Hello traders! I hope you’ve had a productive trading week.
Let’s take a look at USDJPY, where we’re wrapping up the week with a textbook XABCD Double Top formation.
📍 Structure Overview
Price action completed an extended XABCD formation, with D printing a perfect double top around the 147.17 level.
The move from C to D aligns closely with the prior XA leg, showing strong symmetry in price.
D terminates precisely within the PCZ (Potential Completion Zone), aligning with both 78.6% and 100% extensions.
🎯 Bearish Targets Below
If this Double Top confirms with bearish follow-through, the structure offers a clean setup with downside targets:
Target 1: 145.35 (100%)
Target 2: 144.96 (127.2%)
A break below point C (146.13) would further validate the bearish thesis.
🧠 Pattern Highlights
XABCD geometry
Strong price symmetry
Completion into previous high (resistance)
Clear target zone for risk-defined trades
Note
USDJPY – XABC Double Top Invalidation | Volume Surge on U.S. Open
Hello traders, happy Saturday!
Hope you're enjoying your weekend and reviewing your trades. Let’s take a look at an interesting failed setup that teaches a great lesson in confirmation and risk control — the USDJPY XABC Double Top that failed cleanly on Friday.
📍 Pattern Overview
This was a well-formed XABC Double Top:
D completed right at the 100% XA projection
Aligned with the 78.6% BC retracement
Nice harmonic symmetry, all within the Potential Reversal Zone (PCZ)
The setup screamed short opportunity with a clear target zone mapped — but price action had a different plan.
📌 The Invalidation
At the U.S. open, we saw:
A sharp increase in volume
A decisive breakout above D, invalidating the double top
No bearish confirmation — no hesitation — just strength
Even if a limit sell order had been placed at the 78.6% retracement (inside the PCZ), the stop loss was minimal, well-contained relative to the downside target.
This is exactly why confirmation matters. Pattern alone ≠ trade.
🧠 Takeaways for the Weekend
XABC double tops must hold at D — or they’re invalid
Volume and session timing (like the U.S. open) provide important context
Predefined invalidation = controlled risk
Losing small is part of trading professionally
Review, refine, and reload for next week. Stay consistent.
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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.