Possible Buy Setup On AudJpy
We have an interesting setup forming on AudJpy. On the larger timeframes, we could see that price is trending upwards through a bullish channel. We have just recently rejected off of the non-horizontal support level and created some uptrend structure (higher high, higher lows) after the correction movement. Now, I've identified two levels of significance. One is more noticeable on the H1 timeframe, and the other is more noticeable on the H4/D. I've labeled both to distinguish the difference.
As for validity of the levels, I usually tend to resort to the level most visible on the higher timeframes (aka H4). The levels on the higher timeframes seem to just hold more significance and work really well when you're able to identify them. I would consider the H1 level, more of a "minor zone", while the H4 level is a "major zone."
As far as analysis goes, price has just recently broken the minor zone and retested it on the lower timeframes. If you're eager to enter a trade, this entry wouldn't be a bad idea. But as for me, I'm going to wait for extra bullish confirmation by waiting for price to break through the major zone. This will certainly show a sign of strength for the pair, and I'll wait for the retest before executing longs. Enter at your own risk!
As for validity of the levels, I usually tend to resort to the level most visible on the higher timeframes (aka H4). The levels on the higher timeframes seem to just hold more significance and work really well when you're able to identify them. I would consider the H1 level, more of a "minor zone", while the H4 level is a "major zone."
As far as analysis goes, price has just recently broken the minor zone and retested it on the lower timeframes. If you're eager to enter a trade, this entry wouldn't be a bad idea. But as for me, I'm going to wait for extra bullish confirmation by waiting for price to break through the major zone. This will certainly show a sign of strength for the pair, and I'll wait for the retest before executing longs. Enter at your own risk!
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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.