AUD JPY Short-term SELL
- A strong, perfect double bottom, with two pull backs, the first of which returns to the support line. On the point of the second pull back breaching the resistance box, there is a strong bearish candle, suggesting increasing bearish power in the market, and a downturn back towards the historically strong support line.
- RSI dips at this point indicating divergence and suggesting that this is becoming more 'undersold'.
HIGHLY UNLIKELY SCENARIO (ceteris paribus)
Naturally, there is a small risk of reversal, although this could be a fake reversal (therefore, the stoploss is positioned at the edge of the resistance box). The dashed line indicates the point at which a buy order can be placed - as this suggests the reversal is not fake, and it will be a breakout away from the resistance line set to skyrocket for some time.
Note
The 'highly unlikely scenario' became true 😂. If a buy order was placed on the dashed line, as suggested, profit would have been higher than loss of the initial sell order hitting stop loss. A strong reminder its impossible to predict the market but using tools such as buy orders can mean you maintain a profit!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.