You know what they say: Hindsight's 20/20. After the USDJPY sell off on hourly chart I noticed that a Gartley had completed on daily. That, plus all the other signals I had, I should've been less conservative with my targets. Oh well, I still earned about 32 pips off the trade. (Trade on hourly)
Previous prediction didn't hold. Which I was 50/50 if it would. It was a weak pattern and no RSI. Now I am looking for at potential sell higher up. This time looking better. RSI is heading to overbought, its a strong resistance with some fib confluence there. It would also complete and AB=CD. When price gets there i will wait for a retest and check for divergence.
Kind of a weak gartley forming. Price heading back to a structure area. Also a .382 retracement on a larger leg in daily chart. Im unsure of this trade because it looks like the short opportunity had already happened when it went into resistance area and rsi went overbought with a small divergence. Looks like the market came down to catch its breath and is about...
Unfortunately I missed this trade. I am posting it for a reference of what a high probability trade looks like. Many things lined up to make this high probability:
1. Price reached a strong resistance area
2. RSI was overbought
3. RSI showed convergence
4. double top, retest of structure
5. Fibonacci extension of the lower impulse leg, 1.272
6. On top of all that...
watching for a counter trend position. If RSI is overbought and a double bottom with divergence occurs I will go long and place targets at .382 fib retracement. Fib extensions fall on a support area that was last tested in march. Also an ABCD pattern will complete here. I expect some sort of reaction at this level. Lets see what happens