AUDJPY H4, ideas for possible sell entry.
On the H4 time frame we can get a clearer picture of what price is doing. Previously price made a 3rd hit to a Daily trend line and if price continues to respect this zone, it can make its way back to the trend line for a 4th time. If this does happen along with price showing resistance at the trend line without breaking through it, we can look to enter a buy at the trend line.
However, if price breaks through the trend line and closes below it we can either enter and place our stop loss above the previous swing high or wait for a retest before entering a sell.
I have included 2 ideas about what price could do if it does not break through the Daily resistance zone:
1. Price can make its way back to the trend line and breakout into a sell.
2. Price can make its way back to the trend line, respect this level, buy back to the resistance zone before starting to sell again. If this idea takes place and price returns to the trend line for a 5th time, we can look out for a breakout into a sell once price does not respect the trend line again.
Feel free to comment and ask me any questions you may have :)
However, if price breaks through the trend line and closes below it we can either enter and place our stop loss above the previous swing high or wait for a retest before entering a sell.
I have included 2 ideas about what price could do if it does not break through the Daily resistance zone:
1. Price can make its way back to the trend line and breakout into a sell.
2. Price can make its way back to the trend line, respect this level, buy back to the resistance zone before starting to sell again. If this idea takes place and price returns to the trend line for a 5th time, we can look out for a breakout into a sell once price does not respect the trend line again.
Feel free to comment and ask me any questions you may have :)
