Looking at the 4 hour chart I have identified that the Japanese Yen is going against the Pound and moving overall in a downtrend.
I moved over to the 1 hour chart to identify a set-up, therefore I looked for the most recent ended SHORT session within the market
and also identified the SWING HIGH and SWING LOW for the session and plotted my FIB retracement tool from the SWING HIGH and
dragged to the SWING LOW. The SWING LOW on the chart also represents a strong level of SUPPORT (132.78) and in recent past,
price went from 132.78 all the way up to 135.180 which formed the SWING HIGH, and then rallied back down to the area of SUPPORT.
Now price is currently around the support area and we are looking for price to move towards the upside and to target the 61.8% FIB level as RSI is indicating that the currency pair is becoming oversold and the buyers could take control.If price moves towards the upside, I will be looking for an ascending triangle formation to further back up my set-up. If all of the requirements meet for this trade set-up, then I will be placing a SHORT POSITION setting a 2:1 RISK REWARD RATIO.
Please let me know what you guys think of this trade set-up :)
I will post an update of this set-up whether I have placed this trade or not and why :)
I moved over to the 1 hour chart to identify a set-up, therefore I looked for the most recent ended SHORT session within the market
and also identified the SWING HIGH and SWING LOW for the session and plotted my FIB retracement tool from the SWING HIGH and
dragged to the SWING LOW. The SWING LOW on the chart also represents a strong level of SUPPORT (132.78) and in recent past,
price went from 132.78 all the way up to 135.180 which formed the SWING HIGH, and then rallied back down to the area of SUPPORT.
Now price is currently around the support area and we are looking for price to move towards the upside and to target the 61.8% FIB level as RSI is indicating that the currency pair is becoming oversold and the buyers could take control.If price moves towards the upside, I will be looking for an ascending triangle formation to further back up my set-up. If all of the requirements meet for this trade set-up, then I will be placing a SHORT POSITION setting a 2:1 RISK REWARD RATIO.
Please let me know what you guys think of this trade set-up :)
I will post an update of this set-up whether I have placed this trade or not and why :)