AUD JPY Short-term SELL
Updated
- 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.
Comment
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!
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