Scanning for chart patterns in real time
Autochartist makes it easier to trade successfully with its tools that automatically identifies chart and Fibonacci patterns.On the USD/JPY, the 240-minute time frame could shed some light on the range-bound price action. Despite making a lower low this week, at 83.67, the downtrend on the daily chart seems to be struggling to maintain negative sentiment intraday, with prices beginning to find a range above 84.00. The Rectangle pattern alert on the 240-minute chart shows that volatility has dropped significantly enough to register an Initial Trend of just one bar. This means that the current market direction is not only sideways, but also less volatile—meaning a more predictable floor and ceiling.
Because of the one-bar Initial Trend reading, the set up for this pattern is to wait for momentum either higher through resistance or lower through support; the upper level of the Rectangle is at 85.97 while the lower level waits at 83.68. Since the overall trend is still down, there will likely be a bias for a breakdown, but the continuation of the USD/JPY downtrend depends on a break of 84.00 as well as a reinvigorated bearish sentiment.
