Never Ever Give Up
Dragon or Snake - GU, UJ, GJ, EU, EJ
- #1,635
- Apr 12, 2018 3:19am Apr 12, 2018 3:19am
- Joined Dec 2015 | Status: Trader | 8,767 Posts
Do your homework, follow the footprints of smart money
- #1,637
- Apr 15, 2018 3:23pm Apr 15, 2018 3:23pm
- Joined Dec 2015 | Status: Trader | 8,767 Posts
Here's a top-down technical perspective on EURJPY.
On the weekly time frame, price action has moved away from a major ascending trendline (red) and is respecting an inner ascending trendline (black) which is operating as support. Last week, price action printed a rather weak bulish candlestick (with wicks on both ends). Bears asserted pressure to hinder the attempt of buls to take price beyond the horizontal resistance around the 132.850 area. As the order flow context since February has been largely influenced by bears, we may see them push price action southward, ar least to retest the support trendline (black). Nevertheless, we should not be unmindful of a resistance trendline (magenta) that may be appealing to bulls before they submit to a southward turnaround. Such a bullish intent may see a northward breach of the immediate horizontal resistance around 132.850 and a retest of the horizontal resistance around the 134.250 area; an area that is in confluence with the 61.8 Fib zone of the most recent downward swing from the February 2018 high.
Price action on the daily time frame is now around a resistance zone. Although a shooting-star like candlestick was printed last week Friday, the technicals are still disposed northward. We may see a pullback southward into the mean or the support trendline (blue) before price action continues northward. However, there are a few resistance areas which bulls will have to contend with: the horizontal resistance around the 134.250 area and the resistance trendline (magenta) seen on the weekly time frame.
On the H4 time frame, price action is operating in an ascending wedge (blue). Giving the context of the major trend (looking left), there is likely to be a bearish turnaround after the corrective phase. The last three sessions last Friday printed three bearish candlesticks; but the order flow context is largely under the bulls. Besides, a micro support trendline (chocolate) is still in play. Nevertheless, there are a few barriers for bulls to scale: wedge resistance trendline, horizontal resistance (minor resistance around 133.180; major resistance around 134.250) and resistance trendline (magenta). On the other hand, should the micro support trendline (chocolate) be broken down by bears, they will have to contend with the minor horizontal support (dark orange) around the 131.795 area before heading for the wedge support trendline. A breakdown of the support trendline on at least a four-hourly basis, with a retest and zone flip, is likely to give the impetus for a bearish continuation.
I may be wrong. Trade safe and prosper.
KP
On the weekly time frame, price action has moved away from a major ascending trendline (red) and is respecting an inner ascending trendline (black) which is operating as support. Last week, price action printed a rather weak bulish candlestick (with wicks on both ends). Bears asserted pressure to hinder the attempt of buls to take price beyond the horizontal resistance around the 132.850 area. As the order flow context since February has been largely influenced by bears, we may see them push price action southward, ar least to retest the support trendline (black). Nevertheless, we should not be unmindful of a resistance trendline (magenta) that may be appealing to bulls before they submit to a southward turnaround. Such a bullish intent may see a northward breach of the immediate horizontal resistance around 132.850 and a retest of the horizontal resistance around the 134.250 area; an area that is in confluence with the 61.8 Fib zone of the most recent downward swing from the February 2018 high.
Price action on the daily time frame is now around a resistance zone. Although a shooting-star like candlestick was printed last week Friday, the technicals are still disposed northward. We may see a pullback southward into the mean or the support trendline (blue) before price action continues northward. However, there are a few resistance areas which bulls will have to contend with: the horizontal resistance around the 134.250 area and the resistance trendline (magenta) seen on the weekly time frame.
On the H4 time frame, price action is operating in an ascending wedge (blue). Giving the context of the major trend (looking left), there is likely to be a bearish turnaround after the corrective phase. The last three sessions last Friday printed three bearish candlesticks; but the order flow context is largely under the bulls. Besides, a micro support trendline (chocolate) is still in play. Nevertheless, there are a few barriers for bulls to scale: wedge resistance trendline, horizontal resistance (minor resistance around 133.180; major resistance around 134.250) and resistance trendline (magenta). On the other hand, should the micro support trendline (chocolate) be broken down by bears, they will have to contend with the minor horizontal support (dark orange) around the 131.795 area before heading for the wedge support trendline. A breakdown of the support trendline on at least a four-hourly basis, with a retest and zone flip, is likely to give the impetus for a bearish continuation.
I may be wrong. Trade safe and prosper.
KP
Do your homework, follow the footprints of smart money
- #1,638
- Edited Apr 19, 2018 12:27am Apr 18, 2018 11:36pm | Edited Apr 19, 2018 12:27am
- Joined Nov 2009 | Status: Trader | 2,756 Posts
Exits == most important part of your strategy