JP225USD has just confirmed a on the 1-hour timeframe.
The potential reversal zone (PRZ) is comprised of 3 ratios:
0.886 XA retracement at 21357.1
2.0 BC projection at 21370.5
1.618 alternate at 21407.2.
Stop loss is set at the 1.13 XA projection, or 21216.0.
Take profit is set at two levels, management and final.
The management level is the 0.382 AD retracement, or 21553.1.
The final level is the 0.618 AD retracement, or 21673.8.
Overall risk to reward ratio for this trade is 2.24.
Price is still on its way to the three ratios and the terminal price bar has yet to be established, but price action is nearing the PRZ so this is something I am watching actively.
Looking at major timeframe analysis, the 4-hour timeframe shows an overall structure, acting as confluence to our long position.
has also reached oversold territory on the 1-hour timeframe at around 26 as we await the formation of the terminal price bar.
Make sure to confirm the establishment of the terminal price bar to confirm all three ratios of the PRZ, and also watch price action before taking a trade!
Thanks for reading,
Price just confirmed all three ratios and the terminal price bar has been established. I'm watching actively (haven't entered yet), and waiting for additional confluence in the form of price action now.
Make sure to never enter a trade unless you are sure of the reasons why!
I'm not gonna enter this one. Too much uncertainty over effects from the ECB decision on the index as a whole. Overall market reaction seems to be bearish as well now since the decision.
Onto the next one!