CADJPY - Sell Limit Pending

1 thg 9, 2017

Good morning friends!

As you can see from the title, during the night my sell limit order was taken on this pair.
In the picture you can see an H4 graph and a Daily one, respectively pro trend and counter trend. Confusing, isn't it?

Now I'm going to explain the organization of my trade.
As usual, I start from a Daily chart in order to have a complete analysis.
There, I can see a correction (in an up trend) which I reckon we can't call it this way anymore because it's too long, and breaks an important support (as I said yesterday in the EURGBP analysis, check it out, it's really interesting); so I go checking the H4, to use my "powerful magnifying glass" (lol) to see what's going on.
There, I see an uptrend, but attention, thanks to the power of multi-timeframe given to me, I know that could be a trap, because on the Daily chart we should have found a resistance, and, if price wanted to invert (I think it's just happening, maybe with a head and shoulders pattern formation), the bullish trend wouldn't have gone much further.
So, I set a Sell Limit Order right on that resistance, which was taken during the night (12 AM in Italy). Initially that seemed weak, because prices seem like they wanted to break that resistance, but now, they're slowing turning back.

As stop I used the left shoulder, because if prices break it, maybe there's some more power for un uptrend.
As target I used the bottom on the Daily chart, I don't want to exaggerate, if needed I will re enter the market.

Let me know what you think in the comments below :-)