But for now, in my last post and my previous posts on this pair on Scenario #1, I've posted about triangle patterns The first triangle was a PERFECT success (see Related Ideas: "QUICK ANALYSIS: USDJPY: Scenario #1: Contracting Triangle Wave 4"). The second triangle ( a larger one) is still in progress and has not been ruled out yet (see Related Ideas: "USDJPY: Scenario #1: First Triangle Done? How About Another One?").
Here I am pointing out the POSSIBILITY of yet another that could form. Triangles are hard to predict until you see at least the D leg complete. So in this case, I am only foreshadowing a POSSIBLE . Not saying there is one. In the chart above, I point out where if prices should get to and bounce from there, then we could be looking at another triangle. That critical point is also a MAJOR STRUCTURE and there is also a POTENTIAL that would complete RIGHT AT THAT structure. If it bounces from there, then the upward TL I have drawn in would become the lower TL of this new triangle. And the resulting leg up would be the E leg of that triangle.
MY TRADE PLAN
I do not have any RECENT trades on this pair. I do have several long term SHORT positions still active on this pair and all this consolidation price action does nothing to make me want to close those long term SHORTS. But for the present, I will be looking to take a LONG position on the completion of the for the leg up on the triangle. There is of course the possibility that prices will keep going up and not recognize the triangle. That is why I would take the LONG trade off this even though the potential profit going to the upper TL of this possible triangle is not that much. Keep in mind that I do have a Scenario #2 where prices do keep going up SIGNIFICANTLY!
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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