ADVANCED TECHNICAL ANALYSIS

AUDJPY, MONTHLY 

PURE PRICE  ACTION ANALYSIS

In-depth price pattern action analysis includes majorly the following as we had discussed in the prevvious article. 

• Analysis of the major swing moves and how long they have been lasting
• Analysis of the corrective moves and how long they have been lasting
• The current probable status
• General conclusion on the pair 

Analysis of major swing moves.

The major swing moves are indicated by the green arrows have been averagely lasting for about 13 months and moving over 2400 pips. As i had mentioned in the previous article, understanding of the price action of these major swings enables you not to get out of the trades too early or too late. It also enables you not to make entries into an ended/exhausted swing since you now know how long they averagely last

Analysis of corrective moves 

The corrective moves have been lasting averagely 2 years, atleast twice the period of major swings. I have marked the corrective moves with gray ellipses. Observing how long these congestion zones helps not to enter the major swing trades too early or too late and the timeframes to trade on during different market phases

 Probable status.

The price is now in the congestion phase. The congestion limits are marked by horizontal lines A and C with B being the major pivotal zone. Close above A or below C will confirm the next major swing in the respective directions only when the congestion period has lasted on average as the previous congestions.

General conclusion

Understanding pure price action helps you to know what phase the price is in apparently. Congestion on the larger times like this monthly chart give great swings on the weekly and daily charts with trading mainly limited within the pink rectangle. Just like how those up and down swings on that monthly chart indicate congestion on the yearly time frame