Here are a couple of recent trades on USD/JPY. The hourly chart is shown. The result was a net profit.
Though one trade was twice the size it can simply be viewed as + 120 PIPS
As we can see below this pair has been making some nice moves.
The same type of trading can be done on other instruments, such as the DOW (US30)
It’s important to understand PIP Value and margin for any instrument as they can vary.
On this Long Trade, we don’t have the best entry, however there is a stop at break-even and an aggressive target from here would be about 70 PIPS. The stop is not in an ideal place, and therefore the chances are pretty good that it will be stopped out unless price starts moving higher as we approach the closing of the U.S. markets.
Update: This trade was manually closed for +14 PIPS
This was actually two separate short trades.
The first was exited with a small loss. Looking back, it would have been nice to get short earlier on the 2nd trade.
We still netted 30 pips though.
Keep in mind the spread has been about 5 pips.
From a price action perspective we might say there was a sort of failed breakout.
Then the price fell to an area where there happens to be a 50 period simple moving average.
Charts101 Trading 