AUDJPY - Potential Short Sell Trade Opportunity Set Up

OANDA:AUDJPY   Australian Dollar / Japanese Yen
Taking a look at the intraday price action on AUDJPY we have seen a potential Sell trading opportunity present itself.

As you can see from the 1 Hour chart, we have a liquidity gap drive lower on the 21st September 2020 around the 76.32 level marked with an orange arrow.

This level could have additional order flow resting here as the sellers who originally drove price lower could look to protect their positions.

With that said, we also can see a potential bearish 3 Drive pattern getting created with the first 2 drives already developed.

Convergence is key in increasing your trading probability so if we can see price rise around the 76.32 level again and also converge with the 3rd drive of the 3 drive pattern together, this could cause price to react and potentially reject lower.

If price does what we would like it to do and starts to look like it could meet this point of possible convergence, then we will be going down to our lower timeframes and watching price carefully before we take any action. What we want to see is a rejection first and then hopefully any additional signs for confirmation in the form of a micro bearish price pattern, structure or inner trend line break to the downside as this can help increase our probability for a short trade.

No rejection, no trade and we let it go.
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Keeping it simple with the third trendline touch, nice analysis. Thank you for sharing!
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