The market reaction to the above JPY news brought the USD/JPY price within 2 pips of our stop at 118.06. We probably squeaked past. But in cases of increased volatility like this with an ambiguous wave count, the stop should be increased by about 15 pips or so. The price of 118.21 is the current correct place for a stop according to our system.
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Previous trade experiment:
Thursday December 14 at 10:00 ET
Trade Experiment #286 Sell USD/JPY at 117.73
Stop is 118.06
Target is 114.90
Risk is 37 pips
Reward is 279 pips
Reward : Risk ratio is 7.5 to 1
For research purposes only.
p.s. - USD/JPY rose to 117.86 and formed a far better formed 5 wave pattern on the final micro-wave up
_________________________________________________________
_________________________________________________________
Previous trade experiment:
Thursday December 14 at 10:00 ET
Trade Experiment #286 Sell USD/JPY at 117.73
Stop is 118.06
Target is 114.90
Risk is 37 pips
Reward is 279 pips
Reward : Risk ratio is 7.5 to 1
For research purposes only.
p.s. - USD/JPY rose to 117.86 and formed a far better formed 5 wave pattern on the final micro-wave up