DislikedSo here is my first analysis: USDJPY Weekly: Trend is up - Supply being removed, demand being respected Momentum is up We are high in the curve and are testing a non-fresh supply. We have to wait for confirmation to take a short for numerous reasons: Trade will be against curve TF trend and/or momentum We are testing a non-fresh supply Ideally I would have liked to have seen a higher penetration of the supply before a confirmation short is taken {image} Daily: Ranging between zones We have hit non-fresh supply, no longs allowed, need confirmation...Ignored
I have decided to remove my sell order for this pair as we are retesting the non-fresh weekly supply for the 5th time. I want to see that sellers are stronger than buyers before I take a short trade, and being the 5th retest, I would like to see this on the weekly as opposed to my entry TF (4h), especially when the 4th retest didnt have a large move away. On my weekly chart below I have marked out a buy area (grey) that is of interest for me. Before I consider a looking for sells, I would like to see this area removed and hopefully the momentum line at the same time. This then would indicate to me that the sellers are taking control. Also, a zone's strength diminishes with every retest and seeing that this is the 5th time back to this zone, it may be removed. Therefore with all this in mind, I believe it is a low probability trade to take at this present time when only the 4h momentum line has been broken.