When I had done my pre-market analysis this weekend I wasn't seeing anything that had showed me it could be a high probable trading setup. After watching some liquidity come into the market GBPJPY had caught my attention. GBPJPY is at structure highs on the 1D timeframe and has been showing strong signs of buyer exhaustion and seller strength/control. If you look at the 4H timeframe you can see every push up by the buyer is followed by a very strong push down by the seller. This indicates that the buyers are dying out and the sellers are taking control. It is failing to make new highs and is being followed by strong seller momentum. By the market doing so it shows me that the sellers are interested in selling price and the buyers are dying out. REMEMBER TO ALWAYS LET TO MARKET TELL YOU WHAT IT WANTS TO DO, NEVER TELL THE MARKET. At the end of the day if you want to be trading profitable, and probable setups you have to flow with what the market is telling you. So lets dive into this.
*price is sitting at very significant structure around the 148.00 handle
*buyers have attempted to re-test highs but sellers smack down price with strength (showing control)
*buyer is dying out ( candle)
*on this timeframe chart at the highs buyers are followed by stronger seller momentum (control)
*watch for a break and hold beneath the 4H ascending trend-line, so that all participants are on the same page (equating to larger move)
*watch for slight small weak reaction at , break beneath, and a small re-test before dropping (if it does)
*use this chart for precise entry based on momentum, structure, and good risk/reward
Keep an eye out! Cheers!
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