USDJPY showing some resistance at an important price level.
This is an example of a scenario where a range-trader might see some points of interest, some of them are listed below:
1- This drawn resistance around 112.000 is an important one, which has not been trespassed for the past 14 months (+-);
2- As we can observe, also, with the support of the indicators (Stoch + CCI), this might be an overbought zone;
3- If we zoom in, we will note, also, the volume of some of the previous buying candlesticks, which have been loosing strength.
What a range-trader should take into consideration when deciding to sell this asset:
1- Whether there is a strong doward (sell) candle been formed (in other words, whether the candle has little wick/shade and a comparatively big body/real body);
2- whether the volume of sellers is bigger than the volume of buyers, and whether the volume grows beyong the moving average, as shown on the graph;
3- finally, the indicators mentioned (CCI + Stoch) have to indicate a downward trend as well (in the inner region of both indicators).
The SL should be placed right above last hight price level.
Trade Responsably and follow me for more!
1- This drawn resistance around 112.000 is an important one, which has not been trespassed for the past 14 months (+-);
2- As we can observe, also, with the support of the indicators (Stoch + CCI), this might be an overbought zone;
3- If we zoom in, we will note, also, the volume of some of the previous buying candlesticks, which have been loosing strength.
What a range-trader should take into consideration when deciding to sell this asset:
1- Whether there is a strong doward (sell) candle been formed (in other words, whether the candle has little wick/shade and a comparatively big body/real body);
2- whether the volume of sellers is bigger than the volume of buyers, and whether the volume grows beyong the moving average, as shown on the graph;
3- finally, the indicators mentioned (CCI + Stoch) have to indicate a downward trend as well (in the inner region of both indicators).
The SL should be placed right above last hight price level.
Trade Responsably and follow me for more!