AUD/JPY with Inverse H&S and Bullish M Pattern on 4H Chart
Updated
Title: "Analyzing AUD/JPY: Inverse Head and Shoulders Formation with Bullish M Pattern on 4-Hour Chart"
In the recent analysis of the AUD/JPY currency pair, a notable technical pattern has emerged on the 4-hour chart, presenting potential trading opportunities:
1. **Inverse Head and Shoulders Pattern (H&S):**
- The chart displays an inverse head and shoulders pattern, a bullish reversal formation.
- This pattern typically consists of three lows, with the middle low (the head) being lower than the two surrounding lows (the shoulders).
- The neckline, drawn across the highs between the shoulders, acts as a key resistance level. A breakout above this neckline often signals a bullish trend reversal.
2. **Bullish M Pattern:**
- Additionally, an M pattern has formed within the inverse head and shoulders pattern.
- This bullish M pattern is characterized by a sharp decline (the left side of the 'M'), followed by a higher low (the middle of the 'M'), and another decline with a subsequent higher low (the right side of the 'M').
- The completion of the M pattern suggests potential bullish momentum building, especially if accompanied by a breakout above the neckline of the inverse head and shoulders pattern.
3. **Inverse Cup and Handle Formation (IC):**
- Though not explicitly mentioned, an inverse cup and handle formation might also be inferred from the analysis.
- The 'cup' forms as the price reaches a high and retraces, followed by a 'handle' pattern where the price consolidates before attempting to break out.
- Similar to the inverse head and shoulders pattern, a breakout above the handle's resistance level confirms bullish sentiment.
Traders may consider the following actions based on this analysis:
- **Entry:** Consider entering long positions on a confirmed breakout above the neckline of the inverse head and shoulders pattern or the handle of the inverse cup and handle pattern.
- **Stop-loss:** Place stop-loss orders below the pattern's neckline or handle to manage risk.
- **Target:** Set profit targets based on the height of the pattern, projected upwards from the breakout point, or by identifying key resistance levels ahead.
As always, it's essential to incorporate risk management strategies and consider additional technical indicators or fundamental factors before executing trades.
In the recent analysis of the AUD/JPY currency pair, a notable technical pattern has emerged on the 4-hour chart, presenting potential trading opportunities:
1. **Inverse Head and Shoulders Pattern (H&S):**
- The chart displays an inverse head and shoulders pattern, a bullish reversal formation.
- This pattern typically consists of three lows, with the middle low (the head) being lower than the two surrounding lows (the shoulders).
- The neckline, drawn across the highs between the shoulders, acts as a key resistance level. A breakout above this neckline often signals a bullish trend reversal.
2. **Bullish M Pattern:**
- Additionally, an M pattern has formed within the inverse head and shoulders pattern.
- This bullish M pattern is characterized by a sharp decline (the left side of the 'M'), followed by a higher low (the middle of the 'M'), and another decline with a subsequent higher low (the right side of the 'M').
- The completion of the M pattern suggests potential bullish momentum building, especially if accompanied by a breakout above the neckline of the inverse head and shoulders pattern.
3. **Inverse Cup and Handle Formation (IC):**
- Though not explicitly mentioned, an inverse cup and handle formation might also be inferred from the analysis.
- The 'cup' forms as the price reaches a high and retraces, followed by a 'handle' pattern where the price consolidates before attempting to break out.
- Similar to the inverse head and shoulders pattern, a breakout above the handle's resistance level confirms bullish sentiment.
Traders may consider the following actions based on this analysis:
- **Entry:** Consider entering long positions on a confirmed breakout above the neckline of the inverse head and shoulders pattern or the handle of the inverse cup and handle pattern.
- **Stop-loss:** Place stop-loss orders below the pattern's neckline or handle to manage risk.
- **Target:** Set profit targets based on the height of the pattern, projected upwards from the breakout point, or by identifying key resistance levels ahead.
As always, it's essential to incorporate risk management strategies and consider additional technical indicators or fundamental factors before executing trades.
Trade closed: target reached
Target reached successfully hola .!!
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MrCharlie1
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