USDJPY - Trend Change after Divergence - Selling @ lower High

2021年11月28日

*** Trade at your own risk! ***

Summary of the indications:

• Market was in Uptrend
  
• Market started a consolidation
  
• MACD showed bearish Divergence after Up-Movement
  
• Lower Low
  
• Sell @ next lower High towards next Support
  

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Hi Traders!

The setup of this idea is that as price made a lower Low in an Uptrend,
it is going to make a lower High. This could serve as an short entry point.

The market was in a long Uptrend.
After that, it started a Consolidation where it made equal Highs and Lows.
Now we have these possibilities:
Firstly: What follows after a Trend? A consolidation.
What follows after a Consolidation? EitherTrend Continuation of Trend Change.

Now the market either continues its trend or it reverse.
It is also possible that it reverses for a short amount of time, to continue its trend again.
But let's stay with the simple scenario.

What indication do we have that the market is going to change its direction.
Beside that the market is at a high price, the daily MACD showed a Divergence after the market made a sudden Up-movement.

If you want to know when a divergence occurs, ask in the comments!

After the bearish divergence, the market deeply fell down.
It also made a Lower Low with that.

If you want to sell, you need a better price.
So, we can just wait for a Lower High to sell.

The target would be the next Support Level.


If you have any questions or something to add, let us know in the comments!



Thanks and successful Trading :-)!