As I previously posted the USDJPY is suggesting a topping pattern but that was highly
speculative because there isn't enough evidence to support the idea that the USDJPY is in
a downward trend (lower highs and lower lows). BUT this setup though not conclusive is
a good setup to give us greater probability of being right that the USDJPY will turn down
for at least a decent trade of 100 pips or more. The idea is to sell the 1hr Stochastic RSI
moving below the 80% line and monitoring it until we can then switch over to the 4hr
time frame and leave it alone until the 4hr Stochastic RSI moves upwards past the 20%
signalling our BUY exit. This way we can maximize profits and have a mechanical system
tell us when to exit. As I mentioned in a tutorial the 4hr time frame tends to capture most of
a swing move as opposed to the 1hr.
speculative because there isn't enough evidence to support the idea that the USDJPY is in
a downward trend (lower highs and lower lows). BUT this setup though not conclusive is
a good setup to give us greater probability of being right that the USDJPY will turn down
for at least a decent trade of 100 pips or more. The idea is to sell the 1hr Stochastic RSI
moving below the 80% line and monitoring it until we can then switch over to the 4hr
time frame and leave it alone until the 4hr Stochastic RSI moves upwards past the 20%
signalling our BUY exit. This way we can maximize profits and have a mechanical system
tell us when to exit. As I mentioned in a tutorial the 4hr time frame tends to capture most of
a swing move as opposed to the 1hr.
Comment:
Those wicks are not looking very bearish. Bulls are trying to buy it up. I closed out short here. Maybe it falls further but I don't care.
