Pair to watch February 2016 : EURJPY breakout will come soon?

i'am interested to write this currency because it show me a great opportunity trading setup.
Before we continue, i want to remind you that, i used MARS strategy.
MARS trading strategy is using weekly time frame, it's only use moving average as a filter, and the trade is trigger by breakout at the price level (it can be support or resistance).

Let's go back to see how is EURJPY price movement:

On Weekly time frame, the price is above the 200MA.
My MARS rules say that buy if the price is above the 200 Moving Average.
So our trading should be buy order, remember BUY order.

When to buy?
We must wait for breakout.
Okay, now i will remove all the moving average, and draw a price level  on the chart.

I place 2 yellow doted line, horizontal line (support level) and trend line.
We will wait until the price break one of these line.

Let combine the first chart and the second one, i will show you  something

After i combine it, it's look more clearly now, that it has a strong support level at the horizontal line, because the price is supported to by the 200 moving average.

My prediction is EURJPY will breakout through the trend line.

Enjoy your trade!

Forex Trading Strategies: MARS Trading Part 2. 200 Moving Average

When we speak about moving average (20MA, 50MA, 200MA) we talk about LINE.
What will happen if you draw a line?
You will have 2 side, it can right the line and left the line or you can get above the line and below the line.

The idea behind using moving average is to divide the price into above the line or below the line. Then we will used it for analyzing market sentiment.

Let see some example:
Remember i used weekly chart, This is GBPUSD price movement

Red doted line is my 200 Moving Average. Where is the price?
it's located below the line.

Let's come to the conclusion;
1. Only place buy order if the price is above the 200 Moving Average
2. Only place sell order if the price is below the 200 Moving Average

This rule is very simple, but when you managed to master it you will discover the secret forex trading.

Enjoy your trade