Hi Traders,
GBP/JPY is showing me some interesting Price action. When looking to the left where the red arrows are, You will see that price has created some sort of Double Top. When looking at how Price has been moving you will see that it has broken the neckline without retesting it.
Moving along Price has come back to the Neckline where it is currently trading around 166.400. What catches my attention is that we have potentially made a fake-out where Price has broken above resistance, and now, seems it is more likely to close back in the range.
In my experience, If we have a valid fake-out price tends to move extremely fast once the fake-out has occurred. So there is a chance that I might miss my entry criteria for this trade. I will wait for Price to close or even go as far as trying to find an entry on a lower timeframe if it meets my entry criteria.
If this candle closes back above the resistance I will no longer be interested in this short.
Trade safe and trade smart.
Renaldo Philander
GBP/JPY is showing me some interesting Price action. When looking to the left where the red arrows are, You will see that price has created some sort of Double Top. When looking at how Price has been moving you will see that it has broken the neckline without retesting it.
Moving along Price has come back to the Neckline where it is currently trading around 166.400. What catches my attention is that we have potentially made a fake-out where Price has broken above resistance, and now, seems it is more likely to close back in the range.
In my experience, If we have a valid fake-out price tends to move extremely fast once the fake-out has occurred. So there is a chance that I might miss my entry criteria for this trade. I will wait for Price to close or even go as far as trying to find an entry on a lower timeframe if it meets my entry criteria.
If this candle closes back above the resistance I will no longer be interested in this short.
Trade safe and trade smart.
Renaldo Philander