Momentum Dive Pattern On GBPJPY Shows Strong Selling Pressure
At a glance, you can see that this is a breakeven trade and the process we followed to identify this reversal trade is totally identical to the other trades.
Even though the process was the same, we cannot expect every trade to work in our favour. In trading, it is all about adapt our self to the randomness of the market.
Now have a look at the above chart, first of all, you can see that the GBPJPY was in a strong uptrend. But suddenly a strong bearish momentum followed by a small sideway market indicates a sudden selling pressure that occurred in the market. In trade revenue pro we call this a momentum dive pattern.
At the same time the RSI also showing a massive overbought and divergence. This indicate the lack bullish momentum and after identifying all these confluences, the price broke below the local structure level confirming the trend reversal. This was our entry criteria and as you guys can see we just went short upon the breakout and eventually price came back hit the stop loss for breakeven trade.
Even though the process was the same, we cannot expect every trade to work in our favour. In trading, it is all about adapt our self to the randomness of the market.
Now have a look at the above chart, first of all, you can see that the GBPJPY was in a strong uptrend. But suddenly a strong bearish momentum followed by a small sideway market indicates a sudden selling pressure that occurred in the market. In trade revenue pro we call this a momentum dive pattern.
At the same time the RSI also showing a massive overbought and divergence. This indicate the lack bullish momentum and after identifying all these confluences, the price broke below the local structure level confirming the trend reversal. This was our entry criteria and as you guys can see we just went short upon the breakout and eventually price came back hit the stop loss for breakeven trade.
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.