USDJPY - Trading with the Flow - Simple MTFA + Screenshots
Hi Traders!
The market is in a Downtrend.
You'll discover the behavior of the market for the daily, H4 and H1 Timeframe.
This is called the Multiple Timeframe Analysis (mtfa).
So let's start with the daily:
At first we drew the most important (turquoise) Levels.
Then we drew the descending and at last the ascending Trendline.
The connection of those trendline results a Triangle.
This Triangle isn't bullish or bearish; it's neutral.
But the bearish pressure is higher, because of:
- You already know the market is in a Downtrend.
- The 50 EMA is resisting and touching the price.
Now we switch to the H4-Timeframe:
Here we analyzed the price action behavior of the Up- and Down-Movements.
As you can see, the Down-Movements are more aggressiv and more straight then the Up-Movements.
Of course it is sometimes the otherway round, but mostly it is like this.
Finally, we get to the H1-Timeframe:
The market is moving in a ascending Parallel Channel.
Pay attention to this:
The most recent high was lower than the High before.
So this was lower high.
In addition the price reached the D1-Trendline.
Our Trading Plan is this:
If the price breaks and closes below the Channel, we short.
The SL is above the recent High, the TP at next conservative Level.
We recommend to trade the market with a Risk-to-Reward ratio (RTR) of at least 1 to 1.5.
Thanks and successful Trading Week :)!
The market is in a Downtrend.
You'll discover the behavior of the market for the daily, H4 and H1 Timeframe.
This is called the Multiple Timeframe Analysis (mtfa).
So let's start with the daily:
At first we drew the most important (turquoise) Levels.
Then we drew the descending and at last the ascending Trendline.
The connection of those trendline results a Triangle.
This Triangle isn't bullish or bearish; it's neutral.
But the bearish pressure is higher, because of:
- You already know the market is in a Downtrend.
- The 50 EMA is resisting and touching the price.
Now we switch to the H4-Timeframe:
Here we analyzed the price action behavior of the Up- and Down-Movements.
As you can see, the Down-Movements are more aggressiv and more straight then the Up-Movements.
Of course it is sometimes the otherway round, but mostly it is like this.
Finally, we get to the H1-Timeframe:
The market is moving in a ascending Parallel Channel.
Pay attention to this:
The most recent high was lower than the High before.
So this was lower high.
In addition the price reached the D1-Trendline.
Our Trading Plan is this:
If the price breaks and closes below the Channel, we short.
The SL is above the recent High, the TP at next conservative Level.
We recommend to trade the market with a Risk-to-Reward ratio (RTR) of at least 1 to 1.5.
Thanks and successful Trading Week :)!
Comment:
Here is the RED BOX for you: