Trade Idea: Decision Time For The Bears On CADJPY
Important note on charts:
It’s imperative to your trading success, you are trading with a broker that offers “New York Close Forex Charts” where each daily candle opens and closes at 5 pm EST. This is essential with trading price action correctly.
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All my trade setups provided, is not advice or a recommendation to trade or invest. It is solely for educational and general information only.
Don’t blindly buy or sell the Forex markets discussed in this trade setup. Do your own research and always be aware of the risks and rewards.
Potential Trade Setup: Decision Time For The Bears On CADJPY
All charts I provide are of the Daily time frame unless stated otherwise: This potential setup is on the 4-hour chart.
Trend: Very Bearish
Key Levels: Broken key level 80.91 with expecting this to hold as a new resistance.
Price Action Signal: Awaiting a retest of the broken key level and descending channel top for a price action signal
Chart Notes: The CADJPY broke the Daily key level 80.91 and has now made a retrace back to this key level.
With price approaching a 4-hour descending channel, could be a strong possibility of the next bearish move on this pair.
With a strong bearish bias that remains intact on both the 4-hour and Daily time frames.
Potential Trade Idea:
I am considering selling this pair again if the broken key level of 80.91 holds as a new resistance.
I will be looking for a strong bounce of this key level with a nice bearish reversal candlestick pattern, on the 4-hour time frame.
This setup has plenty of free space, giving the trade idea room to head lower of the key level and descending channel top for a very good risk to reward.
With a first potential target being the last daily lows. Should give me at least a 1-1 first target, then a further target the descending channel bottom.
I can’t stress enough here, that patient and discipline is the key to any successful trader.
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Now is your turn:
How are you planning this setup? What are you looking for to catch the next bullish move with this pair? Just leave any question or comments below.
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