On 2/13 I started a new theme, which is FTD (Free Trade Day). My plans are to share a “Free Trade” that looks to have a nice Risk/Reward setup.
The first FTD was Freeport McMoran (FCX), which has broken out to the upside since the post, pushing up around 10% of late. (FCX Free Trade) If you own FCX due to the prior FTD, the pattern suggests to bring up stops to protect gains
Today’s FTD is the Japan ETF EWJ.
It is attempting an upside breakout from a sideways pattern. The Power of the Pattern would suggest a purchase here with a stop just below sideways channel support, total downside risk on the trade is around 3%.
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The Choppiness Index on the daily chart of EWJ is exhausted. I would wait until it’s charged back up before entering the trade. The reason is that at this point, it’s most likely to continue trading sideways for an extended period or move downward.
Than you for the free trade day, I’m not in the market right now ( broke)’but I’m using it to get an education. It shows me what your looking at and why your pulling the trigger. Thank you