As you can see price has been moving in a down trending channel.
A break of such channel should have strength as traders have been waiting for a some time for this break to happen.
However a day after the break we get a reversal candlestick pattern to the down side. Which shows that the break of this Trend line didn’t happen with strength.
What’s important here is that price broke through a channel that was established back in May 2016. When it broke above the channel, I expected buyers to come in with strength. Buyers did manager to move price to the upside, but didn’t have the strength to hold price at it’s highs. In fact the BEARS pushed price all the way back to lower than todays open.
I’m waiting for price to break the low of the High Test candle to enter a short position.
On this Forex pair price has been consolidating between a pennant like pattern since early 2016.
What i’m looking at is the upper downtrend line that price is at rite now. Originally late last week and early this week I was looking for a BEARISH signal to go short.
However price has been able to hold its ground at the top while putting pressure on to the trend line. ( I explain this with visual in my video) testing the this trend line. Which tells me that bulls are the stronger ones. As you can see price has been consolidating just below the trend line and has been forming a flag pattern.
I don’t usually trade flag pattern however the tight consolidation got my attention.
This would be quick trade to the upside up to the 0.99800 to 1 dollar mark .
I’m currently short USDJPY.