It’s been a while since I last posted a trade plan as over the winter’s I run my own ski company here in the French Alps. As spring has now sprung my attentions are turning back to trading and so I should be posting my trade plans more regularly from now on.
On my radar is a counter-trend long trade on AUDJPY based on a number of factors.
Firstly, the daily stochastic has turned up and crossed out of oversold territory with a huge bullish engulfing candle, rejecting a daily level of support dating back to Jan 2016. We also have bullish RSI divergence.
On the H4 chart we can see that price doubled bottomed and pushed away strongly from the Weekly M2. Stochastic and RSI divergence is visible on this time frame. Current risks on this time frame are the 55-period moving average overhead which the market rejected strongly on the 21st March.
The H1 chart clearly shows the double bottom and push up from the Weekly M2, and a further push to make a higher high. RSI is trending up and stochastic is hovering around oversold.
My entry will be on the M15 chart around the 81.400 role reversal level, after seeing some bullish evidence. My target will be in the confluence zone of the 50-61.8% retracement of the large move down that also sees the Weekly M4 and Monthly M2 pivot points contained within.