Alternative Technical Templates.

[tonymand]

Hi Josh, couldnt read your chart but hopefully I have got the right one. As I say I dont trade this pair so I am looking at this "cold" as it were. I will also look at multiple timeframes when looking for a trade. My take is that looking at the 1H we have bounced off the yearly low. There was divergence here which could have led to a lower time frame long entry although the 15 mins is a bit of a mess. There was no obvious support line (more a range), no divergence and no easy to define downtrendline to play off. The obvious place to look for an entry is short at the retracement areas I have marked with the 60SMA (if it is a good marker in this pair) or the last supply area. If you felt a desperate need to trade it earlier then resist! If I was forced to take a position I would look for a retracement to the trendline or to the 60SMA on the 15 min and look for an action trigger at that point. The trouble with that of course is there is a supply area almost immediately overhead. As I say I would not see an obvious position here but would be interested in the thoughts of others

[JimmyMac]

Originally Posted by tonymand

If I was forced to take a position I would look for a retracement to the trendline or to the 60SMA on the 15 min and look for an action trigger at that point.

The trouble with that of course is there is a supply area almost immediately overhead. As I say I would not see an obvious position here but would be interested in the thoughts of others

This pair is always subject to intense Central Bank & high level "chatter". Especially when it begins threatening sensitive technical levels, as we are currently observing.

It might be best to guage Yen weakness/strength & trade it (Yen) via alternative pairs, such as GBPJPY, EURJPY etc. Just a suggestion.

The 109 level, as has been mentioned, is key on any upside. It focuses both horizontal as well as trendline s&r potential & the tunnel between 109 & 110.50 contains plenty of slip should the Dollar mount a counter offensive.

If you're intent on trading it, simply use your normal technical behaviour tools. Sell rallies whilst still in depressed mode, and/or buy dips on any determined effort to climb back above this overhead resistance hurdle.

It's clearly displaying lower top weakness off 113.50, therefore, the lower timeframes are reasonably easy to navigate thus far.

Just be careful & keep your ears pricked for aggressive chatter from BoJ officials if prices begin heading for the ultimate technical radar level of 105.

[blackdog]

Hi tonymand
When you look for your major S/R do you use the line charts on say
the H4 and H1 and then switch to candles on the 5/15 min for the entry/exit.

blackdog

[tonymand]

Originally Posted by blackdog

Hi tonymand
When you look for your major S/R do you use the line charts on say
the H4 and H1 and then switch to candles on the 5/15 min for the entry/exit.

blackdog

Yes, exactly that blackdog. Since the line chart gives only closing prices it is cleaner and clearer. The candle chart then on the lower frames allow me to look at what the range of the support/resistance areas are. Its important to remember that the actual levels reached say on a 4 hr candle chart can be up to 100 pips or so different from a closing line chart

[daydreamer65]

When you look for (plot) your major S/R

When plotting S/R lines (areas) the peaks & troughs can be
seen more clearly using a line graph. Also keep an open mind
when looking through others posts to note which S/R lines
they are taking note of.

Compare them to your own, maybe adjust yours.

The major S/R lines have been trialed for some time. They get
refered to quite regularly, when you have them plotted keep them
on your charts, in fact make them thick red lines until it is
engrained in your memory that these lines need to be given
some respect.

Also take a look at this post from Tess, pay particular attention
to the thumbnails.

Alternative Technical Templates.

[jlmac27]

Would this be a valid entry? Support at the 108.40 and showing devergence.If I am wrong at any of this please let me know.I think I fixed my image size for you to see them better(I hope).

[tonymand]

Originally Posted by jlmac27

Would this be a valid entry? Support at the 108.40 and showing devergence.If I am wrong at any of this please let me know.I think I fixed my image size for you to see them better(I hope).

Yes there is a possible entry developing. On the 1H you now have a solid support at 108.40 and the downtrendline just overhead. On 15 mins you have divergence and a spring probing beneath the bottom of the support. You could enter now on the break of the outside bar at 108.49 (aggressive entry) or wait for a break of the trendline or a retest of the trendline from the top. Volumes are low this morning though after thanksgiving

[jlmac27]

hey tony,
I know this sounds like a stupid question,but do you draw your trend lines and S&R lines from the close,or the high and lows?

[tonymand]

Originally Posted by jlmac27

hey tony,
I know this sounds like a stupid question,but do you draw your trend lines and S&R lines from the close,or the high and lows?

I just look for the best fit Josh. Some say closes are the most important but really none of these things are exact (although professional technical analysts do use exact definitions).After all you are using these things to make a best guess and so it is really whats useful to you. UY is looking more interesting now as its probed down to the stronger support at 108.20. If this holds for a while and we get say divergence or a break of the TL then it might be worth a shot given that volumes will now be picking up this morning

[tonymand]

Turned out to be a nice sell opportunity either on the break or the failed retest which would have been safer- did you take it Josh?