waiting for this beautiful H&S to form. I will update if I will see a good setup
Comment:
The USDJPY currency pair has been exhibiting a technical pattern known as the "head and shoulders" candlestick formation on the one-hour timeframe, beneath the weekly pivot points. This pattern typically signifies a trend reversal, with the left shoulder and the head forming after a price increase, and the right shoulder forming following a subsequent decrease.
In the current scenario, the head of the pattern was formed after a rejection of the R1 daily pivot point, while the left shoulder was formed after a previous rejection of the same pivot point. If the current one-hour candle closes beneath the exponential moving average (EMA), a short position is warranted after the price penetrates the current daily pivot points. The risk-to-reward ratio for this strategy is set at 1:3, to ensure that gains are maximized while losses are minimized.
Alternatively, if the price manages to break above the area of the left shoulder, a long position is advisable. It is crucial to note that the trade analysis is based on technical analysis and should not be used in isolation but as part of a comprehensive trading strategy.
Overall, traders are advised to stay alert to any changes in market conditions and adjust their positions accordingly. Sound risk management principles should also be employed to avoid significant losses.
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In the current scenario, the head of the pattern was formed after a rejection of the R1 daily pivot point, while the left shoulder was formed after a previous rejection of the same pivot point. If the current one-hour candle closes beneath the exponential moving average (EMA), a short position is warranted after the price penetrates the current daily pivot points. The risk-to-reward ratio for this strategy is set at 1:3, to ensure that gains are maximized while losses are minimized.
Alternatively, if the price manages to break above the area of the left shoulder, a long position is advisable. It is crucial to note that the trade analysis is based on technical analysis and should not be used in isolation but as part of a comprehensive trading strategy.
Overall, traders are advised to stay alert to any changes in market conditions and adjust their positions accordingly. Sound risk management principles should also be employed to avoid significant losses.