Hey guys, this is an update to the EURJPY setup I posted last week.
We are right there at the bottom of the triangle.
What is interesting to me is the formation of an RSI bamm at Friday's closing price.
Pattern Identification
RSI Bamm at bottom of triangle.
RSI Bamm is the formation of a W/M structure at RSI oversold/overbought where this is considered a prelude to a potential end of trend.
A W/M structure, followed by a retracement to the 50% level of the RSI indicator and a final retest at oversold/overbought will be considered a potential buy/sell opportunity.
Trade Execution Next week, I will watch out for a move up out of the RSI oversold zone for EURJPY to initiate a buy.
SL will be below the low of Friday.
I am aiming at 119.50 for TP where the higher boundary of the triangle is at.
If EURJPY continues lower on Monday, this trade trade will be invalid and we will look for other opportunities to trade this pair.
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Not ready yet, I will wait for another retest of lows.
Hi terry, I don't quite understand. if RSI show oversold, why look to buy? wouldn't price retrace till RSI undersold? are you looking at swing buy? would you updating EP price also?
TerryHarmonicTrading
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@marcus1983, rsi bamm hints at a potential trend reversal. Right now, the H1 rsi still shows rsi bamm, I need to wait for a final test where there is no W structure formed below the oversold and buy when it gets out of the zone. My recommendation is to read Vol 2 of Scott Carney's Harmonic trading.
marcus1983
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Hi terry, where do i read or find the reference of -0.66%? RSI, what are your perimeters settings? Just to be consistent with u
TerryHarmonicTrading
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@marcus1983, it's just the normal rsi 14. The default one.