On this chart you can clearly see that trend has lost momentum for the time being and is ranging in consolidation. During this time i always look for divergence in the RSI to indicate a shift in trend momentum. price has also broken below the 50 EMA and also broke trend. There is also a break in the -120 on the CCI which can be considered a good indication of selling volume entering the market. however we are looking for the true breakout to happen here. we recently saw USDJPY fall pretty hard, i think this could be next.
My first entry is a bit aggressive but I will enter a small position on the pullback to the 50 EMA. I will only add another position if it wicks back to the top of the consolidation range. i would get in at the top of the wick and enter the same stop loss as the first entry. in this case the trade is either good to go or it is going to fail.
My first entry is a bit aggressive but I will enter a small position on the pullback to the 50 EMA. I will only add another position if it wicks back to the top of the consolidation range. i would get in at the top of the wick and enter the same stop loss as the first entry. in this case the trade is either good to go or it is going to fail.