Kevin_Zhang

SGDJPY Swing Trading Opportunity

Short
OANDA:SGDJPY   SGD/JPY
Hi everyone,

SGDJPY has just formed a bearish butterfly harmonic pattern on the 1-hour timeframe with significant confluence as price-action has reached the upper resistance level of SGDJPY's current ascending channel .

The potential reversal zone (PRZ) is comprised of 3 ratios:
4.23 BC projection at 81.813
1.618 XA projection at 81.793
3.14 alternate AB=CD at 81.776.

Stop loss is set at the 2.0 XA projection, or 82.034.
Take profit is set at two levels, management and final.
The management level is the 0.382 AD retracement, or 81.406
The final level is the 0.618 AD retracement, or 81.168

The terminal price bar has just formed, confirming all three ratios.

Price is also trading in an ascending channel that has formed as of the 8th of January, and the terminal price bar has not only confirmed the PRZ of the butterfly pattern but also reached the upper resistance level of the channel, creating a strong indication of a possible reversal downwards to occur.

RSI has also reached overbought territory on the 4-hour, indicating a long term overbought state of the pair.

As always, analyze price action as well for more confluence of a reversal!


Thanks for reading,
Kevin
Comment: First take-profit level reached! I have moved stop-loss to break-even.
I am watching the foreign investment into JPY stocks closely right now and seeing market reaction.

If price action forms some sort of bullish reversal formation I will consider taking 50% profit and then letting the rest of the trade run.

Result of foreign investment into JPY stocks was an improvement:
-102.0B actual, -124.0B previous.
Trade closed: target reached

Comments

Nice work! keep it coming
+1 Reply
Kevin_Zhang PoopTrader
@PoopTrader, Thanks!
Reply
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