AUD/JPY Signal update

Well if your in it for quick profits the doji at resistance signal today has already offered some nice pips! Todays candle has already been up over 100 pips since open!

Again there are many ways to have played this signal. You might have put a SL at the bottom of the doji and taken profit at a 1:1 risk to reward ratio. You could still be on the sidelines to see if todays candle gives confirmation to the reversal by closing above the doji high. You might have simply entered at market with a tight SL and may have now moved it to break-even or maybe just covered half your risk looking for price action to continue moving long allowing your trade to run.

However you may have played today's signal what is important to take notice of here is how market signals are seen by the many participants that make up the market itself. What I mean by this is if you are aware of what the market in general is looking for you should be able to get in the market in the right direction. Today's signal was simple but powerful - a doji candle at resistance. You now have good reason to study up a bit on candlestick reversal patterns as well as simple support and resistance concepts.

If you did not make pips off this signal don't dispare! For instance I did not trade this signal today because it is simply not the right time for me to expose my account to more risk. I have open positions that I am waiting to cover before I get into any more trades - that's just me. There will be more signals! As I said in my last post a strong way to play the doji at resistance is to wait for conformation - which is what we MAY get if the close of today's candle is above the doji high. Does that mean price will continue to the longside? Nope!!! But again it might just be considered a strong signal by many market participants and you've seen the power of market psychology at work today!

This is not a trade recommendation. If you are trading please know your risk or use a demo account to gain understanding.