Working from the bigger timeframe down, the Yen has been increasing in strength which has bearish implications for this pair.
Seeing the hundreds of pips we lost last month I'm still sure the sellers have some energy left. Although we have been up trending for a few weeks, I believe the uptrend needs to catch it's breath.
They say greed is what destroys traders, while there is in truth in that. I think greed is the real reason we all play this game. We are all in this because we want to make money.
With that being said my goal is to enter with the tightest stop losses, and milk the profits for every pip I can get. All with the goal to minimize risk and maximize return. Some may look at a 10:1 return and think it is not possible, but it very well is, trading is about your mental limitation. My goal to challenge the status quo of what we as traders believe is possible.
And there is a pretty good opportunity for that here.
On the 6HR Chart on the left you will see that we are losing volume as price climbs, meaning people are starting to lose interest, if people are losing interest how are the brokers going to make money? They won't. (They make money if people are placing trades). A drop in price to lure in traders is most likely the next step in this market cycle.
We also have a Three Drives Pattern (Reversal) occurring at Daily Resistance. We should be seeing a reversal somewhere between the 1.27-1.618 Extension of the #2 Blue Leg. 83-84.
Now, On the 1HR Chart we had a Bearish Bat Complete yesterday, and have another one possibly forming to go short yet again, I will be looking for the pattern to complete. The stop loss and take profits should be adjusted as the trade plays out, I have my entry criteria listed above. If I enter this I'll be looking for the 61.8% Fib to be fulfilled from the AD Leg, but I will keep in mind that this entry might be the top of a 6HR reversal and could very well drop all the way down another 100 pips.
This is all IF we even enter on this pattern, it might not even come back up again.
One last thrust up would convince me even more to go short as we squeeze the last set of buyers out of this phase.
-G
Seeing the hundreds of pips we lost last month I'm still sure the sellers have some energy left. Although we have been up trending for a few weeks, I believe the uptrend needs to catch it's breath.
They say greed is what destroys traders, while there is in truth in that. I think greed is the real reason we all play this game. We are all in this because we want to make money.
With that being said my goal is to enter with the tightest stop losses, and milk the profits for every pip I can get. All with the goal to minimize risk and maximize return. Some may look at a 10:1 return and think it is not possible, but it very well is, trading is about your mental limitation. My goal to challenge the status quo of what we as traders believe is possible.
And there is a pretty good opportunity for that here.
On the 6HR Chart on the left you will see that we are losing volume as price climbs, meaning people are starting to lose interest, if people are losing interest how are the brokers going to make money? They won't. (They make money if people are placing trades). A drop in price to lure in traders is most likely the next step in this market cycle.
We also have a Three Drives Pattern (Reversal) occurring at Daily Resistance. We should be seeing a reversal somewhere between the 1.27-1.618 Extension of the #2 Blue Leg. 83-84.
Now, On the 1HR Chart we had a Bearish Bat Complete yesterday, and have another one possibly forming to go short yet again, I will be looking for the pattern to complete. The stop loss and take profits should be adjusted as the trade plays out, I have my entry criteria listed above. If I enter this I'll be looking for the 61.8% Fib to be fulfilled from the AD Leg, but I will keep in mind that this entry might be the top of a 6HR reversal and could very well drop all the way down another 100 pips.
This is all IF we even enter on this pattern, it might not even come back up again.
One last thrust up would convince me even more to go short as we squeeze the last set of buyers out of this phase.
-G
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Each week, I send an email breakdown of the best forex setups, watch zones, and market trends so you can trade with confidence.
Your next setup is waiting—Subscribe for access to my weekly outlooks.
Your next setup is waiting—Subscribe for access to my weekly outlooks.
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.