USDJPY - Trading the Trend Continuation - Neckline Break
Hi Traders!
The market is in a downtrend.
We're going to analyse those timeframes: W1 - D1 - H4 - H1
Let's begin the multiple timeframe analysis with the weekly Timeframe.
The market is moving below the 50 EMA, so it has more bearish pressure at this moment.
Furthermore, it is also moving in a descending Parallel Channel.
So, we're looking to short this market in the long run.
Let's have a look at the Daily Timeframe:
Here you can see the parallell Channel in a close-up again.
In addition, there is a strong descending Trendline there.
This is pushing the market down lower and it gives some more bearish pressure.
Beside this, we can define the next Target level too: It is the next Support Level.
Moving on to the H4-Timeframe:
There is something interesting to consider in the past, but it doesn't effect the current situation much.
It is the Head and Shoulders Pattern.
After the market broke out of the Neckline, it moved in a Consolidation.
Finally, it broke out of this Range Box too.
Lastly, here is the H1-Timeframe:
In this Timeframe you can see a descending Parallel Channel after the Breakout.
It is pointing into the target direction.
This the Entry Trading Idea:
The last few bars, the market moved at the Neckline at 103.147.
If the market breaks this Neckline, it makes automatically a lower low and the Trend continues.
The SL is above the last high and the TP at next Support.
We recommend to trail the SL with the 50MA.
Thanks and successful Trading :)!
The market is in a downtrend.
We're going to analyse those timeframes: W1 - D1 - H4 - H1
Let's begin the multiple timeframe analysis with the weekly Timeframe.
The market is moving below the 50 EMA, so it has more bearish pressure at this moment.
Furthermore, it is also moving in a descending Parallel Channel.
So, we're looking to short this market in the long run.
Let's have a look at the Daily Timeframe:
Here you can see the parallell Channel in a close-up again.
In addition, there is a strong descending Trendline there.
This is pushing the market down lower and it gives some more bearish pressure.
Beside this, we can define the next Target level too: It is the next Support Level.
Moving on to the H4-Timeframe:
There is something interesting to consider in the past, but it doesn't effect the current situation much.
It is the Head and Shoulders Pattern.
After the market broke out of the Neckline, it moved in a Consolidation.
Finally, it broke out of this Range Box too.
Lastly, here is the H1-Timeframe:
In this Timeframe you can see a descending Parallel Channel after the Breakout.
It is pointing into the target direction.
This the Entry Trading Idea:
The last few bars, the market moved at the Neckline at 103.147.
If the market breaks this Neckline, it makes automatically a lower low and the Trend continues.
The SL is above the last high and the TP at next Support.
We recommend to trail the SL with the 50MA.
Thanks and successful Trading :)!
Comment:
Here is the RED BOX for you: