High Probability Short on USDJPY
USDJPY is showing a very high probability Short Setup on the 1 Hour Chart.
Strategy: The chart shows a Horizontal Line which is drawn from the Higher Time Frame Chart (Daily Chart if the Trading Time Frame is 1 Hour Chart) from the Historical Data. The point where a Swing is initiated which breaks the most recent Swing Point and gets accepted following the break becomes an HTF Structure or HTF Structural Boundary or HTF Level with respect to Trading Time Frame.
Since, the Structural Boundaries are created of relatively (considering 1Hr Chart to be the Trading Time Frame) Higher Time Frame, these levels have the ability to reverse the current direction of the price if the the break of the level is either 'Unaccepted' or 'Rejected'. In case of 'Acceptance' after the break of the HTF Level, the price will tend to continue in the same direction as the break.
In the current chart, the price has broken the HTF Level R on the 1Hr Chart and was 'Unaccepted'. Hence a Short is a very good trade in the context. The Target can be trailed till the next level is reached.
Strategy: The chart shows a Horizontal Line which is drawn from the Higher Time Frame Chart (Daily Chart if the Trading Time Frame is 1 Hour Chart) from the Historical Data. The point where a Swing is initiated which breaks the most recent Swing Point and gets accepted following the break becomes an HTF Structure or HTF Structural Boundary or HTF Level with respect to Trading Time Frame.
Since, the Structural Boundaries are created of relatively (considering 1Hr Chart to be the Trading Time Frame) Higher Time Frame, these levels have the ability to reverse the current direction of the price if the the break of the level is either 'Unaccepted' or 'Rejected'. In case of 'Acceptance' after the break of the HTF Level, the price will tend to continue in the same direction as the break.
In the current chart, the price has broken the HTF Level R on the 1Hr Chart and was 'Unaccepted'. Hence a Short is a very good trade in the context. The Target can be trailed till the next level is reached.
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