Keeping a close eye on USDJPY at these levels and watching for a break of descending triangle pattern support for a short entry.
Comments
epsion22
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So trying to read this chart, if I was short this pair, would my take profit point be 101.22 or down by support (S1/S2?)
SighTTrader
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101.22 - 101.25 are my targets but be careful with 101.5 as that number always has support.
epsion22
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thanks, you mean like psychological support for flat numbers or halves? (100, 100.5, 101 etc?)
SighTTrader
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exactly what i mean :).
MeshalAlnashri
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just refreshed the chart and the triangle is working,
SighTTrader
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yeah pattern is working nicely so far delivering some nice profits.
MeshalAlnashri
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my teacher says that continuation patterns like these are stronger when they g alongside the trend, what do you think o that?
SighTTrader
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it depends on when you use the patterns, its easier to spot them when you look for a continuation of a trend and more difficult when looking for a reversal, but its essential to know when a reversal is likely to happen or else you end up buying the high or selling the low. its a matter of getting comfortable with the pattern and knowing under what conditions they work best. Reversal requires you to understand what a strong resistance area looks like so that way when you notice a resistance level like that, youll know that this pattern will have a high Probability of success. i guess its a matter of experience with the patterns imo.
MeshalAlnashri
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like this one? the pattern formed under a strong resistance level and the price broke the uptrend line and once it breaks the channel and the LL i think it's going to the next trendline i'm going to close my short. just need to check for indicators,divergence,fibs,etc. although something in my guts tells me that the dollar isn't this weak.
SighTTrader
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yes, like this one but what gives a descending triangle pattern away is the squeeze, notice how every wave was smaller until, it was too small to make an actual bounce, after it just broke down. a slow and steady squeeze usually indicates a good chance of pattern working. any persistence towards the top of the pattern usually means bull flag. each pattern has a movement pattern, a squeeze down has a specific way of moving and a persistence up also has a manner of movement if you can tell the difference of how the candles move inside each pattern youll get the trades right most of the time.