There is a potential Descending Triangle setting up on the 4 hour chart of the
USDJPY
. As Descending Triangles are continuation patterns where there is a steady level of support at the base of the triangle and also lower highs coming down the upper trend line of the triangle, we will look to go SHORT and ride the trend downward. As this pattern continues to develop we will continue to look for lower highs for confirmation. We will look to get into this trade with a break of the lower support line @ 111.688. We will set a SELL STOP at 111.670 in order to get in on the break.
ENTRY
111.670
STOP
112.600
TARGETS
111.200
110.900
109.890
Published on 10/17/17
USDJPY
. As Descending Triangles are continuation patterns where there is a steady level of support at the base of the triangle and also lower highs coming down the upper trend line of the triangle, we will look to go SHORT and ride the trend downward. As this pattern continues to develop we will continue to look for lower highs for confirmation. We will look to get into this trade with a break of the lower support line @ 111.688. We will set a SELL STOP at 111.670 in order to get in on the break. ENTRY
111.670
STOP
112.600
TARGETS
111.200
110.900
109.890
Published on 10/17/17
Comment:
As well, the 50 day SMA has crossed over the 100 day SMA and the MACD histogram is starting to turn over as well. Price looks as though it may continue to pull back toward the 200 day SMA confirming our set-up.
Comment:
Price outside of the triangle for the past 8+ hours.
We will see if we get back down into the triangle. If not, then this set-up will be negated and we will look for a new set-up
We will see if we get back down into the triangle. If not, then this set-up will be negated and we will look for a new set-up
Order cancelled:
Negate Set-up. Price jumped through the upper trend line. Now we see if there is a double top in the near future.