I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Buy USD/JPY
Hidden bullish divergence has formed here where price has made a higher low while the oscillator has a lower low. A possible sign of trend continuation, which in this case, is up.
The 4-hour chart confirms the daily chart with its own regular bullish divergence. Price seems to have found floor support at 122.00 while the oscillator slowly rises hinting of bullish strength. Throw into the pot that Japan fundamentals continue to suck while the US economy is currently perceived as "recovering", going long on this looks delicious.
I'm going to buy at 122.00. I'm hoping the market tries to retest this major support level one more time. My stop loss (SL) will be 121.70. My profit target (PT) will be 123.50.
Buy USD/JPY @ 122.00 | SL: 121.70 | PT: 123.50
