AUDJPY Short was the one last week

2023年8月21日

I think most traders find August quieter than the rest of the trading year due to lower volatility and ranging markets. For myself, trading opportunities are not as easy to come by but they are still there. Here's a backtested AUDJPY breakdown from last Thursday.

Following a bearish 1h break of structure during Thursday's Asia session, price rejected at a 1h demand zone and pulled back into the macro supply zone by New York session on the same day. The clue that sellers were still in control was the corrective nature of the retracement in comparison with the impulsive nature of the structural break.

https://s3.tradingview.com/snapshots/l/LPYBALYJ.png

On the lower time frames (click the screenshot link above), price tested the 1h supply zone once with an unconvincing rejection. With the second test, there was a liquidation of the previous high followed by a 5 minute bearish break of structure; a strong sign of selling presence. Price pulled back for a mitigation (ENTRY 1) followed by a further ltf BoS and another mitigation showing that sellers were gradually gaining control again for a downside break. First target, 1h swing low.

Gearing up for increased volatility come September. Have a great week.
Black Out.

2023年8月21日

註釋

Price broke the low, wiped the 1h demand zone and has pulled back to the 1h supply zone. This is within premium pricing of the most recent bearish move and could therefore be a logical place for a lower high to form and continue bearish market structure.

Let's see how price develops within the supply zone...