GBPJPY, 4hr tf, sell the retest of HnS pattern neckline
Hello my friends,
I hope you all enjoy your weekend.
I would like to share my trading plans for next week and i hope you gonna enjoy my plan.
If you find it useful, don't forget to give it a thumb up and follow me for my next update.
As you can see there is a clear Head and Shoulders pattern on GBPJPY,
Price broken below the neckline with a strong bearish candle validating our breakout.
I haven't enter this trade yet because i wanna see price to retest the broken neckline first.
If we count the measured objective of this HnS pattern, it should be targeting 136.00 - 135.90 which is around 240 pips from the neckline.
I also tried to breakdown the GBPJPY recent movement with Elliott waves theory and i found there is a chane we could see come retracement towards 138.30-50 area as we're now on Wave-iv correction.
We could see Wave-iv as an ABC correction so preapare to sell it after the end of wave-c.
It will be more convincing if there is a momentum divergence as well on it's way to the upside.
Also pay attention that 138,30-50 area gonna be an area of confuences resistance because there is horizontal resistance level and dynamic EMA-resistence.
Sell GBPJPY arond 138.30-50
Stop loss 138.85
Take profit 136.00 (7R)
RR ratio 1 : 7
Use only 1-2% risk
Good luck
I hope you all enjoy your weekend.
I would like to share my trading plans for next week and i hope you gonna enjoy my plan.
If you find it useful, don't forget to give it a thumb up and follow me for my next update.
As you can see there is a clear Head and Shoulders pattern on GBPJPY,
Price broken below the neckline with a strong bearish candle validating our breakout.
I haven't enter this trade yet because i wanna see price to retest the broken neckline first.
If we count the measured objective of this HnS pattern, it should be targeting 136.00 - 135.90 which is around 240 pips from the neckline.
I also tried to breakdown the GBPJPY recent movement with Elliott waves theory and i found there is a chane we could see come retracement towards 138.30-50 area as we're now on Wave-iv correction.
We could see Wave-iv as an ABC correction so preapare to sell it after the end of wave-c.
It will be more convincing if there is a momentum divergence as well on it's way to the upside.
Also pay attention that 138,30-50 area gonna be an area of confuences resistance because there is horizontal resistance level and dynamic EMA-resistence.
Sell GBPJPY arond 138.30-50
Stop loss 138.85
Take profit 136.00 (7R)
RR ratio 1 : 7
Use only 1-2% risk
Good luck
Trade active:
My sell active from 138.60 during this morning gap up