Another bullish setup on Daily 200EMA CADJPY

https://www.tradingview.com/x/Ym7br2Yy/

Price recently came out of a falling wedge on an intraday chart and this sort of occurrence is usually bullish as price wants to run on its own outside of a wedge.

Price here is at the 200ema on daily and it looks like it is ready to pop.

I already went long, if you trade it then good luck.

交易進行

Here is the setup. We wait for the momentum to swing back into this pair to the upside. We have 2 MACD indicators. No they are not bullshit. They work. You wait for a cross up of the RED Macd line to swing/cross up of the Signal line. The top one has already crossed up. Wait for the RSI to catch up with its momentum. You want the momentum on RSI to reach 70 at least but usually 65 is okay. SL about 109.38. I think I am on a 4HR chart. RSI at 14 or 7. MACD 3 (fast) 9 (slow) 5 (smoothing). The slower and standard Macd settings in same order would be 12, 26, 9
*Educational training purposes.
Cheers,
Chris

交易進行

Do your ENTRY into this trade on the 2HR chart. Thats right I was on the 4HR so your drop to 2HR. You will find that the momentum MACDs have crossed up. Remember if price is slow with buyers then wait for the RSI to breakout into 70 territory and there lies your breakout trade.

註釋

Finally, this trade will work on the 15m as well. Exactly 2 hours ago the RSI went into oversold. It has since pulled back. Wait for the 15m Momentum to build up t0 65-70 and that's your cue to go long. Don't forget a Stop loss, I mentioned a level before for sl but wth these momentum squeeze trades you can keep it much tighter for excellent risk and reward trades.

註釋

correction: 2hr ago the rsi went into overbought

取消訂單

I was just wondering about this trade and I see on the 4hr timeframe we may have a 'falling-knife' scenario. See chart below. I will close this manually but the setup is what's important for a future trade. Why confluence is so important and checking larger timeframes.