USDJPY produced an H4 bearish engulfing candle at a key level of resistance. Last Friday’s candle came out as a Spinning Top. Moreover, today’s first and second H4 candle seems to be very bearish having rejection from the same level of resistance. Thus, if the price continues to go towards the South and makes a breakout at Friday’s lowest low, then we may get an opportunity to go short on the pair. Let us have a look at the H4 USDJPY chart.
This trade idea was generated by our powerful Elite Swing Trader System.
The level of 108.015 has been working as intraday resistance. The level has already produced two bearish candles. The level of 107.800 is the lowest low of Friday’s candle. The level is to be breached by an H4 candle first and the very next candle is to be closed within the breakout candle. If these two conditions are met, an H1 bearish engulfing candle right at the level of 107.800 would be the signal to go short on the pair. Let us have a look at the summary of the trade…
- Entry: H1 bearish engulfing candle at the pullback
- Stop Loss: Above 108.015
- Take Profit: 107.080
Taking an entry on a pullback is the safest way to trade. Pullback offers better risk and reward ratio and winning percentage. It attracts more traders. Thus, it gets more liquidity, so Take Profit level gets hit quickly as well. However, we need to be immaculate on pullback reversal as well as Take Profit level. Pullback reversal level is where the price makes the breakout, but Take Profit level varies. It needs a lot of practice. To start with, count a significant level of swing high or swing low to set your Take Profit level.
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The post Free Forex Trade Signals USDJPY – 30th Sept 2019 appeared first on Advanced Forex Strategies.
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