AGGRESSIVE EURJPY PLAN:
1. Market and Instrument Selection:
● Trade EUR/JPY during the Asian session when liquidity and volatility are
relatively stable.
● Avoid major economic news releases to minimize potential volatility.
2. Timeframe Selection:
● Utilize the 5-minute chart for precise entries and quick trade management.
● Refer to the 1-hour chart for identifying key support/resistance levels and
overall market bias.
3. Bias and Confirmation:
● Determine the bias using the 1-hour chart, considering the overall trend
and key support/resistance levels.
● Confirm the bias with price action patterns and momentum indicators on
the 5-minute chart.
4. Entry Strategy:
● Look for high-quality price action setups such as inverted hammers,
hanging man patterns, engulfing patterns, and pin bars.
● Focus on setups that align with the bias and occur near key
support/resistance levels or trendline breaks.
● Prioritize setups that show strong confirmation signals, such as
momentum divergence or volume spikes.
5. Stop-loss Placement:
● Set the stop-loss level between 6 pips and 15 pips, considering recent
swing highs/lows, support/resistance levels, or the opposite side of the
pattern.
● Adjust the stop-loss level based on price action and structure to protect
against invalidation of the trade idea.
6. Take Profit:
● Aim for a minimum risk-to-reward ratio of 1:6 or higher to achieve high RR.
● Identify potential profit targets based on key support/resistance levels,
Fibonacci extensions, or previous swing highs/lows.
● Consider trailing stop-loss orders to capture additional profits if the price
continues favorably.
7. Trade Management:
● Monitor the trade closely, observing price action and potential signs of
reversals or continuations.
● Consider closing partial positions at specific profit targets to secure gains
while allowing the remaining portion to run.
● Implement a trailing stop-loss order to protect profits and capture larger
moves.
8. Risk Management:
● Determine the position size based on the risk per trade and the distance to
the stop-loss level.
● As an aggressive trader, consider risking a smaller percentage of your
trading capital per trade (e.g., 0.5% to 1%).
● Adhere to a maximum daily risk limit (e.g., 2-3% of your trading capital)
and stop trading for the day after reaching the limit or encountering two
consecutive losses.
9. Trade Exits:
● Exit the trade when the price reaches the predetermined take-profit level.
● Exit the trade if the price hits the stop-loss level or if the trade setup is
invalidated.
● Consider closing trades at the end of the Asian session to avoid overnight
risks.
10. Review and Analysis:
● Regularly review your trades, analyze the outcomes, and keep a trading
journal to record details.
● Assess the performance of your trades, identify strengths, weaknesses,
and areas for improvement.
● Continuously adapt and refine your trading plan based on your experience
and market conditions.
Remember to practice your trading plan thoroughly, gradually increase your position
sizes as you gain confidence, and adjust the plan to suit your risk tolerance and
preferences. Always adapt and refine your strategy based on your own observations and
feedback from your trading experiences.