Please see our above trade on Aud/Jpy posted on 21st November 2021 link below.
Lets break down why we took this trade and how you could have identified this the same.
Starting from the Daily timeframe we identified a daily descending channel which was broken and retested on September 21st. We then started a bullish move towards the previous swing high made on the 10th May 2021. This area was clearly rejected on the daily time frame and then exhaustion followed.
Moving down onto the 4hr chart.
We identified the 4hr ascending trend line that was keeping the bullish move alive and one which we would then use to give ourselves confluence that the bullish move had ended and we could be looking for short positions. After our ascending trend was broken this gave us more confluence and we then moved on to identifying so key market structure and some exhaustion.
This all took place straight out the textbook and we then used the EMA's and descending trend to capatilise on this move to the downside.
To see more set ups like this in advance give the page a follow and if you agree with our ideas hit the thumbs up. If you have a different view point leave a comment below, after all everyday is a learning day.
Have a wonderful weekend.
The Fx Chartist
Lets break down why we took this trade and how you could have identified this the same.
Starting from the Daily timeframe we identified a daily descending channel which was broken and retested on September 21st. We then started a bullish move towards the previous swing high made on the 10th May 2021. This area was clearly rejected on the daily time frame and then exhaustion followed.
Moving down onto the 4hr chart.
We identified the 4hr ascending trend line that was keeping the bullish move alive and one which we would then use to give ourselves confluence that the bullish move had ended and we could be looking for short positions. After our ascending trend was broken this gave us more confluence and we then moved on to identifying so key market structure and some exhaustion.
This all took place straight out the textbook and we then used the EMA's and descending trend to capatilise on this move to the downside.
To see more set ups like this in advance give the page a follow and if you agree with our ideas hit the thumbs up. If you have a different view point leave a comment below, after all everyday is a learning day.
Have a wonderful weekend.
The Fx Chartist