Scenario and Strategy as seen on Point and Figure 5-minute chart

Hello!

I’m Satori, here to study FX.

Today I will deliver the scenario and strategy seen on the Point and Figure 5-minute chart.

The figure below is the 5-minute USD/JPY Point and Figure chart.

http://livedoor.blogimg.jp/fxmt4indicator/imgs/1/f/1f8c9026.gif

In the figure above, the bottom of the leftmost X is October 26, so the chart spans about 10 calendar days.

Since the lower edge of the blue trendline is rising, what can be read from there is: as it moves down, buy; as it moves down, buy; after breaking the green upper resistance line and then ranging, that line changes its role to a lower support, i.e., it has become a resistance-turned-support.

If you expect a further breakout above the recent consolidation, for a contrarian approach, buying around 113.10 is a possibility.

If you want to wait a little longer, you could wait to break above the current consolidation upper limit around 113.28, or range a bit higher before entering.


However, a stop loss would be best placed when the price breaks below the low trendline, but doing so would require waiting for a while.

Please also form your own scenarios and try them out.


Indicators related to today’s article are as follows.