Technician

#USDJPY: Following the Price Action | #forex

FX:USDJPY   U.S. Dollar/Japanese Yen
2747 12 32
  • Spotting the highs and lows is the most important basic analysis approach, which will make you able to identify the ongoing trend
  • If you spotted the series, you should expect that this series of Higher highs & Higher lows or Lower highs & Lower Lows will continue. WHERE a break of this series is the first and most important signal of a trend reversal.
  • Trading in the direction of the trend as you can clearly see on chart would have been very profitable if timed properly. If you have in mind that the price is making higher highs and higher lows, you will adjust to that, looking for downside pullbacks to find a potential entry point.
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e.g. Two great entry points were provided by price action. The first was in September 2012. where price was testing the previous HL. According to the HH&HL Rule, that low should remain intact for the trend to remain bullish . Therefore, a long position should be initiated there. That entry area has the greatest risk-reward possible, because stop loss would obviously be below the latest HL.

Another example where the price was in a similar position, was in in may 2014.

One more great bullish signal was the retest of the previous HH in october 2014, where the price formed a hammer candle.

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Hey Technician, I just wanted to clarify one more thing from you. So if the market is in a downtrend and we get a candle with a wick extending beyond the previous LL, but the candle close above the previous LL. Would this be considered as a change in trend, at least for a short-term? Thanks!!
Reply
Technician TOP moneymaking
Under my personal rules, No. I dont consider this a real breakout, a breakout mush be based on the closing basis of the time-frame am analyzing.
+1 Reply
moneymaking Technician
Awesome, Thank you for clarifying :)
Reply
hey mate. it is always clear on hindsight. it is hard when we trading on the right edge of the chart. Just saying. Cheers!
+2 Reply
Yes it is indeed.
Reply
As always, very good. Thanks
Reply
Thanks vila
-1 Reply
Technician, thanks for your valuable insights. 2 questions I have are

1. Do you always start from weekly charts and then move to daily to hourly? Also, what time frame in general you start with for weekly charts?
2. Do you annotate HH/HL or LH/LL based on the closing prices always?
Reply
Hello,

It depends on the strategy i am using. For this particular strategy, I use the higher time-frame first to spot the dominant trend, usually weekly, then trade with that trend using the lower time-frame, daily or four-hour, not less than that.

Yes only on a closing basis.
+1 Reply
Hello Technician, This is really clear and easy to understand for a newb like me, can you recommend any courses where I can learn this stuff?
Reply
Glirusse Delliks
Simple Price Action. Lance Beggs have written a very useful book about this stuff.
Reply
i followed you. i hope your usdjpy new sight
Reply
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