Yen Bouncing Off the Resistance
Dynamic trend: Turned up
Background: W1 – weak; D1 – strong
Support: 111.80; 111.00
Point 1: There was a breakout of the resistance level with a wide range and a high volume bar. The following up-bar confirmed demand. Moreover, on a smaller TF we can observe a successful test after this breakout, which confirms the strength.
Point 2: we can see a “Potential stopping volume” with an average range and a high volume. Because the subsequent bar was a down-bar, this maneuver is not confirmed, however, we should take into account that the strength comes on down-bars, and in the case of a successful test level around 111.80 and 111.00, we will be going long.
Strategy 1: Consider to go long if:
- Price pulls back to the support level 111.80 or 111.00 and;
- “No Supply” appears (down-bar with a narrow range and a low volume) and;
- The price reverses.
Strategy 2: Consider buying if:
- Price breaks out the resistance level 111.60 and;
- “No Supply” appears.
Strategy 3: Consider selling if:
- Price breaks down the support level 111.00;
- “No Demand” appears (up bar with a narrow range and a low volume).
You can search for «No Demand» and «No Supply» signals on the lower TF.