I've looked through the markets and updated my charts for the week. I noticed a total of 3 setups, two of which are included in this post. The last is a short on the Inside Day Failure candle that printed on Friday for USDJPY. These two pairs printed SFP patterns on Daily levels that align with the 0.618 Fib; EURUSD's is bullish and EURJPY's is bearish.
These two trade ideas conflict with one another because these pairs are directly correlated (move in the same direction together) on the Daily and Hourly charts. So I'm going to go with the EURUSD setup for the following reasons:
- The first swing point's shortest side of the swing into/out of the level is about 2.5X Daily ATR in height
- This idea would align with the USDJPY idea as the pairs are inversely correlated (move opposite to each other)
- I've been watching the collection of swing highs shown in the grey zone to be a level where liquidity may be building as we move nearer to the area
Still debating if I'm going to open this as soon as the market opens, or wait for the Asian or London session. Not sure.
I'll be watching to see if EURJPY manages to break the level it has SFP'd and then I'll be looking to join the market in probing liquidity located above.
These two trade ideas conflict with one another because these pairs are directly correlated (move in the same direction together) on the Daily and Hourly charts. So I'm going to go with the EURUSD setup for the following reasons:
- The first swing point's shortest side of the swing into/out of the level is about 2.5X Daily ATR in height
- This idea would align with the USDJPY idea as the pairs are inversely correlated (move opposite to each other)
- I've been watching the collection of swing highs shown in the grey zone to be a level where liquidity may be building as we move nearer to the area
Still debating if I'm going to open this as soon as the market opens, or wait for the Asian or London session. Not sure.
I'll be watching to see if EURJPY manages to break the level it has SFP'd and then I'll be looking to join the market in probing liquidity located above.