Here we see a lot of equal highs and quite obviously retail traders got in seeing a resistance, putting their SLs right above the equal highs. Smart Money knows about Retail Mentality and they know where their SLs would be. They need these SLs to grab liquidity, the latest upwards movement cleared all the SLs, now I'm considering EU to go down as the banks have...
Got a double top, RSI over bought on the first test.
Consolidation at previous structure
expecting a break out to the down side atleast an equal measured move
strong confluence of fib inversion and fib extension
previous major structure
here on EURJPY we have a good trend opportunity. JPY piars are all trending very heavy lately and continue to make higher highs. Being that, i want to hop on trend everytime price gives me a chance.
In this chart we have two AB=CD patterns, three good fibonacci levels all lining up at previous support.
Sounds like a good opportunity to go long to me....
Need a little bit down to reach the exact equal leg. However, CD leg can be going so far, - up to 261.8%
Normally it should fall in the red area (100 - 123.6%) So, the plan is:
Wait until it touch the read area and show the clear bullish reversal price action
I just closed all my long term longs on $GER30 as I think we are in a great place to reverse or correct for a long time. As we can see on the graphs, waves with equal legs and we just completed 5 waves up. Also, RSI at trend line resistance. If I see anything bearish on 4hr, I might try to short in few days.