3.GBP/JPY Shows Bearish Move(Plan Dipper Entry)
1. The red zone represents a **supply zone**, where sellers are expected to dominate, leading to a potential price drop.
2. This zone is formed based on previous price action, where strong selling pressure was observed.
3. The current **bearish engulfing pattern** suggests a potential reversal from the supply zone.
4. A bearish engulfing occurs when a larger red candle completely engulfs the previous green candle, signaling selling dominance.
5. The rejection from the supply zone indicates that buyers failed to push higher, leading to a strong bearish move.
6. The trade setup suggests a **short position**, with stop-loss above the supply zone and take-profit at lower support levels.
7. Confirmation of this setup includes volume increase and previous resistance acting as a barrier.
8. If price respects the supply zone, further downside movement is likely.
9. However, a breakout above the supply zone could invalidate the bearish outlook.
10. It's crucial to manage risk properly by adjusting stop-loss levels based on price action.
2. This zone is formed based on previous price action, where strong selling pressure was observed.
3. The current **bearish engulfing pattern** suggests a potential reversal from the supply zone.
4. A bearish engulfing occurs when a larger red candle completely engulfs the previous green candle, signaling selling dominance.
5. The rejection from the supply zone indicates that buyers failed to push higher, leading to a strong bearish move.
6. The trade setup suggests a **short position**, with stop-loss above the supply zone and take-profit at lower support levels.
7. Confirmation of this setup includes volume increase and previous resistance acting as a barrier.
8. If price respects the supply zone, further downside movement is likely.
9. However, a breakout above the supply zone could invalidate the bearish outlook.
10. It's crucial to manage risk properly by adjusting stop-loss levels based on price action.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.