Akil_Stokes
Long

USDJPY - Head & Shoulders Bottom with 2 Different Entries

FX:USDJPY   U.S. Dollar / Japanese Yen
In this week's video, we took a look at a head & shoulders bottom pattern on the USDJPY . Not only was this a setup that has been on my radar for a while, but I thought it would be interesting to discuss because it offers multiple ways to enter depending on your head and shoulder preferences.

The Sloping Neckline
Many traders will attach a trend line from the first & second test of the neckline in order to project where the pattern completes. In a case like this where the second test occurs lower than the first, an inward sloping neckline is created which will offer a lower validation point and often an earlier opportunity for a trader to involve themselves in the trade.

Horizontal Resistance
Using horizontal resistance will require a more powerful level of structure to be violated before the trade can be entered, however (as you can see on the chart), you're going to have to wait a little bit longer to involve yourself in the trade and it will have an effect on your overall risk to reward ratio.

In blue is a projected "equaled measure move" or ABCD pattern in which I used to help me project profit targets for this trade. It's not shown on this chart (but discussed in the youtube video "Using ABCD Patterns for Entries & Targets), but if you were to go down to a lower timeframe looking for a potential entry on a retest of the sloping neckline then there's also a smaller ABCD pattern that can be used to build a case for entry as well.

I wish you guys a safe trading week.

Not sure how long I'll be back on tradingview for, but the response that I received from the random post that I did a few days ago motivated me to try and make a better effort. So no promises, but I do appreciate the love!!

Your Trading Coach - Akil
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Very nice setup. I have been watching this as well. Looks like a retest of the trend line was attempted last night. Curious to see how this plays out.
+1 Reply
@Barnum51, Thanks, I've been watching it very closely today
Reply
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