(Education) EURJPY - How to trade this RSI Bamm on EURJPY?
Hey guys, this is an update to the EURJPY setup I posted last week.
We are right there at the bottom of the triangle.
What is interesting to me is the formation of an RSI bamm at Friday's closing price.
Pattern Identification
RSI Bamm at bottom of triangle.
RSI Bamm is the formation of a W/M structure at RSI oversold/overbought where this is considered a prelude to a potential end of trend.
A W/M structure, followed by a retracement to the 50% level of the RSI indicator and a final retest at oversold/overbought will be considered a potential buy/sell opportunity.
Trade Execution
Next week, I will watch out for a move up out of the RSI oversold zone for EURJPY to initiate a buy.
SL will be below the low of Friday.
I am aiming at 119.50 for TP where the higher boundary of the triangle is at.
If EURJPY continues lower on Monday, this trade trade will be invalid and we will look for other opportunities to trade this pair.
We are right there at the bottom of the triangle.
What is interesting to me is the formation of an RSI bamm at Friday's closing price.
Pattern Identification
RSI Bamm at bottom of triangle.
RSI Bamm is the formation of a W/M structure at RSI oversold/overbought where this is considered a prelude to a potential end of trend.
A W/M structure, followed by a retracement to the 50% level of the RSI indicator and a final retest at oversold/overbought will be considered a potential buy/sell opportunity.
Trade Execution
Next week, I will watch out for a move up out of the RSI oversold zone for EURJPY to initiate a buy.
SL will be below the low of Friday.
I am aiming at 119.50 for TP where the higher boundary of the triangle is at.
If EURJPY continues lower on Monday, this trade trade will be invalid and we will look for other opportunities to trade this pair.
Not ready yet, I will wait for another retest of lows.
Read comments on charts to understand better.