AUDJPY - 3 Possible Scenarios
Here we have 3 possible scenarios of price continuation.
On bigger picture (timeframe) we are continuing up from bullish
correction, or still continuing inside that correction phase.
-
Scenario 1:
-Bullish trend on higher timeframe with clear Bull Flag continuation pattern
-2 hits to Bull Flag patterns upper trendline
-3rd near hit of same trendline, which means there is high chance that price will test the trendline again and break it
Here we enter on:
-Break of upper trendline to up
or for less risky entry
-Break AND retest of same trendline to up
-
Scenario 2:
-Price will test same upper trendline of Bull Flag but is rejected and goes down
-After that price will be rejected at 92.300 - 92.400 area and shows clear sign of reversal to up
Here we enter on:
-For short: Break of local bullish trendline / break+retest for less risky entry
-For long: Clear rejection with reversal candles + patterns on lower TF on 92.300 area
-
Scenario 3:
-Price will test same upper trendline of Bull Flag but is rejected and goes down.
-After that price will continue down to 92.300 - 92.400 area, but after correction does not show any signs of reversal
-Price breaks below level and continues more to downside
Here we enter on:
-Break of local bullish trendline / break+retest for less risky entry
or
-Break below 92.300 -92.400 area / again break+retest for less risky entry
This is just idea, not trading advice, use at own risk.
On bigger picture (timeframe) we are continuing up from bullish
correction, or still continuing inside that correction phase.
-
Scenario 1:
-Bullish trend on higher timeframe with clear Bull Flag continuation pattern
-2 hits to Bull Flag patterns upper trendline
-3rd near hit of same trendline, which means there is high chance that price will test the trendline again and break it
Here we enter on:
-Break of upper trendline to up
or for less risky entry
-Break AND retest of same trendline to up
-
Scenario 2:
-Price will test same upper trendline of Bull Flag but is rejected and goes down
-After that price will be rejected at 92.300 - 92.400 area and shows clear sign of reversal to up
Here we enter on:
-For short: Break of local bullish trendline / break+retest for less risky entry
-For long: Clear rejection with reversal candles + patterns on lower TF on 92.300 area
-
Scenario 3:
-Price will test same upper trendline of Bull Flag but is rejected and goes down.
-After that price will continue down to 92.300 - 92.400 area, but after correction does not show any signs of reversal
-Price breaks below level and continues more to downside
Here we enter on:
-Break of local bullish trendline / break+retest for less risky entry
or
-Break below 92.300 -92.400 area / again break+retest for less risky entry
This is just idea, not trading advice, use at own risk.
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