EURJPY Triangular Expansion Downtrend April 13, 2017 , Thursday
Observation:
116.09 is a level where price favorite breaking out of a trend.
Bears are in control of the market with previous lower lows and lower highs.
Analysis:
If price respect small upward channel
a great drop will happen and reach the next support level at 112.22
Conclusion:
Short now if aggressive
Short at retracement when price hits dynamic resistance of upward channel for a tighter stop loss if conservative.
Put trailing stop if chart shows strong downward bars.
116.09 is a level where price favorite breaking out of a trend.
Bears are in control of the market with previous lower lows and lower highs.
Analysis:
If price respect small upward channel
a great drop will happen and reach the next support level at 112.22
Conclusion:
Short now if aggressive
Short at retracement when price hits dynamic resistance of upward channel for a tighter stop loss if conservative.
Put trailing stop if chart shows strong downward bars.
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Lesson learned:
As price just out of the channel unexpectedly near the market closing day FRIDAY when people overreact on what will happen on Monday (many traders fear that market will be volatile on the weekend so these traders sell their position for safety), this unexpected drop on Friday cause market to be greedy and saw it was an opportunity to buy low price & with herd mentality, as domino effect, price may sour very high.
As price just out of the channel unexpectedly near the market closing day FRIDAY when people overreact on what will happen on Monday (many traders fear that market will be volatile on the weekend so these traders sell their position for safety), this unexpected drop on Friday cause market to be greedy and saw it was an opportunity to buy low price & with herd mentality, as domino effect, price may sour very high.
Observation:
Price have broken from strong support area at 116.10
Price have broken Triangular Expansion.
Price have broken Upward Channel Dynamic support.
Analysis:
Price wants to test support area at 112.16
Conclusion:
Place SHORT and TP at support area.