Let’s consider the USD/JPY currency pair on the daily chart. The price broke the upper triangle side, having made a corrective reversal. This signal may be regarded as the bullish trend expansion. At the moment the daily uptrend showed a higher peak and trough, which are confirmed by Parabolic points and Donchian Channel boundaries. This might suggest that both levels are significant enough.
There is no contradiction signal from RSI-Bars oscillator: its bars formed an uptrend channel. The trend strengthening may be expected after the resistance breakout at 58.4355% on the oscillator chart. We expect it to happen following the price level breakout at 120.452. This mark can be considered for placing a pending buy order. Note that Parabolic trend indicator will perform a reversal in the direction of the green zone after this price level crossing. Stop Loss is recommended to be placed at the support level 118.466. This level comes across the support line of the trend channel and also the upper side of the triangle, which makes the level stronger. Stop loss is to be moved near the next fractal low, following Parabolic values (trend-following strategy). Thus, we are changing the probable profit/loss ratio to the breakeven point.
|Buy stop||above 120.452|
|Stop loss||below 118.466|