Welcome trading legends,
This time we’ll be trading the AUD/JPY asset using the signals from the ToolsTrades website and the IQ options broker. Be sure to stick to the end of the video as I’ll give you a special promo code for Forex Signals.
UD/JPY stays mildly positive, 0.04%, to 74.18, by the press time of early Friday in Asia. The risk barometer recently lost its allure considering the Japanese yen’s broad weakness. Recently contributing to the yen’s declines could be soft data and statements from the Japanese diplomats. Even so, markets remain worried as the latest developments concerning coronavirus have been serious.
The BOJ leader cited coronavirus concerns as the biggest issue to be discussed at this weekend’s G20 while showing readiness to act, likely not needed now. On the other hand, the economy minister directly talked about the yen weakness and said it’s because of the US economy’s strength.
On the other hand, coronavirus updates have been worrisome as Hubei registered an increase in infections and deaths while numbers from mainland China were also increased by the end of February 20. Elsewhere, developments concerning the disease from South Korea, Japan, Sydney, and Singapore are also negatively affecting the risk-tone.
That said, the US 10-year treasury yields remain on the back foot around 1.512% with the stocks in Japan erasing the early-day gains while those of China awaiting fresh clues.
Traders will now keep eyes on the coronavirus updates as well as Japan’s All Industry Activity Data for fresh impulse.
Considering the pair’s another pullback from 100/200-day SMA, the quote is likely declining towards 74.00, comprising 38.2% Fibonacci retracement of its declines from December 2019 to January 2020. On the upside, Meanwhile, a 200-day SMA level of 74.25 can act as nearby resistance ahead of the confluence of 100-day SMA and 50% Fibonacci retracement close to 74.50.
A potential Unified Gartley is on the chart. Detailed stats and trading levels are on this screenshot: https://prnt.sc/u1ks8v
Note:
1) The stats are only valid if you find patterns the same way as I do
2) The stats are only valid for this financial asset and this timeframe
3) WIn% = win probability; Loss%=loss probability. Keep in mind the Loss%. It is calculated by the formula: Loss%=100%-Win%. You should read it this way: "In this trade I have a Loss% probability to lose what I am risking. Can I accept this risk?"
4) Unified Gartley variations are distinguished by the B and the C ratios (this is UG59 because the B=0.4-0.5 and the C=0.8-0.9)
5) In the market research I tested 0.6XA, 0.7XA, 0.8XA, 0.9XA entries/0.9XA, 1.0XA, 1.1XA, 1.2XA stops/1RR, 1.5RR, 2RR, 2.5RR, 3RR targets - total num of trading levels combinations = 80. The combination on the chart is the one that has the best RR-expectancy with win% >= 50%
6) The pattern is supposed to be traded with limit orders with pending stops and target orders. If you wait for additional confirmation (like price action or indicator confluence) you are adding untested variables to the equation. The result is then unpredictable and you are gambling.
As you can see we made a nice profit in a short amount of time.
On the right side, you can see the promo code from ToolsTrades that you can use on their website in order to get more signals.
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In the next video we’ll trade some more and hopefully earn more.
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