Possible long on CADJPY next week
Updated
When a currency breaks outside the channel and then changes color, it signals a reversal in strength/trend. By waiting for this to happen to two currencies during the same candle, an entry signal is created (CAD=red, JPY=white)
The current trend has not ended, however. Based on previous data, it looks like it will take 3-4 more candles for the CAD and JPY lines to change color outside the channel, signaling the CADJPY pair to reverse into a bullish direction.
I am projecting 3 days of forward ATR against the previous candle's bodys low (I prefer measuring this rather than the high/low wicks), to get a price range of 111.738 to 116.446 over the next week. Based on today's current price, it puts the lower end to 113.189, which is also about 1x ATR from yesterday's open, so it "lines up" in that sense.
We'll probably have confirmation to go long around Wednesday of next week!
Good luck on your trades
Note: Here is the indicator in action for the last 4 months. Over the last 4 months, it would have been accurate 5 out of 6 times (83%), with small wins each time (and possibly one big win), depending on your trade entry and how you manage your trades:
The current trend has not ended, however. Based on previous data, it looks like it will take 3-4 more candles for the CAD and JPY lines to change color outside the channel, signaling the CADJPY pair to reverse into a bullish direction.
I am projecting 3 days of forward ATR against the previous candle's bodys low (I prefer measuring this rather than the high/low wicks), to get a price range of 111.738 to 116.446 over the next week. Based on today's current price, it puts the lower end to 113.189, which is also about 1x ATR from yesterday's open, so it "lines up" in that sense.
We'll probably have confirmation to go long around Wednesday of next week!
Good luck on your trades
Note: Here is the indicator in action for the last 4 months. Over the last 4 months, it would have been accurate 5 out of 6 times (83%), with small wins each time (and possibly one big win), depending on your trade entry and how you manage your trades:
Note
Looks like the indicator should flip at the end of either today's (Jul 24) or tomorrow's (Jul 25) candle. At that point I'll suggest a new entry point since we'll have a proper signal to go on.
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