EURJPY False Breakout Resulted in Loss
Look at the strong uptrend on EURJPY. It is strong and constantly makes a series of higher highs followed by higher lows. Finding a profitable trend reversal in these kinds of strong market conditions is hard and at the same time, it is much riskier as well.
Therefore we should be careful in these kinds of market conditions.
Now according to the above chart, you can see that the EURJPY was in a strong uptrend and the occurrence of the double top pattern clear shakes the bullish momentum and this is where we got interested in this trade.
After the double price was never able to make new higher highs and RSI also shows a massive divergence indicating buyers are losing their momentum. Right after that price ended breaking below the local structure level confirming the market reversal.
This is where we placed a short trade and as you guys can see, right after the trade entry, the price ended up moving against us and hit our stop loss for negative -0.5R, in percentage it negative -0.25%.
Therefore we should be careful in these kinds of market conditions.
Now according to the above chart, you can see that the EURJPY was in a strong uptrend and the occurrence of the double top pattern clear shakes the bullish momentum and this is where we got interested in this trade.
After the double price was never able to make new higher highs and RSI also shows a massive divergence indicating buyers are losing their momentum. Right after that price ended breaking below the local structure level confirming the market reversal.
This is where we placed a short trade and as you guys can see, right after the trade entry, the price ended up moving against us and hit our stop loss for negative -0.5R, in percentage it negative -0.25%.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.