NZDJPY short trade
Pre-Analysis:-
- Possible sign of weakness on NZDJPY, looking for short.
- It shows potential buying climax with widespread up bar closing in the middle. Volume ultra high.
- Price broke the lower part of climatic bar and retest it back that area on 9 Nov 2021.
- Find an entry that shows sign of weakness in 15 minutes timeframe.
Entry:-
- Probably a no demand up bar appear as shown on the chart. Next bar was an upthrust.
- Entry when price drop below the upthrust bar.
Post Analysis:-
- The first entry did not do much, price stayed around entry for quite a long period. This may entice me to close the trade or move the stop to breakeven.
- Then during NY session another no demand bar appear this time with low volume and accompanied by an upthrust bar after that.
- Trade can be taken at lower than upthrust bar.
- In this case max profit around 3.79R.
- Another information to support this trade was trending system shows it is in downtrend so it possible to take a short trade. Trending system shows on the chart below.
- The hourly chart trending system still down, thus it support the short trade.