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Confluencepattern

USDJPY Short Opportunity: Key Factors and Strategic EntryHello, traders! I’m on standby to short the USDJPY, and here's why this setup is compelling. This analysis covers two crucial parts, providing context and strategic entry points. Part One: Macro Fundamentals 1. China’s Treasury Offload : - China sold $53.3 billion of Treasuries and agency bonds in Q1 2024. This reduction in US dollar assets can impact USDJPY negatively. 2. BRICS Currency Moves : - BRICS countries are trading $4 billion in local currencies, sidelining the US dollar. This shift decreases demand for USD, potentially weakening USDJPY. Part Two: BOJ Interventions 1. Recent BOJ Action : - The Bank of Japan intervened in the FX market on April 29, 2024, but the attempt seemed to fail. Our community was alerted on April 26, 2024, giving us an early advantage. 2. Potential Future Intervention : - BOJ might intervene again, but this could upset G7 partners. If intervention fails or doesn’t happen, USDJPY could fall sharply. Trading Strategy: Bearish Patterns Confluence Key Levels and Patterns: - Entry Point : Short USDJPY at 159.27. - Confluence : This level aligns with a Bearish Bat Pattern and an ABCD Pattern, strengthening the case for a short position. Final Thoughts Considering the macro fundamentals and recent BOJ actions, the stage is set for a potential sharp fall in USDJPY. The bearish patterns at 159.27 provide a technical basis for entry, adding to the conviction. Stay vigilant and manage risk carefully. Happy trading!
Short
by RaynLim
Counter-Trend for Greater ProfitsThis week, I'm looking at NZDJPY with a bearish perspective, and here's my trade plan: 1. Bearish Shark Pattern Confirmation at 91.74: I'll be patiently waiting for the Bearish Shark Pattern to confirm at the level of 91.74. This level coincides with the formation of a Head & Shoulders pattern, adding confluence to the bearish setup. 2. Extended Trading Targets: If the Bearish Shark Pattern sets up as anticipated, I'll extend my trading targets beyond the traditional Target1 and Target2. By doing so, I aim to capitalize on the potential bearish momentum and maximize profits from the trade. 3. Stop Loss Management: Once the market reaches the traditional Target1 of the Shark Pattern, I'll shift my stops to the entry level to protect profits and minimize risk. By patiently waiting for the bearish setup to confirm and managing stops effectively, I aim to capitalize on the shorting opportunity presented by NZDJPY this week. What are your thoughts on NZDJPY? Feel free to share your trade plans and insights below! Wishing everyone successful trading ahead!
Short
by RaynLim
Science of Trading ApproachToday, I'm excited to share a detailed approach for trading GBPUSD. If you're considering a short position, here's a comprehensive strategy: 1. 1-Hourly Chart: Shark Patterns at 1.2676 - Wait for Shark Patterns to complete at 1.2676 on the 1-hourly chart. - Look for a trading combo within the chart when the market retests the Trendline Break (red line). - Ensure the market doesn't violate the trendline during this process. 2. 4-Hourly Chart: Bearish Gartley Pattern at 1.2725 - The ideal scenario is for the Bearish Gartley Pattern to complete at 1.2725 on the 4-hourly chart. - Aim for completion before Monday, March 4, 2024, by 5 pm. Patterns completing after this time are considered disqualified. This Science of Trading approach allows for a meticulous analysis and synchronization of different patterns across multiple timeframes. It provides a well-defined strategy for traders looking to short GBPUSD. Feel free to share your thoughts and insights. Are you considering a similar approach or have different plans for GBPUSD? For a visual representation, please refer to the chart link in the TradingView post.
Short
by RaynLim