Trade #2 was on the USDJPY 15-minute chart. We had trend alignment on the 1, 5, 15 and 30-minute charts to the downside and the 60 min was consolidating. This was not the perfect setup but I still took it because of the following reasons:
- There was supply coming in which was confirmed, then a few bars after we had no demand which is weakness.
- As the price then mushroomed over (moved sideways), we saw a sign of weakness, an upthrust which caused the price to trade to the lower trigger point of the Supply bar.
- We also had trend alignment in four out of five timeframes
The trade entry was as follows:
Entry Price: 130.295
Stop Loss: 130.700 (Above the upthrust)
Profit Target: 129.750
Profit $: USD$419.48
The currency pair continued its downward trajectory. It had a slight hiccup at around 130.20 where this was a bit of support. There was follow-through once we had a widespread down bar on average volume which allow the currency pair to tank.
Take a look at our previous trade on AUDJPY
The software tool I use to identify my high-probability trade setups is TradeGuider’s Smart Center Pro