I entered a long position on the GBPJPY 15-minute chart, combining multiple confluences: RSI divergence and candlestick patterns. Here's the breakdown of my analysis:
RSI Divergence:
A bullish divergence is observed on the RSI, suggesting waning seller momentum and a potential reversal to the upside.
Candlestick Wicks in Buyers' Zone:
Long tail wicks are visible in the identified buyers' zone, an area where buyers previously drove the price from Point 1 to Point 2. This indicates strong demand and potential buyer activity.
Hypothesis:
If the buyers from Point 1 who successfully drove the price up to Point 2 are still active in this buyers' zone, they should be able to push the price upward again to the sellers' zone (Point 2 and Point 4).
Target:
The goal is to reach the sellers' zone, aligning with the previous resistance levels and supply area.
RSI Divergence:
A bullish divergence is observed on the RSI, suggesting waning seller momentum and a potential reversal to the upside.
Candlestick Wicks in Buyers' Zone:
Long tail wicks are visible in the identified buyers' zone, an area where buyers previously drove the price from Point 1 to Point 2. This indicates strong demand and potential buyer activity.
Hypothesis:
If the buyers from Point 1 who successfully drove the price up to Point 2 are still active in this buyers' zone, they should be able to push the price upward again to the sellers' zone (Point 2 and Point 4).
Target:
The goal is to reach the sellers' zone, aligning with the previous resistance levels and supply area.
Trade active
We are halfway our goal. Price pierced through the 193.4 area with a strong volatility candle, this is a great indication that buyers are determined to push price up. 
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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.