Hi guys, I entered a short order on USDJPY and saw this…
However, despite a apparition of two pinbars at an level where levels did fall back, how come did the pair rise anyway?
Any way to explain this?
Thanks!
Wllen1
I don’t trade USD/JPY, however saying that give the trade some time to breath! Looking at that chart I would be more interested at a potential sell at 99.00/99.20
Also, just to add, if those pin bars are of any importance you’re likely to see a stop run overnight before any sign of a retrace.
Hum… could you add a little more details please?
This pair was on a S/R level, it has 2 large pinbars on 4 hours chart and pinbars are signs of reversal.
What is wrong in my logic?
Thanks!
Wlen1
There could be absolutely nothing wrong with your logic, so don’t think that for one moment.
We all have different ways when it comes to interpreting charts, and personally I look at S&R levels as stop run opportunities, especially obvious S&R levels. (the word ‘obvious’ being down to personal opinion of course)
Like I said before I don’t trade UJ, I trade GU on 1H charts only. But if I was to apply my own theory to that trade then I would have looked at buying at that level for a short term run upwards which would have placed pressure on the sell stops who went short at that level. It’s all swings and roundabouts, never a right and wrong approach - that is until you look after the event in retrospective hindsight.
Here is a pretty picture, might play some importance 
If price breaks higher it may well use this trend line as support in the near future, i am of course not suggesting anything!
Very interesting!
However, I still don’t completely get why you saw that 99 is a level the price could fall. Could you explain it to me in a more noob-friendly way? What is the logic behind it? By the way, I am a noob XDXDXD.
Thanks!
Wllen1