The rising wedge chart pattern and the bearish divergence. On the daily time frame chart of USDJPY, the price trend is moving in a different direction from the Oscilator(RSI).
The rising wedge chart pattern is a bearish reversal chart pattern found at the top of a trend, this is indicating price reversal to the down side.
The breakout can be in any direction but is downward 70% of the time and most importantly, the pattern confirms as a valid one when price closes outside one of the trendlines.
The bearish divergence also spotted on the same time frame. The bearish divergence occurs when price makes a higher high but the indicator forms lower highs. The two data streams diverge in direction. Price will eventually, usually, follow the indicator lower.
These two bearish pattern found on USDJPY shows price will pull back. Traders need to keep the following levels at the back of there mind:
Breakdown level: 108.349
Support 1: 107.978
Support 2: 107.372
Support 3: 106.471.
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice and happy new months guy.
The rising wedge chart pattern is a bearish reversal chart pattern found at the top of a trend, this is indicating price reversal to the down side.
The breakout can be in any direction but is downward 70% of the time and most importantly, the pattern confirms as a valid one when price closes outside one of the trendlines.
The bearish divergence also spotted on the same time frame. The bearish divergence occurs when price makes a higher high but the indicator forms lower highs. The two data streams diverge in direction. Price will eventually, usually, follow the indicator lower.
These two bearish pattern found on USDJPY shows price will pull back. Traders need to keep the following levels at the back of there mind:
Breakdown level: 108.349
Support 1: 107.978
Support 2: 107.372
Support 3: 106.471.
Good luck to everyone! Click the follow button to stay tuned for more trading ideas! Like the idea? Hit the like button!
Ideas published should not be referred to as an investment advice and happy new months guy.