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tradewonk
Jul 15, 2017 9:39 AM

AUDJPY Short

Australian Dollar/Japanese YenFXCM

Description

Supply zone ahead, possible retracement, short opportunity.

Stuff to remember:

— First look for significant move, then follow it to its origins where you might find a suitable level to evaluate further

— Make sure the initial move is significant on the same timeframe as the one you use for viewing your candidate level most clearly

— Check the distance that price traveled before the trend ended, longer distances mean larger initial imbalances and improved probabilities in the future

— The strong initial move can contain a few small retracements but not so many that make this move slow and weak

— Avoid opposing levels on the same and immediately higher timeframes, prefer to have a clear road ahead for your trade to run

— Make sure your level is placed correctly (low for Demand, high for Supply) in relation to the big picture's important tops and bottoms

— Trading the first return of price to a valid "fresh" level carries the highest probabilities due to the larger imbalance

— A valid level is considered "fresh" if price has not returned to it since its creation. It has nothing to do with how old the level is
Comments
jojofang0901
Beautiful trade setup, thank you for sharing your view. I have similar idea as well on this pair.
mburchia
A question that may not be concerned with your trading idea but what broker do you use for trading?
KyleMcQuade
Hi, do you trade support/resistance alone?
tradewonk
@KyleMcQuade, I trade supply and demand zones, but i do have support and resistance just to have a better overview.
ajmzfx
Hi..I agree with your "stuff to remember notes"...I see a huge breakout coming maybe Wednesday or Thursday...
Thank you..
tradewonk
@ajmzfx, No problem!
aalotto
can we get this little long to 89,720?? and them sell?
tradewonk
@aalotto, The whole red area is a good price to sell, but when the price does hit the area, just be sure it's not because of a big news or friday afternoon, just before weekend.
aalotto
@tradewonk, Thanks very much!
tradewonk
@aalotto, No problem!
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