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Head and Shoulders

Potential BOJ Intervention and Technical Setups on USDJPYIf you haven't heard the latest news, Japan's Finance Minister and the BOJ have differing views on the intervention of the Japanese Yen. The Finance Minister believes that FX intervention didn't work, while the BOJ has stated they are prepared to intervene at any time and could catch the market by surprise. Having traded for 18 years, I'm quite familiar with what a market intervention looks like. If you believe the BOJ will intervene, then there are some interesting technical setups to consider. Analysis: 1-Hourly Chart: - Potential Head and Shoulders Formation: This pattern could signal a bearish reversal. 15-Minutes Chart: - Bearish Shark Pattern Checkback: This setup allows us to capture similar targets with lower initial risk. Strategy: 1. Head and Shoulders Formation: - Monitor for Pattern Completion: Watch for the right shoulder formation and neckline break. - Entry: On confirmation of the neckline break. - Stop-Loss: Above the right shoulder. - Target: Based on the height of the pattern projected downwards. 2. Bearish Shark Pattern Checkback: - 15-Minutes Timeframe: - Entry: Look for entry on the checkback of the Bearish Shark Pattern. - Stop-Loss: Above the high of the checkback. - Target: Aligns with the target from the head and shoulders pattern on the 1-hourly chart, allowing for a lower initial risk. Key Points: - BOJ Intervention: The potential for surprise intervention by the BOJ adds a fundamental catalyst to these technical setups. - Risk Management: Ensure proper stop-loss placement to manage risk effectively. - Confirmation: Always wait for confirmation of the patterns before entering trades. What’s your take on USDJPY and the potential for BOJ intervention? Do you see any additional opportunities or setups? Share your thoughts and strategies below!
Short
by RaynLim
Do you think the Gold's reverse HS will breakout.It will be an interesting week for XAUUSD. 1. **Key Level 2330**: This level is crucial as it could initiate a chain reaction. A break here would confirm a double bottom "W". 2. **Possible Breakout**: Gold has been in a downward channel since May 20th. A breakout above the blue line would complete the Reverse Head and Shoulders formation at TP level 2365. Technically, it’s structured for a move to 2365. However, with significant economic news this week, including the Fed Chair's speech on Tuesday, caution is advised.
PEPPERSTONE:XAUUSDLong
by Tuksmila
2
Alikze »» BCH | Head and shoulders pattern scenario🔍 Technical analysis: Head and shoulders pattern scenario - It is moving in a medium-term ascending channel. - But now, due to the structural correction, it is moving in a short-term downward channel. - Currently, due to the breakdown of the structure and the downward slope, as well as the movement in a short-term downward channel, it can continue with the pullback to the broken structure and the supply zone to the origin of the correction movement. - Therefore, it can continue the correction with a retest up to the ceiling of the short-term descending channel and the supply area and complete the last leg up to the 250 range by breaking the major ceiling. 💎 Alternative scenario: if it can break the supply zone, the first target will be the $500 range, which can be considered as a pullback to the major ceiling. »»»«««»»»«««»»»««« Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support. Best Regards,❤️ Alikze. »»»«««»»»«««»»»«««
Short
by alikze
$TSLA #Tesla Inverse Head & ShouldersNASDAQ:TSLA #Tesla Inverse Head & Shoulders The Inverse Head & Shoulders pattern is a popular technical analysis indicator used to predict a reversal in a downtrend. Here's a description: ### Inverse Head & Shoulders Pattern The Inverse Head & Shoulders pattern is a bullish reversal pattern that often marks the end of a downtrend and the beginning of an uptrend. It consists of three main components: two shoulders and a head, formed by three successive troughs with the middle trough (head) being the deepest. #### Key Features: 1. **Left Shoulder:** - The price declines to a new low and then rises to form a peak. 2. **Head:** - The price falls again, creating an even lower trough (the head), and then rises once more. 3. **Right Shoulder:** - The price declines for a third time but does not fall as low as the head, forming the right shoulder, before rising again. 4. **Neckline:** - A horizontal or slightly upward-sloping line drawn through the peaks between the left shoulder, head, and right shoulder. This line acts as a resistance level. #### Trading the Pattern: - **Identification:** - Look for a clear formation of the left shoulder, head, and right shoulder during a downtrend. - **Neckline Break:** - The pattern is confirmed once the price breaks above the neckline. This breakout signals a potential reversal and is considered a buying opportunity. - **Volume:** - Volume typically decreases as the pattern forms and then increases on the breakout above the neckline, adding validity to the reversal. #### Measuring the Target: - **Price Target:** - The projected price target is typically calculated by measuring the distance from the bottom of the head to the neckline and then adding this distance to the breakout point at the neckline. #### Example: If the bottom of the head is at $50, the neckline is at $60, the difference is $10. If the price breaks the neckline at $60, the target price would be $70 ($60 + $10). ### Summary The Inverse Head & Shoulders pattern is a reliable indicator used by traders to identify potential reversals from bearish to bullish trends. When identified correctly, it provides a clear signal to enter long positions, aiming for the measured target based on the pattern's structure.
NASDAQ:TSLALong
by AlgoTradeAlert
5