Analysis of USD/JPY D chart fail

On the daily (D) chart, I made a mistake when I marked the P Higher Low and assumed it was a new Low. However, it is not considered a low until the price makes a Higher High (HH) or a Lower Low (LL). THIS IS VERY IMPORTANT TO REMEMBER.

The P Higher Low was merely an inner structure liquidity (LQY) created as a trap to lead us to make mistakes and lose part or all of our capital.

Now that we see the structure is bearish and that the price has returned within the IC at the last High, we also see an opportunity for a sell, which was not visible in my previous analysis because I was looking for a BUY in that area—indicated by the blue line.

On this chart, we can see a perfect bearish structure that I missed by thinking it was a Higher Low instead of inner LQY.

When we return to the weekly (W) chart and look at the bigger picture, we see that the take profit (TP) on the D chart is very realistic, which means I would consider going for a sell at this moment until I see a real break of structure (BOS) on the D chart or 4H.

It is crucial to master structure and trend following!