TradersClassroom
Short

EURJPY Bearish Divergence

FX:EURJPY   Euro Fx/Japanese Yen
67 7 2
We are right at the divergence line. Time to see if it holds. Pretty good risk reward if you're into that kind of thing.
I'm not sure what it is you're projecting ?
You're showing that price action has clearly broken out
above the resistance of the channel, so, you're predicting
a false breakout that will fall back into the channel ?
If the day closes above the resistance will that change
your idea for a short ?
Thanks for your thoughts !!!!!
Reply
Looking at RSI. Looking for it to break the RSI line to confirm breakout. If it cant break the RSI line then I project a false breakout. It's a wait and see right now. Today's close will tell the story. Thanks for your comments! Happy Trading!
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Bearish Divergence on hourly as well. Don't know if we will see any follow through on the bullish breakout.
snapshot
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dojitrader TradersClassroom
I'm also watching closely as I've been bearish, but, price action is changing my bias.
Divergence can be very helpful, but, it is also very tricky, especially in the context
of support and resistance. To my experience, price action always trumps divergence
and when price action has already broken resistance the divergence could be
signaling nothing more than a rest and retest of the resistance which has a
high probability of becoming support. (a great buying opportunity?)
At this point I do not see anything else that also supports the support.
Perhaps the candlesticks will offer a low risk long entry trigger.
Anyway, your chart has my finger on the trigger where, before,
the impulsive turn around had me looking else where for a trade.
{{now if the test of support fails . . . that would have me short in
a heart beat ~~~}}
Pips to us both !!!!!!!
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I have seen your charts. You're an excellent trader. I know you'll make pips on this pair no matter which way it goes because you're patient and wait for good entries. Good Luck!
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Oh and I agree with you. Price always trumps indicators. Trading pure price action is a very profitable strategy.
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Breakout looks to be confirmed. No longer a valid short
Reply
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