tradingjournal101_

A pullback to the golden ratio or too much momentum? EDUCATION!

FX:USDJPY   U.S. Dollar / Japanese Yen
I see too many possibilities with this trade. One year ago I would have gone with a sell no matter what right now. However now, learning how to use volume and a little more about the banks this may have been perfect for them to ready their positions to take it up, especially with the amount of momentum. Below will be some notable possibilities that I see. I want to know which one is best.

Also if anyone sees this post, let me know which one and why. It will help us all become better traders.
Comment:
Buy possibility #1 (most plausible)
Price came to this level and rejected off it perfectly. A similar movement can be seen to the left, which could be followed with the way the market is moving at the moment with such high volume
Comment:
Buy #2 (provides the best entry to ride the trade)
Price has come back into this level but it would be good if it went back down to re-test as support again for a perfect style trade. This could either be taken down to the trendline (which could break since there are several touches or bounce off) or all the way up, copying the move from before on the left.
Comment:
Sell #1 (trendline bounce)
Price has recently broken through the support level which has had 3 previous touches and moved up (break of support was expected from personal trading plan). Now that lower lows and lower highs are being made, it is time for another one. Therefore there are two targets: the support zone that it broke through just in case it wants to re-test as support again or make another lower low.
Comment:
Sell #2 (Fibonacci)
The golden 61.8 has been reached with a lower low made finally. Since this is a sign of a bearish market (especially with such an impulse move to the downside) along with the break of any possible trend upwards, this can only mean that the volume is for it to push here for a huge sell-off. Also, 61.8 meets weekly level.

Only downside to this is the SL positioning (I would personally put it above the high but oh well, let's see.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.