NZDJPY Consolidation box trade
In this chart, I have identified a consolidation box. Normally I prefer the breakout to happen to give clarity to the market. However the price is currently sitting between the 38.2 and 50 Retracement levels. This are from the Weekly chart which provide strong structure. The Weekly chart is generally Bearish and respecting a downward trendline. The Weekly chart is shown by the Black line.
From the 1 & 4 hour chart, price is making a series moves within this range. Furthermore within this range price is respecting a minor trend line (red).
I have drawn a minor trendline on the 1 hour chart, if this is broken I expect price to fall again to the lower red line. Risk reward is 1:3 (25:75)
I am not too keen on these small time frame patterns. But I am curious to see how it reacts.
From the 1 & 4 hour chart, price is making a series moves within this range. Furthermore within this range price is respecting a minor trend line (red).
I have drawn a minor trendline on the 1 hour chart, if this is broken I expect price to fall again to the lower red line. Risk reward is 1:3 (25:75)
I am not too keen on these small time frame patterns. But I am curious to see how it reacts.
Comment:
This is the second Tim price has broken out of a major weekly trend line before a 61.8 retracemet. I will be watching to see the outcomes