GBPJPY SHORT IDEA:
1W Chart:
*Based on the weekly chart it clearly displays the rejection to the upside created by buyers and how the sellers had brought price back down and ended the week with a lower low lower close.
*The Flow has changed from buyers trend to sellers as you can see the market started to create lower highs and lower lows which identifies it as a seller trend. The new low hasn't been created yet which is what we are anticipating to happen based on price action and momentum from the sellers.
1D Chart:
*The buyers had reacted to the ascending trend line on the daily which caused price to rise before the seller taking over. This had caused to the large wick to the upside on the weekly chart.
*The ascending trendline has now been broken and breached on the daily chart giving the sentimental bias now to the short side. The daily and weekly players are now on the same page which equals larger moves in the market
*We also see strong momentum from the sellers, not allowing price to get too expensive before bringing it back down (showing they are ready)
4H Chart:
*The 4 hour chart is showing a downtrend with momentum playing on the short side much stronger than the buy side. This shows the sellers strength and interest in selling this market
*Look for re-test on this timeframe to give more precise entry for the short positions
*Look for re-test of that daily ascending trendline around 145.300 handle
Entry:
*Look for a re-test into structure around the 145.300 handle (recent significant level)
*Wait for the seller to show his interest come back into play on 4H timeframe and use a good risk/reward ratio
*Don't risk more than 2% of trading capital no matter how good the setup may look
Cheers!
1W Chart:
*Based on the weekly chart it clearly displays the rejection to the upside created by buyers and how the sellers had brought price back down and ended the week with a lower low lower close.
*The Flow has changed from buyers trend to sellers as you can see the market started to create lower highs and lower lows which identifies it as a seller trend. The new low hasn't been created yet which is what we are anticipating to happen based on price action and momentum from the sellers.
1D Chart:
*The buyers had reacted to the ascending trend line on the daily which caused price to rise before the seller taking over. This had caused to the large wick to the upside on the weekly chart.
*The ascending trendline has now been broken and breached on the daily chart giving the sentimental bias now to the short side. The daily and weekly players are now on the same page which equals larger moves in the market
*We also see strong momentum from the sellers, not allowing price to get too expensive before bringing it back down (showing they are ready)
4H Chart:
*The 4 hour chart is showing a downtrend with momentum playing on the short side much stronger than the buy side. This shows the sellers strength and interest in selling this market
*Look for re-test on this timeframe to give more precise entry for the short positions
*Look for re-test of that daily ascending trendline around 145.300 handle
Entry:
*Look for a re-test into structure around the 145.300 handle (recent significant level)
*Wait for the seller to show his interest come back into play on 4H timeframe and use a good risk/reward ratio
*Don't risk more than 2% of trading capital no matter how good the setup may look
Cheers!