Trend is down - Price has just pulled back but failed to exceed high of 9-2. Bearish Engulfing pattern engulfs two days of price action, and has tagged upper Bollinger Band. Stochastic has turned down and signal line has crossed as well. Finally my new "confirmation filter" the Connors 2 period RSI has exceeded the 90% threshold, which indicates extreme overbought. Finally, red long term Zig Zag didn't paint a new low.
Stop Loss is the high of the completed reversal pattern which has confluence with the 9-2 high.
Take profit is previous swing low as indicated by short term zig zag ( blue), alternatively you can trail the stop 1 ATR and close when either the blue or red Zig Zag paints a new low.
Compare this set-up to my EURJPY idea where I am already short and have made 1 ATR already. It is almost the identical set up. (The EURGPY has a positive correlation with USDJPY). The other yen pairs are getting close too.
Stop Loss is the high of the completed reversal pattern which has confluence with the 9-2 high.
Take profit is previous swing low as indicated by short term zig zag ( blue), alternatively you can trail the stop 1 ATR and close when either the blue or red Zig Zag paints a new low.
Compare this set-up to my EURJPY idea where I am already short and have made 1 ATR already. It is almost the identical set up. (The EURGPY has a positive correlation with USDJPY). The other yen pairs are getting close too.
