Extreme trader sentiment points to possible EURJPY downtrend
The Trend Follower Strategy has just sold EURJPY at 126.24. The system recommends entering this trade at any price between 126.096 and 126.384. The signal was issued because our Speculative Sentiment Index is extremely negative, with a value of 1.561. This suggests that the EURJPY could be trending downwards.The 14-period on a is 0.576, so the stop loss has been set at 126.816. This stop loss order is a trailing stop that will move down as the market moves down. There is no profit target for this strategy. We expect to be closed by the stop loss.Trend Follower is a trend trading strategy that aims to buy and hold rising currency pairs and to sell short and hold falling currency pairs. The strategy looks to buy when the Speculative Sentiment Index is below -1.5, and looks to short when it is above +1.5.
Signal ID: 74437
Time Issued: Tuesday, 22 December 2020 10:00:04 GMT
Entry: 126.096 – 126.384
Stop Loss: 126.816
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