Bounce of Resistance & Bearish Divergence --> Short on H4
On the H4 graph of USDJPY, price was not able to break resistance (113.130) to the upside. Price compared to RSI also shows Bearish Divergence.
A possible trade setup could be:
- Short 3 small positions with SL above the resistance of 113.130 (111.3 for example)
- TP1: 112
- TP2: 111.7
- TP3: 111.1
- Once TP1 is hit, move SL of the remaining positions to entry or use a trailing stop.
You could also say that when TP2 is hit, you move SL from positon 3 to TP1, to secure your profits.
On the longer term (weekly and daily chart) a Triangle is forming, to break either the upside or downside might take quite a while.
If you have any questions or comments, feel free to let me know!
Happy Trading!
For more trading ideas, feel free to join: t.me/TradeID
A possible trade setup could be:
- Short 3 small positions with SL above the resistance of 113.130 (111.3 for example)
- TP1: 112
- TP2: 111.7
- TP3: 111.1
- Once TP1 is hit, move SL of the remaining positions to entry or use a trailing stop.
You could also say that when TP2 is hit, you move SL from positon 3 to TP1, to secure your profits.
On the longer term (weekly and daily chart) a Triangle is forming, to break either the upside or downside might take quite a while.
If you have any questions or comments, feel free to let me know!
Happy Trading!
For more trading ideas, feel free to join: t.me/TradeID