From the chart I've shared, here's a breakdown of the *pattern and tools* being used:
---
### *Pattern:*
This looks like a *falling wedge pattern*, which is typically a bullish reversal pattern. Here's why:
- The price is compressing between two downward-sloping trendlines.
- There's a breakout projected to the upside, which is consistent with a wedge breakout.
- The bottom shows multiple touches (marked by blue arrows), suggesting a strong support zone.
There’s also:
- *Double bottom formation* near the support zone, which reinforces the bullish bias.
- *Resistance zone* at the top (around 95.5 - 96.0), where previous price rejections occurred.
---
### *Tools Used:*
1. *Trendlines* – To form the wedge and channels.
2. *Support & Resistance zones* – Marked with horizontal lines and colored regions (highlighted in red and blue).
3. *Fibonacci zone or supply-demand areas* – Highlighted areas (likely used for identifying reaction zones).
4. *Arrows and labels* – To indicate changes in character (CHOCH), break of structure (BOS), and key reactions.
5. *Moving averages* – Blue and red lines following the price action.
6. *Path prediction (dotted arrow)* – Suggests a potential move based on the breakout from the wedge.
7. *Candlestick chart* – On a 4-hour timeframe (as indicated top-left).
---
This analysis suggests a bullish outlook for *AUD/JPY* with a potential upside target around the 94.5 - 95.7 region after a breakout from the wedge pattern.
Do you want a more detailed breakdown of the current market structure or an idea on where to place entries/stops?
---
### *Pattern:*
This looks like a *falling wedge pattern*, which is typically a bullish reversal pattern. Here's why:
- The price is compressing between two downward-sloping trendlines.
- There's a breakout projected to the upside, which is consistent with a wedge breakout.
- The bottom shows multiple touches (marked by blue arrows), suggesting a strong support zone.
There’s also:
- *Double bottom formation* near the support zone, which reinforces the bullish bias.
- *Resistance zone* at the top (around 95.5 - 96.0), where previous price rejections occurred.
---
### *Tools Used:*
1. *Trendlines* – To form the wedge and channels.
2. *Support & Resistance zones* – Marked with horizontal lines and colored regions (highlighted in red and blue).
3. *Fibonacci zone or supply-demand areas* – Highlighted areas (likely used for identifying reaction zones).
4. *Arrows and labels* – To indicate changes in character (CHOCH), break of structure (BOS), and key reactions.
5. *Moving averages* – Blue and red lines following the price action.
6. *Path prediction (dotted arrow)* – Suggests a potential move based on the breakout from the wedge.
7. *Candlestick chart* – On a 4-hour timeframe (as indicated top-left).
---
This analysis suggests a bullish outlook for *AUD/JPY* with a potential upside target around the 94.5 - 95.7 region after a breakout from the wedge pattern.
Do you want a more detailed breakdown of the current market structure or an idea on where to place entries/stops?
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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.
Join Telegram Channel Free t.me/+lvC6DGTZAqk3NTI8 "Explore daily insights: 4/5 signals meticulously analyzed, ensuring an impressive 99% accuracy in forex & crypto trades t.me/+XHUwVU1EKek0Nzlk
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.