AUDJPY Ascending channels - lowering slope
Observation:
1 - Strong volatility at 80.259
2 - Price action keeps on testing dynamic resistance of 1st ascending channel (Steep slope)
3 - Price action now testing dynamic support of 1st ascending channel
4 - 1st breakout of dynamic support
5 - 2nd breakout of dynamic support (last kiss)
6 - Created the 2nd ascending channel (lower slope)
7 - created shortage at 85.351
Analysis:
If the price action moves and test dynamic resistance, it will eventually tries the dynamic support. There is higher probability that price action will test dynamic support because the ascending channel slope has decreased.
1 - Strong volatility at 80.259
2 - Price action keeps on testing dynamic resistance of 1st ascending channel (Steep slope)
3 - Price action now testing dynamic support of 1st ascending channel
4 - 1st breakout of dynamic support
5 - 2nd breakout of dynamic support (last kiss)
6 - Created the 2nd ascending channel (lower slope)
7 - created shortage at 85.351
Analysis:
If the price action moves and test dynamic resistance, it will eventually tries the dynamic support. There is higher probability that price action will test dynamic support because the ascending channel slope has decreased.
Comment:
Price action does not really follow exactly the lines we construct, it's just a tool to help us approximate the market flow. Better I short and put stop loss near above the dynamic resistance than to wait for the price to follow my prediction.
Comment:
But still price did follow the channels with a lower slope compare to the previous one.
Trade closed: target reached