USD/JPY has reached a critical liquidity zone above resistance, setting up a strategic sell limit opportunity. This price action indicates that the market has cleared stop-losses and may be poised for a bearish reversal.
Key Observations:
Liquidity Grab: Price spiked above a key resistance level, triggering stop-losses and trapping breakout buyers.
Market Structure: Early signs of bearish rejection and weakening momentum suggest potential downside movement.
Optimal Entry: A sell limit at [specific price level] aligns with the liquidity sweep and anticipated reversal zone.
Trade Plan:
Entry: Sell limit at [specific level], targeting a reversal from the liquidity zone.
Stop Loss: Above the recent liquidity sweep to account for market volatility.
Take Profit: Targeting support levels around [specific levels] to maximize the risk-reward ratio.
Risk Management:
This setup leverages the liquidity grab to identify a high-probability trade. Employ strict risk management and ensure proper position sizing. Monitor for confirmation of bearish intent before executing.
Key Observations:
Liquidity Grab: Price spiked above a key resistance level, triggering stop-losses and trapping breakout buyers.
Market Structure: Early signs of bearish rejection and weakening momentum suggest potential downside movement.
Optimal Entry: A sell limit at [specific price level] aligns with the liquidity sweep and anticipated reversal zone.
Trade Plan:
Entry: Sell limit at [specific level], targeting a reversal from the liquidity zone.
Stop Loss: Above the recent liquidity sweep to account for market volatility.
Take Profit: Targeting support levels around [specific levels] to maximize the risk-reward ratio.
Risk Management:
This setup leverages the liquidity grab to identify a high-probability trade. Employ strict risk management and ensure proper position sizing. Monitor for confirmation of bearish intent before executing.
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.
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.