USDJPY is a pair that trends very well on the lower time frames. While in consolidation this pair has managed to give a quick trade that had good compound entries. Using my methods based on the SLFX Trading Basics Course are universal on all time frames. Let's take a look.
Price has hit a major trend line for the 4th time keeping price in consolidation.
As you can see in the picture above price has been in consolidation for some time now. We can consider a breakout soon but I'll save that for another post.
There are a few ways traders could have traded the most recent sell. Let's get into it here. On the 4 hour timeframe price created a double top and broken a counter trend line. Take a look at the picture analysis below.
While a forming a double top, we can also see a bearish engulfing candle signaling the 1st sell opportunity back down into the support trend line. Price broke the neckline of the double top and sold off again. Let's take a closer look at this on the 1 hour time frame. Take a look at the picture below.
We can see how price on the 1 hour time frame came back into the neckline of the double top and sold off. The entry candles presented was a rejection candle in the zone and at the trend line. Placing a fibonacci on the trade allowed for quicker profits to be made. A third trade was placed using SLFX Box Barrier Method. Sellers flooded the market pushing price right back down into the trend line.
You can learn more about the boxed method and how to simply apply fibonacci by becoming a member of SLFX today: https://www.deslfx.com/packagesdeslfx
As you can see, these were quick trades that involved minimum draw down and stress. Trades like these happen more in the market then not when actively searching for them. Especially at market structure. As you can see, no indicators were involved in trades. SLFX prides itself on trading strictly based on market structure and price action.
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