AUDJPY long investigation on the H4

H4 confirms the obvious, already noticed: short traders have been taken for a ride and now the long traders are also trapped. Could short traders be trapped soon, when they are caught in the middle once again? We are in the middle again.. short? long? Keep? Close? Getting late, US session ends soon, what can a trader expect? If a position opened, should he or she keep or close it? Should an SL level be set? But then it would be hit at market close or open… Wife calling to come for a dinner, kids should be bathed, a story read so they fall a sleep easily… Stressful, isn’t it?

Let’s see what H4 is telling us. Because we have strong 2 daily candles to the upside, we only need to understand the move to the downside. The areas where price – or its sections/levels – could end are indicated with horizontal red lines. It all depends on the lower TFs. We do have clarity on the first 2 white candles but due to variations of price hitting lows after leaving Level 2 areas, we can not be sure at this time whether price’s final destination has been reached already or not. We need to check H1 for more information.