#AUDJPY: How to Spot a Potential Trade(Example) | #forex

*Correction: It's a LH not LL on the weekly chart

This is an attempt to demonstrate one way I use to approach the market and find potenital trades.

Starting from the higher time-frame - Weekly Chart

• identinfied highs and lows to clearly identify the trend(Bearish)
  
• Drawn the main falling trend line, and the fibonacci retracement levels.
  
• The latest upside pullback have reached the trend line and near the latest "L" and 38.2 retracement level
  
• The price formed a long-legged doji candle then a shooting star candle near that resistance area and trend line
  
• The price is retesting the low of the doji candle which is in my view key to a bearish resumption of the overall bearish trend.
  

Going to the lower time-frame - Four-hour Chart

• I have identified all the higher highs and higher lows for the recent major upside pullback.
  
• The price has recently broken the latest "HL" and thus has damaged the structure of higher highs and higher lows. and started a new possible structure of lower highs and lower lows.
  
• A pullback towards the area of interest or near that, then a bearish pin bar or a double top pattern could be the trigger for my short position,
  

If no confirmation, no trade
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