Trading EURJPY forex pair with multiple timeframe confirmations provide the highest probabilities regardless of whether a trader chooses spot forex, binary options, or spreads. Here is an example.
Trading EURJPY Forex Pair
The chart below shows all three timeframes for the EURJPY (240 minute, 60 minute and 15 minute). To expand the chart, simply click on it.
The 240 minute chart shows that price is at an ATR (average true range stop indicated by the plus sign), tried to break through but was unable to and the close was very close to the bottom of the bar.
The 60 minute shows how price tested the Congestion Dot (gray dot) and tried to break thru but, again, could not. Additionally, there was volume divergence on the highs using the TradersHelpDesk Directional Volume indicator and the TradersHelpDesk Stochastics showed trend divergence indicating downward movement was ahead.
Then the 15 minute chart forms a magenta peak, indicating a retracement down.
Three timeframes that indicate downward movement.
Trading EURJPY Forex Pair – Spot or Binaries
The trader could have entered the spot forex market using an offset of the high on the 15 minute chart (about a 15 pip stop) or the trader could have chosen to enter multiple binary options using ATM or OTM options, or chosen to use the spreads or a combination of all three. Since this trade had multiple confirmations across multiple timeframes, it should produce substantial profits regardless of which vehicle the trader used to enter the trades.
Reading multiple timeframes can be challenging for new traders, which is why I dedicate so much time to it at the 2 day seminars I have. The better traders are able to use this approach, the better they are able to control losses and pick the best trade setups.
Also, when trading EURJPY Forex Pair notice how each indicator had a purpose. The magenta peak on the TradersHelpDesk ADX indicators indicates that a retracement should happen. Where should the retracement go? At least to the ATR and possibly more if confirmed by the higher timeframe. The TradersHelpDesk Stochastics indicator identifies when the trend is weakening and also shows hidden divergence. The TradersHelpDesk Directional Volume indicator shows whether buyers or sellers are strengthening or weakening. This is where they are all included in the TradersHelpDesk Diamond and Silver Package — these indicators work together to produce the full picture for the trader.