moneymaking
Short

USDJPY: BEARISH CRAB PATTERN COMPLETED ON 4 HR !!!

FX:USDJPY   U.S. Dollar/Japanese Yen
668 24 14
Hello Traders,

Here we have a BEARISH HARMONIC CRAB PATTERN on FX:USDJPY             , that has been completed. We also have a POSSIBLE RSI bearish divergence and the reason I call it a possible RSI divergence is because I DO NOT take divergences seriously unless they are proven by the market. What I mean by that is, ONLY when the market starts to break structure in the DIRECTION of the divergence, then do I take divergences into account. Therefore, the current divergence that we are seeing right now could be proven wrong by the market. We also have a decent risk to reward ratio for this setup and for crab patterns the stop loss is placed 10 to 20 pips above (for short trades) the 200% Fib extension level for XA leg. See the chart above for more details.

I would also like to point out that, for placing the stop loss I DID NOT took structure into account because if I had done that than, the risk to reward would have been quite unfavourable for us to take the trade. Thus for this particular setup, I have just followed my rules on HARMONIC CRAB PATTERN in determining the correct stop loss placement.

NOTE #1: The pattern has been completed BUT the trade is NOT ACTIVE YET !!

Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Good Luck :)
UPDATE #3: Hi everyone, if anyone forgot to move their stop loss to break even than, you 2nd target has been hit. Congrats :)

All positions are now CLOSED for this setup. Good Trade :)
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UPDATE #2: Hey guys, breakeven stop has been hit. All positions based on this setup are now CLOSED. Good Trade :)
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This was a sweet setup
+1 Reply
KevinSinghDhaliwal KevinSinghDhaliwal
snapshot
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moneymaking KevinSinghDhaliwal
Hey Kevin, yeah it was a pretty good setup.
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UPDATE #1: 1st target has been reached. Stop moved to break even.
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TahirAli moneymaking
Good job mate,looks like TP2 will be hit too.I missed the entry but after today's long bearish candle,I am planning to short this thing on sunday once the market is open.
+1 Reply
moneymaking TahirAli
Hey Tahir, yeah the NFP did gave us a little scare, but with proper money management it worked out just fine :)
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Agree, from my point of view this pair is making and expanded flat correcion (wave c to come)
snapshot
+1 Reply
moneymaking FullTimeTrader
Hey FullTimeTrader, yes I also think we are likely to get a correction up to the level that you pointed out, before continuing to go higher. The major trend is clearly BULLISH, this is just a correction type trade for us. Getting long on this pair near the wave c bottom would be a really good long term entry. Time to wait and see how the market unfolds from here. Good Luck mate :)
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