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.
Sell USD/JPY
This pair seems to have hit some resistance close 121.90 and I sense possible weakness. What supports my prediction (or guess) is the appearance of regular bearish divergence near a major resistance level (121.90-122.00). Price has made a higher high, while the oscillator has made a lower high.
I'm going to short at 121.60. My stop loss (SL) will be 122.00, just above 121.90. It might be a little tight but I don't expect price to retest resistance. If it does, I'll be sweating. My profit target (PT) will be 120.50, it's previous support.
Sell USD/JPY @ 121.60 | SL: 122.00 | PT: 120.50
