Market Analysis provided by A Teen Trader should be used for a education purposed only, trade what you are willing to lose
EUR/JPY has been on an absolute bullish rip this week. For the past 3-4 months we have been in a massive consolidation box on higher time frame, about a 300 pip zone. Last week before market close we had reached, tapped into, and rejected a major zone. At market open this week price opened above that zone, which to me indicated that we continue up to at least 133. Which we absolutely smashed. If you look, we had moved from zone to zone all week in a bullish force, breaking each resistance along the way. Today, breaking that top resistance zone, actually just ripped through the consolidation box that price has been in for an exponential amount of time. What to expect next, is either we pull back and reject the broken resistance and continue the current bullish movement up to the next resistance zones of 135.50 and 136. Or we could see that this resistance break was a fake move to collect buyorders, and now we will see a pull back and continuation of the consolidation period.
One of the questions i get the most is, people not knowing when to enter. Well here on EUR/JPY i have attempted to make it much clearer for you guys. I actually took this trade, on a demo account for a new broker i am testing (I posted the trade in my telegram, check my telegram out here). Where i entered is after the candle close of the bullish engulfing candle arrowed in blue furthest to the left. This entry was PERFECT, why? because we had retested the major support zone, created a nice rejection candle and then had a bullish engulfing. Other entry points that would have served to put you in a very good position to win are the other 3 blue arrows. The second arrow was also a very good trade because we where having a pull back creating a daily wick, we showed exhaustion, and price formed a bullish engulfing, taking 20-30 pips on this move would have been safe. The third arrow is also perfect, we had a third touch on the bullish trend line and then had an extremely bullish engulfing candle. We would be looking for a move to 133 or to the major resistance on this trade. The last arrow is a good entry point because we broke out of a consolidation box (black box), broke a resistance, and stalled over the resistance (now support) which means that we are collecting orders to continue the move.
I hope you all learned some more from this post! Appreciate all the love and feed back. Happy Trading!