Eurjpy Formed a Ascending Channel on the Daily TF, at a Strong Supply Zone (Red Box) a Ascending Channel is a reversal chart pattern.
If the current Daily candle engulfs the previous daily candle by closing with a bearish candle, than we can expect a strong impulse phase downward.
(A Bearish Engulfing candle stick pattern is a strong reversal candle stick pattern)
You can look for Entries around 126.800,with your stop-loss around 127.200-127.150
What are we looking for before we enter?
1.Current Daily should engulf previous daily candle, Bearish Engulfing.
2.Entry 2-A Break out of the Ascending Channel .
3.A retest at the neckline of the M-formation on the H4 chart
Our target zone will be the neckline of the Head and shoulder pattern @ 125.00
If the current Daily candle engulfs the previous daily candle by closing with a bearish candle, than we can expect a strong impulse phase downward.
(A Bearish Engulfing candle stick pattern is a strong reversal candle stick pattern)
You can look for Entries around 126.800,with your stop-loss around 127.200-127.150
What are we looking for before we enter?
1.Current Daily should engulf previous daily candle, Bearish Engulfing.
2.Entry 2-A Break out of the Ascending Channel .
3.A retest at the neckline of the M-formation on the H4 chart
Our target zone will be the neckline of the Head and shoulder pattern @ 125.00