BUY EURJPY: SYMMETRY TRIANGLE ON 4-HOUR TIME FRAME (Closed)

A lot of activities did happen on the pair as price turned periodically after a few pips of upward and down ward move. It took me some time, patience and experience (for which I am proud) to make something out of this.

On 4-Hour time frame, this set up appeared to be a symmetry triangle. But for precise entry on 1-HOur, one needs to look out for Sub-pattern (pattern inside a pattern). Fibonacci retracement tool was drawn from leg "1" to leg "2" and the Expansion tool was drawn from leg "2" to "3" and then to "4". The two Fibonacci tools form a cluster ( the green lines) which is a buy zone.

To further enhance my bias, trend line was drawn using the close of the recent lows and its extension seemed to be in confluence with the Fibonacci cluster.

The thick and thin trend lines (lower ones) were drawn using the close of the lows from 4-hour and 1-Hour time frames respectively for support levels if price should find its way out of the cluster.

When price tested the cluster and bounced off the trend line, and created a platform for bullish divergence (note the line on Stochastic) to form, I went long: Stop Loss was set at 134.88 (50 pips) and Target at 136.38 which is the other side of the symmetry triangle.

EVENTUALLY

Price rallied 20 pips upward -- tested cluster formed from drawing a Fibonacci retracement tool from "2" to "5" (where the rally began) and another from "4" to "5"-- and formed reversal bars and a bearish divergence. Since this aligned with my Exit Rule, I had to part with 20 pips.

Profit/Loss: + 20 pips

About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.