06/08/2024
📊📊GBPJPY
📉 Trade at H1 chart and analyze at H4, Daily chart
💥💥Looking at the H4 chart, we can clearly see the current trend is a downtrend. The market has been declining continuously from July 11th to August 5th and stopped at the price level of 180.092. Why did the price react at this level when we don't see any support zone on the H4 chart? A useful tip to find strong support and resistance zones is to look at the daily chart to see the important support and resistance levels.
💥💥It is easily noticeable that the price has reacted at the strong support zone (176.307 - 181.357) on the daily timeframe. At this zone, the price has bounced up twice, and this third time, it bounced up again. This indicates that this is a strong support zone that we need to pay attention to, or in other words, this zone is the boundary between buying and selling.
💥💥Analyze H4 chart: When the market has created a support zone at the level of 180.092 - 181.723 and starts to rebound, the issue is where the price will rebound to continue the previous downtrend. There are predictions as follows: The price will stop at the fibo 38.2 level (187133) or the price will continue to rebound to the fibo 50 level or fibo 61.8 level. This is uncertain, so we need to wait for the market to show a clear price action. Advice for those who are inexperienced is to trade according to the trend to have a higher chance of winning.
💥💥And the H1 chart is where we will enter trades after analyzing the H4 and daily chart. As shown in the image, I have drawn arrows indicating the two most likely scenarios, giving us the highest chance of winning. As I mentioned at the beginning, this is a downtrend. Those without experience should only look for signals to enter sell orders. However, those who are quick to react and understand the currency pair they often trade can enter both buy and sell orders. Please pay attention to the yellow and blue lines, as these represent the support and resistance zones where the price will move. Now, our job is to wait for the market to show price action to buy or sell according to the arrows.
