EURJPY ‘Support Broken’ Trade Analysis
Setup: Support Broken
Order: Short Market Order (127.8750)
Trade Result: Failed (nearby long-term support at 127.87)
After an alert on a BROKEN SUPPORT, I went short at 127.88. Later closed the trade at 128.17 (Nearby long-term support at 127.87). When the prices break a support, and there’s weakness before, it means the smart money is expecting lower prices, and that’s why this setup works very well. Unfortunately, in this specific case, it didn’t work. It won’t always work but in the long term, this is a profitable setup.
Disclaimer: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, these trades were taken by our proprietary robot that takes both positive and negative trades in a simulated setting for purely educational purposes.