USDJPY Short From H1 Supply Zone ( + 3,7 RR)
A clean trade on US Dollar vs Japanese Yen was taken on December 5th and here is it's full breakdown:
We see an example of Drop-Base-Drop market movement. We took a Base of this movement as an Supply zone and went into shorts with the goal at the local low, because:
1) Fibo discount level (0.62)
2) Clean supply zone
3) Correlator DXY was showing short signal too
4) Supply zone on a resistance level
5) Imbalance to fill in
6) Price tapped the zone on a EU session
7) RSI divergence on M30
The TP wasn't lower due to the premium zone and more imbalance laying above. Typically, we wouldn't take this trade due to this factor, but all 7 reasons were solid and we were right.
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We see an example of Drop-Base-Drop market movement. We took a Base of this movement as an Supply zone and went into shorts with the goal at the local low, because:
1) Fibo discount level (0.62)
2) Clean supply zone
3) Correlator DXY was showing short signal too
4) Supply zone on a resistance level
5) Imbalance to fill in
6) Price tapped the zone on a EU session
7) RSI divergence on M30
The TP wasn't lower due to the premium zone and more imbalance laying above. Typically, we wouldn't take this trade due to this factor, but all 7 reasons were solid and we were right.
If you like such type of content with explanation, like this post and leave a comment!