H&S Pattern Complete On 4Hr EURJPY Chart. Await Trendline Break!
The head and shoulders pattern on 4 Hour chart is completed although not that clearly. But it certainly shows that the price is likely to head Northwards. The neckline has been broken rather unconvincingly and together with the neckline lies the 4 hour 50 EMA which can often strongly act as potential dynamic support and resistance. For our trading odds to increase, the price needs to break this EMA sharply to the upside.
Furthermore just above the EMA lies another trendline that has been respected more than 2 times, therefore taking this trade LONG at the moment might not be the smartest of ideas as it can easily reverse. Have a look at the main chart that displays all the above chart pattern and trendline. Its advisable for the trendline to break so we can finally enter a LONG trade. Our target would be the DAILY 50 EMA that lies at the region of 127.000 level.
Have a look at the above daily snapshot of the chart. it shows the price is confined in a triangle after the flash crash that took place a few days ago. it has clearly respected the triangle trendline and as it seems the price is showing further evidence that its headed up after rejecting the lower trendline of the triangle.
Shall there be any updates i will post them in a new thread. this is just the analysis behind this trade setup although it goes deeper than this i have just put some important technical picture only. cheers and happy trading
Furthermore just above the EMA lies another trendline that has been respected more than 2 times, therefore taking this trade LONG at the moment might not be the smartest of ideas as it can easily reverse. Have a look at the main chart that displays all the above chart pattern and trendline. Its advisable for the trendline to break so we can finally enter a LONG trade. Our target would be the DAILY 50 EMA that lies at the region of 127.000 level.
Have a look at the above daily snapshot of the chart. it shows the price is confined in a triangle after the flash crash that took place a few days ago. it has clearly respected the triangle trendline and as it seems the price is showing further evidence that its headed up after rejecting the lower trendline of the triangle.
Shall there be any updates i will post them in a new thread. this is just the analysis behind this trade setup although it goes deeper than this i have just put some important technical picture only. cheers and happy trading
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