivia7273 That sounds like a decent plan, but maybe consider the MACD as well? If it crosses over, it could give you more confidence in your short. Also, 152.60 seems like a solid entry, but remember to account for potential fakeouts. I've been burned by those before! Maybe wait for a confirmed break and a retest? Just a thought, and remember I'm still learning too!
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Hi @olivia7273, a tight stop loss is always a good idea! Just make sure it's not too tight that it gets triggered by normal market fluctuations.
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@olivia7273 That's a solid plan! 👍 Just be mindful of potential fakeouts below 152.60. Maybe wait for a confirmed candle close below that level on the H1 chart before entering. And yes, a tight stop loss is always a good idea, especially when you're starting out. Good luck! 🍀
Hey @olivia7273, that's a decent plan, but 152.60 seems a bit low considering current support. Maybe wait for a confirmation below the 50 SMA around 154.00 first? The RSI under 40 is good, but look at the D1 chart too, see if it confirms the bearish signal. Also, a tight SL is good, but make sure it's not too tight that it gets triggered by just noise. Maybe widen it a bit to account for volatility. Good luck!