AUD/JPY - LONG SMC - taking liquidity
Date: 24/03/2023
Technical Analysis:
The market is in a downtrend in the 4-hour timeframe, breaking all the liquidity levels and taking liquidity.
There is an engulfing pattern identified in the 4-hour timeframe, indicating that buyers are ready to step in after the liquidity-taking.
There is a weekly and daily support zone close to being broken, which may indicate a fake breakout and the possibility of a pullback. This is also supported by the liquidity levels and demand zone.
Trade Plan:
Take Profit Target 1: 2/1 Risk Reward.
Take Profit Target 2: -0.61% Fibonacci retracement level (3.5/1 Risk Reward).
Stop Loss: Placed above the last lower made.
Risk per trade: 0.5% of capital due to it being a Friday and a counter-trend trade.
Please note that this is a professional and clear trade plan for informational purposes only. It is important to conduct your own research and analysis before making any trading decisions. Additionally, please always remember to manage your risk carefully and never risk more than you can afford to lose.
Technical Analysis:
The market is in a downtrend in the 4-hour timeframe, breaking all the liquidity levels and taking liquidity.
There is an engulfing pattern identified in the 4-hour timeframe, indicating that buyers are ready to step in after the liquidity-taking.
There is a weekly and daily support zone close to being broken, which may indicate a fake breakout and the possibility of a pullback. This is also supported by the liquidity levels and demand zone.
Trade Plan:
Take Profit Target 1: 2/1 Risk Reward.
Take Profit Target 2: -0.61% Fibonacci retracement level (3.5/1 Risk Reward).
Stop Loss: Placed above the last lower made.
Risk per trade: 0.5% of capital due to it being a Friday and a counter-trend trade.
Please note that this is a professional and clear trade plan for informational purposes only. It is important to conduct your own research and analysis before making any trading decisions. Additionally, please always remember to manage your risk carefully and never risk more than you can afford to lose.