Now this is interesting…
I personally do not make weekly time frame trades, but I know a lot of traders do. Let me make something super clear; there is nothing wrong with trading the weekly time frame.
It is just a personal preference of mine and as long as before entering you have made sure you are not going to get stung on overnight holding costs, holding for weeks on end and then realise your profits have actually turned into a loss because of rollover, then you are good to go.
Depending on how this chart closes at the end of the week, it could be a pin bar reversal. You will notice that the pin bar already has a lower wick on it and that is because just below it there is a minor support level around the 89.00 area. What price does at the end of this week is going to be incredibly important for those of you who do make weekly chart trades.
AUDJPY Weekly Chart
Price is in the process of forming a huge Bearish Engulfing Bar = BEEB on the AUDJPY, depending on where it closes.
As I write this charts in focus post; price is looking to break the major daily price flip level and close below it. Where price can and cannot close it MAJOR information and tells us a lot about the overall story of the price action chart.
You can read the lesson at The Secrets Traders Can Learn From Candles and Price Action
I have attached the 8 hour chart below to give a really clear picture for you of this level and show how price is now below this level at the moment.
If you want to create your own 8 hour chart and create any other time frames on MT4 you can download the indicator here.
AUDJPY Daily Chart
1 Hour Chart
This daily level is crucial as it acting as the major price flip level.
No matter how small of time frame we move to, we keep the daily level as our major level to hunt our A+ triggers.
If you have a look at the intraday 1 hour chart below you will see I have the same daily chart level marked.
Price could now make a super quick pull-back and re-test higher into this level and this could be a potential high probability level to hunt short trades should price fire off any A+ bearish price action triggers to get short with the recent momentum.
AUDJPY 1 Hour Chart
AUDJPY 8 Hour Chart