USDJPY showing some resistance at an important price level.
This is an example of a scenario where a range-trader might see some points of interest, some of them are listed below:
1- This drawn resistance around 112.000 is an important one, which has not been trespassed for the past 14 months (+-);
2- As we can observe, also, with the support of the indicators (Stoch + CCI), this might be an overbought zone;
3- If we zoom in, we will note, also, the volume of some of the previous buying candlesticks, which have been loosing strength.
What a range-trader should take into consideration when deciding to sell this asset:
1- Whether there is a strong doward (sell) candle been formed (in other words, whether the candle has little wick/shade and a comparatively big body/real body);
2- whether the volume of sellers is bigger than the volume of buyers, and whether the volume grows beyong the moving average, as shown on the graph;
3- finally, the indicators mentioned (CCI + Stoch) have to indicate a downward trend as well (in the inner region of both indicators).
The SL should be placed right above last hight price level.
Trade Responsably and follow me for more!
1- This drawn resistance around 112.000 is an important one, which has not been trespassed for the past 14 months (+-);
2- As we can observe, also, with the support of the indicators (Stoch + CCI), this might be an overbought zone;
3- If we zoom in, we will note, also, the volume of some of the previous buying candlesticks, which have been loosing strength.
What a range-trader should take into consideration when deciding to sell this asset:
1- Whether there is a strong doward (sell) candle been formed (in other words, whether the candle has little wick/shade and a comparatively big body/real body);
2- whether the volume of sellers is bigger than the volume of buyers, and whether the volume grows beyong the moving average, as shown on the graph;
3- finally, the indicators mentioned (CCI + Stoch) have to indicate a downward trend as well (in the inner region of both indicators).
The SL should be placed right above last hight price level.
Trade Responsably and follow me for more!
כתב ויתור
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