GBP_JPN (110 Pips)
Technical Analysis: Triple Resistance Test Failure
Pattern Overview
A significant bearish signal has emerged with the triple resistance test failure, followed by a key reversal pattern at a high pivot point. This formation suggests increased selling pressure and potential trend reversal.
Key Technical Elements
1. Triple Resistance Test
- Price made three distinct attempts to break above resistance level
- Each attempt showed progressively weaker buying momentum
- Final rejection demonstrates strong selling pressure at this level
2. High Pivot Point Formation
- Created at the peak of the third resistance test
- Represents a critical turning point in market sentiment
- Historical significance as a major price level
3. Bearish Engulfing Pattern
- Large bearish candle completely engulfing previous bullish candle
- Occurred at a crucial technical level (High Pivot Point)
- Significant volume accompanied the pattern, validating its importance
Technical Implications
- The failure of three consecutive attempts to break resistance indicates strong overhead supply
- The bearish engulfing pattern at the pivot point suggests a potential trend reversal
- Expect increased selling pressure in the near term
- Previous resistance level now likely to act as strong resistance for future attempts
Risk Management Considerations
- Short positions should consider placing stops above the high pivot point
- Long positions should exercise caution and potentially reduce exposure
- Volume analysis crucial for confirming strength of the reversal
Conclusion
The combination of a triple resistance failure and bearish engulfing pattern at a high pivot point presents a compelling case for bearish sentiment. Traders should monitor volume and price action closely for confirmation of the reversal signal.
Pattern Overview
A significant bearish signal has emerged with the triple resistance test failure, followed by a key reversal pattern at a high pivot point. This formation suggests increased selling pressure and potential trend reversal.
Key Technical Elements
1. Triple Resistance Test
- Price made three distinct attempts to break above resistance level
- Each attempt showed progressively weaker buying momentum
- Final rejection demonstrates strong selling pressure at this level
2. High Pivot Point Formation
- Created at the peak of the third resistance test
- Represents a critical turning point in market sentiment
- Historical significance as a major price level
3. Bearish Engulfing Pattern
- Large bearish candle completely engulfing previous bullish candle
- Occurred at a crucial technical level (High Pivot Point)
- Significant volume accompanied the pattern, validating its importance
Technical Implications
- The failure of three consecutive attempts to break resistance indicates strong overhead supply
- The bearish engulfing pattern at the pivot point suggests a potential trend reversal
- Expect increased selling pressure in the near term
- Previous resistance level now likely to act as strong resistance for future attempts
Risk Management Considerations
- Short positions should consider placing stops above the high pivot point
- Long positions should exercise caution and potentially reduce exposure
- Volume analysis crucial for confirming strength of the reversal
Conclusion
The combination of a triple resistance failure and bearish engulfing pattern at a high pivot point presents a compelling case for bearish sentiment. Traders should monitor volume and price action closely for confirmation of the reversal signal.
Not
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Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.