December 8 review of symbol="OANDA:USDJPY" 112.75 earlier break
Bailing today could be a classic beginners mistake. I previously estimated that it would go back up to 112.75 after the 1st of December failure to hold the new level it dropped to. We are now at 113.25, which is 50 pips away. This difference should have kicked out all traders with stop losses around 112.75. Next is to wait for a confirmation of a new drop for re-entry and optionally scalp long in between for the experienced trader.
I have not done this myself but I can image some of us made a nice profit out of it. Risk properly managed a second and third try are acceptable on a projected profit of 500+ pips, as 20-30% of the profit would cover the risk. Loss exists as soon the drop doesn't keep the price below 112.25 with 2 tries, 111.25 with 3 tries, etc. I decide to go for try nr2 and perhaps try nr 3 also. Of course you have to decide for yourself.
I have not done this myself but I can image some of us made a nice profit out of it. Risk properly managed a second and third try are acceptable on a projected profit of 500+ pips, as 20-30% of the profit would cover the risk. Loss exists as soon the drop doesn't keep the price below 112.25 with 2 tries, 111.25 with 3 tries, etc. I decide to go for try nr2 and perhaps try nr 3 also. Of course you have to decide for yourself.
Trade active:
Downtrend started December 8 2.03am UTC
