NZDJPY Sell signal with potential H&S in the making

On the left we can see a potential H&S in the making, but obviously it is very premature. There are a few reasons though for me to assume it is a realistic option.

At the high we can see a gap up that got sold of quite big with to big red daily candles. This is a sign of weakness and shows there is a potential high set. When we zoom in, i will get in with 50% of a small size if that first blue zone breaks, not any sooner. When that happens i will use today's high as a stop as you can see in the chart. If the second blue zone breaks i will add the other 50% and then just wait for it to touch the potential neckline. That neckline will be my first target where i unload half my position.

After all this it will be sitting and waiting to see if the H&S become reality or not. If it does happen, i will make it a decent size if the neckline breaks.

Comment:

Could be a small wedge in the making here

Comment:

I had the potential wedge in sight earlier today, i was not that confident about it though. No i saw it during the drop, halfway, but i dont like to chase markets. So i missed it myself :(.

Anyway, for the ones who did get in, it is looking very good for that potential H&S. If it is able to reach the the neckline within 2 or 3 days, it could really work out.