USDJPY [Short] Triangular Contraction
Observation:
1 - Small Triangular Contraction , it starter with a strong uptrend, then a triangular contraction, price action was then ascending which pushed the price higher.
2 - Big Triangular Contraction, the continuation of the uptrend
3 - Indecision was seen at the shortage zone, meaning shortage zone is significant zone which will be again tested and possible breakout.
4 - Sign of downtrend
5 - 1st test of shortage zone
6 - 2nd test of shortage zone (or the last kiss)
7 - High probability of breakout, summary movement of price action inside the triangular contraction was in descending order. If price action was in normal sideways trend, probability of downtrend would be low, but in different scenario where it is in triangular contraction, high probability of downtrend when it always test the dynamic support.
8 - Price Action stop at new Shortage Zone,
Prediction
IF:
9 - Price Action would move to 113.706 (doji sign) indecision, 2 possibility
9a - Uptrend till 114.103, price equilibrium for a moment then push back uptrend till it hit 114.767 and up till 115.372
9b - Downtrend till 112.802, price equilibrium for a moment then push back downtrend till 112.054
1 - Small Triangular Contraction , it starter with a strong uptrend, then a triangular contraction, price action was then ascending which pushed the price higher.
2 - Big Triangular Contraction, the continuation of the uptrend
3 - Indecision was seen at the shortage zone, meaning shortage zone is significant zone which will be again tested and possible breakout.
4 - Sign of downtrend
5 - 1st test of shortage zone
6 - 2nd test of shortage zone (or the last kiss)
7 - High probability of breakout, summary movement of price action inside the triangular contraction was in descending order. If price action was in normal sideways trend, probability of downtrend would be low, but in different scenario where it is in triangular contraction, high probability of downtrend when it always test the dynamic support.
8 - Price Action stop at new Shortage Zone,
Prediction
IF:
9 - Price Action would move to 113.706 (doji sign) indecision, 2 possibility
9a - Uptrend till 114.103, price equilibrium for a moment then push back uptrend till it hit 114.767 and up till 115.372
9b - Downtrend till 112.802, price equilibrium for a moment then push back downtrend till 112.054
Comment:
A better prediction has fewer moves. I will adapt this in my next strategy. I should have short and place stop loss rather than wait for the market to follow my prediction.
Trade closed: target reached