Evening Traders,
Today’s Analysis – EURJPY – breaking daily resistance with no follow through, a retest of local support is likely for a probable bounce.
Points to consider,
- Impulse sell off
- Local support ( trade location)
- Daily Resistance (immediate target)
- Oscillators (not currently overextended)
- Volume Climax ( follow through)
EURJPY impulse sell off is approaching market structure – local support – if price action holds this level, a bounce will be probable.
Local support is the immediate trade location on the chart. A daily resistance retest is probable with a relief rally from support, common after impulse sells.
The oscillators are not in overextended conditions, indicating further sell momentum likely. The more overextended the oscillators get, the more likely an oversold bounce.
There is an evident volume climax node, a temporary bottom was not set in as bear volume continued to push price.
Overall, in my opinion, local support is likely to show its significance, a bounce into daily resistance will allow for a relief rally. How price action reacts to daily resistance will dictate the overall trend.
What are your thoughts?
Thank you for following my work !
And remember,
“The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behavior.” – Brett Steenbarger
Today’s Analysis – EURJPY – breaking daily resistance with no follow through, a retest of local support is likely for a probable bounce.
Points to consider,
- Impulse sell off
- Local support ( trade location)
- Daily Resistance (immediate target)
- Oscillators (not currently overextended)
- Volume Climax ( follow through)
EURJPY impulse sell off is approaching market structure – local support – if price action holds this level, a bounce will be probable.
Local support is the immediate trade location on the chart. A daily resistance retest is probable with a relief rally from support, common after impulse sells.
The oscillators are not in overextended conditions, indicating further sell momentum likely. The more overextended the oscillators get, the more likely an oversold bounce.
There is an evident volume climax node, a temporary bottom was not set in as bear volume continued to push price.
Overall, in my opinion, local support is likely to show its significance, a bounce into daily resistance will allow for a relief rally. How price action reacts to daily resistance will dictate the overall trend.
What are your thoughts?
Thank you for following my work !
And remember,
“The core problem, however, is the need to fit markets into a style of trading rather than finding ways to trade that fit with market behavior.” – Brett Steenbarger
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Related publications
Disclaimer
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Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
partner.blofin.com/d/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
partner.blofin.com/d/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Related publications
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.