USDJPY Reversal Trade.
Points to Notice
Day 1 - Sets the new week high and low. Establishes a new week closing price as a target for a day 3 setup.
Day 2 - Typically expands Mondays range in the direction of the underlying oder flow. This occurs as a pump/ dump leading to the Asia and London coil sideways.
Day 3- We take note of the previous day high and low to observe price going into the NY session. In this case Price gave signs of a coiling reversal into the evening setting up for the move below Day 2 closing price.
Ideally what you want to see in this template is traders faked into a breakout move in the direction of the pump. This can present as a candle close above yesterdays high or closing price.
After trapping traders in we see the change in order flow creating a new lower low. This is the confirmation to look for an entry at the previous days closing price.
We set a stop at the high of day 3 level or at the previous days high with a target at the previous days low. In extreme cases we may see a setup that expands to the LOW level.
THE ONLY IMPORTANT DATA POINTS.
- PREVIOUS DAY HIGH AND LOW
- CLOSING PRICE
- LOW HOW LEVELS
- DAY COUNT
MARKETS ONLY DO TWO THINGS
- BREAKOUT, FAIL, REVERSE
- BREAKOUT, RETEST, TREND.
ONLY LEVELS THAT ARE TRADED
- PREVIOUS DAY HIGH (STOP LOSS)
- PREVIOUS DAY CLOSING PRICE (ENTRY)
- PREVIOUS DAY LOW (TARGET)
USDJPY 
EURUSD USDJPY
Points to Notice
Day 1 - Sets the new week high and low. Establishes a new week closing price as a target for a day 3 setup.
Day 2 - Typically expands Mondays range in the direction of the underlying oder flow. This occurs as a pump/ dump leading to the Asia and London coil sideways.
Day 3- We take note of the previous day high and low to observe price going into the NY session. In this case Price gave signs of a coiling reversal into the evening setting up for the move below Day 2 closing price.
Ideally what you want to see in this template is traders faked into a breakout move in the direction of the pump. This can present as a candle close above yesterdays high or closing price.
After trapping traders in we see the change in order flow creating a new lower low. This is the confirmation to look for an entry at the previous days closing price.
We set a stop at the high of day 3 level or at the previous days high with a target at the previous days low. In extreme cases we may see a setup that expands to the LOW level.
THE ONLY IMPORTANT DATA POINTS.
- PREVIOUS DAY HIGH AND LOW
- CLOSING PRICE
- LOW HOW LEVELS
- DAY COUNT
MARKETS ONLY DO TWO THINGS
- BREAKOUT, FAIL, REVERSE
- BREAKOUT, RETEST, TREND.
ONLY LEVELS THAT ARE TRADED
- PREVIOUS DAY HIGH (STOP LOSS)
- PREVIOUS DAY CLOSING PRICE (ENTRY)
- PREVIOUS DAY LOW (TARGET)
USDJPY EURUSD USDJPY 
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.
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.