In this article, we are drawing Pitchfork channels on EURJPY
On the weekly EURJPY chart, we can see that the pair has broken below the 130 level of the uptrend Pitchfork channel. This break is significant because it is coming after almost two years of the swing upside from 110 level. Now as long as the pair holds below the 130 level we could see a downside extension into the 125 level of the long-term support.
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
Andrews Pitchfork trading technical analysis education! Join today for the new group!
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On the daily chart, there is a new downtrend Pitchfork channel that could lead to a test of the median Pitchfork channel line 124 level. Use the chance to enter a good risk to reward short trade entry with the stop loss above the 130 level, targeting 126 and 124 level lower.
Happy trading! (click on the chart to enlarge it)
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