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Todays GBPJPY monster short trade using the H4 RSI Trigger short part1

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GBPJPY Monster Short: Monthly Flip Zone and H4 RSI Trigger Short

A strong short in GBPJPY does not start on the H4 chart. It starts with a brutally clear higher-timeframe story: pound weakness, yen strength, and a major monthly resistance that has refused to give way for months. Only after that framework is in place does an H4 RSI trigger short become high-probability rather than a random stab in the dark. This lesson walks through how a “monster” trend short is built from the monthly and weekly swings down into the execution timeframe. The focus is on support-becomes-resistance (SBR), resistance-becomes-support (RBS), accumulation ranges, and the classic “swan song” stop-run before a larger drop.


Market Context & Setup

The market is GBPJPY, with a clear macro theme: pound weakness and yen strength dominating the landscape. On the monthly chart, shorts are “the order of the day”. Price has rallied into a well-defined resistance area that has held for several months, forming a cap that price simply cannot close through. This monthly structure is not just a single line on the chart. It is a multi-month flip zone where candles have pushed up, wicked through, been rejected, and closed back below repeatedly. Every time price tests this zone and fails to close above, it reinforces the idea that larger players are selling into that area. Beneath current price, the monthly chart shows old lows and prior support clusters, but they are not yet in play. The immediate focus is the resistance that has stopped price several times and has never been closed through convincingly. That level becomes the backbone of the short idea. Dropping to the weekly timeframe, the picture is one of transition from uptrend to downtrend. There are weeks of support that price must break, plus a clear weekly resistance that has already flipped from support to resistance and been retested. The sequence of highs and lows is shifting: instead of clean higher highs and higher lows, you begin to see lower highs and lower lows forming – the skeleton of a new downtrend. The short bias is therefore not based on a single candle or indicator; it is grounded in the combination of

  • A monthly resistance/flip zone that has repeatedly held.
  • A weekly break and retest of prior support as resistance (SBR).
  • A developing lower-high, lower-low structure on the weekly chart.
  • The broader fundamental tone of GBP weakness vs JPY strength.

Within that backdrop, the H4 RSI trigger short is not an isolated signal; it is the tactical trigger inside a pre-planned, high-probability short zone.


Core Tools Used in This Session

Monthly Flip Zone and Key Candle Highs/Lows

Darren starts by marking the monthly candle that most recently provided clear support and resistance. The high of that candle becomes a key resistance reference; its low can serve as a longer-term support reference. If price has never closed through a given high, that high is treated as “massively significant”. In this session, one such monthly high forms a four-month flip zone where price has

  • Pushed up and been rejected
  • Dropped away
  • Returned to test the same region repeatedly.

That repeated failure to close through the high turns it into the primary ceiling for the impending short.

SBR / RBS: Support Becomes Resistance, Resistance Becomes Support

He explicitly calls out the classic SBR/RBS concept: old support becomes new resistance (SBR), and old resistance becomes new support (RBS). His mentor treated this as the central mantra of trend trading; Darren reframes it as “trading tests of old support and new resistance”. The rule is simple

  • When a significant level is broken, expect it to be tested again.
  • If support breaks, expect a retest from below as resistance.
  • If resistance breaks, expect a retest from above as support.

In this GBPJPY case, a weekly support level has been broken and then retested from below, confirming its new role as resistance and reinforcing the short bias.

Accumulation Range and the “Swan Song” Push

Between the major monthly high and the eventual breakdown, price often moves into what he calls an accumulation phase – what most traders label a range. Here, swings compress: you may see something like swing 1, swing 2, swing 3, swing 4 inside a band, without a clean trend. Darren warns about the “swan song”: a final upward push out of that range that

  • Attracts late retail buyers
  • Knocks out stops of early shorts
  • And then reverses violently to start the main downtrend.

Recognizing this “swan song” is key to not shorting too early and getting squeezed before the real move.

Trendlines on the Higher Timeframes

He draws trendlines on the higher timeframe swings

  • In the prior uptrend: low → high → higher low → higher high.
  • Once that trendline is broken, it becomes a trendline-based support that has failed.

The broken uptrend line, combined with the monthly flip level and weekly SBR, provides additional confluence that the market is shifting from accumulation into distribution and downtrend.

H4 RSI Trigger Short (Execution Tool)

Although this part focuses mostly on monthly and weekly context, the title makes it clear that the actual execution is an H4 RSI-based trigger. In Darren’s framework, the RSI trigger is used on H4 as

  • A timing tool to catch the turn inside a pre-defined HTF zone.
  • A confirmation that momentum is turning in line with the higher-timeframe short bias.
  • A specific bar or sequence on H4 that signals “now is the time” rather than guessing.

The important point is that the RSI trigger is not the reason for the trade; it is the execution switch within a bigger structural plan.


Trade Example: Building the GBPJPY Monster Short

  1. Start on the Monthly: Identify the Ceiling The first step is to mark the monthly candle that contains the extreme where price has failed multiple times. The high of this candle has never been closed through on a monthly basis. Every attempt to push above has been rejected, leaving wicks and failures. Darren marks that high as a key resistance line. Over several months, price visits this region, fails to close through it, and reverses. This repeated behavior defines a strong ceiling and creates the multi-month flip zone.
  2. Confirm the Story on the Weekly: Break and Retest Moving down to the weekly chart, he identifies prior support that has now been broken. Price pushes below that support, then comes back up and retests it from underneath. This is textbook SBR: support becomes resistance. At the same time, the weekly swing sequence begins to show lower highs and lower lows. Instead of continuing the uptrend pattern (higher high, higher low, higher high), the weekly structure flips contextually to:
    • High
    • Low
    • Lower high
    • Lower low.

    Combined with the failed attempts to close through monthly resistance, this confirms the macro shift toward a downtrend.

  3. Recognize the Accumulation Phase and Avoid Premature Shorts Before the breakdown accelerates, price moves sideways in a multi-swing range under the monthly high. This is the accumulation phase of the larger downtrend – price oscillates between support and resistance, trapping both buyers and sellers. Darren emphasizes that this is where he has been caught in the past: shorting too early inside the range, only to see price spike higher in the “swan song” move. That final spike tends to:
    • Attract breakout buyers
    • Run the stops of early shorts
    • Clear liquidity above the range
    • Then reverse sharply.

    The lesson: accept that this swan song is often part of the process and do not assume that the first dip is the final turn.

  4. Project the Likely Retest Zone for the Short From this monthly and weekly structure, he projects where price is likely to retest before the main drop:
    • The broken weekly support that should now be tested as resistance.
    • The underside of the monthly flip zone.
    • The descending structure line from recent highs.

    These become the “short zone” – an area, not an exact pip-perfect level, where a short is both logical and aligned with the big picture.

  5. Wait for the H4 RSI Trigger Short With the zone defined, he shifts his focus to the H4 chart. The job of the H4 RSI trigger is to:
    • Confirm that price has reached the pre-planned resistance/SBR area.
    • Show a clear momentum turn back down (RSI behavior, candle formation, etc.).
    • Offer an entry with the higher-timeframe story firmly behind it.

    Instead of shorting blindly at the first sign of weakness, he waits for that H4 trigger to fire inside the higher-timeframe resistance zone. That combination – monthly flip, weekly SBR/downtrend, and H4 RSI trigger – is what turns a normal short into a “monster” high-probability trade.


Practical Rules & Checklist

  • Always start with the monthly chart on pairs like GBPJPY. Mark the last major candle whose high/low has repeatedly held and whose high has not been closed through.
  • Treat any level that price cannot close above for several months as a major resistance flip zone, not a minor line.
  • On the weekly chart, explicitly label swings: high, low, lower high, lower low. Do not call it a downtrend until the sequence actually shifts.
  • Draw and track SBR/RBS: when a clear support level is broken on the weekly, expect it to be retested from below as resistance at some point.
  • Accept the accumulation phase under major resistance as part of the process; do not assume that the first lower high is the final top.
  • Expect a “swan song” – a last push up through or toward the range highs – that clears stops and invites late buyers before the real move.
  • Plan your short zone around the confluence of: monthly flip level, weekly SBR, and descending swing structure.
  • Use the H4 RSI trigger as a timing tool inside that zone; do not take RSI signals in isolation away from the higher-timeframe levels.
  • Remember that price rarely moves in a straight line. Build expectations for pullbacks and tests into your plan instead of being surprised by them.
  • Once the higher-timeframe structure confirms a downtrend, focus on selling rallies into resistance, not chasing price after it has already dropped.

Darren’s Mindset in This Lesson

The mindset running through this session is methodical and deliberately slow. The trade is not about catching every wiggle; it is about understanding the long story told by the candles and then using that story to frame one big, asymmetric short. Key points

  • Structure first, signals later. He refuses to start on the H4 RSI. The RSI trigger only matters once the monthly and weekly levels are understood and marked.
  • SBR/RBS is non-negotiable. Fifteen years of repetition have convinced him that broken levels get tested. That expectation is not a small detail; it is the core of how he thinks about trends.
  • Respect the “swan song”. Instead of blaming the market when price spikes against shorts, he bakes that behavior into his planning as a deliberate liquidity hunt.
  • Patience over excitement. There is no rush in his analysis. The “monster” short is the result of waiting for all the pieces – monthly resistance, weekly SBR, accumulation, swan song, and H4 trigger – to line up.

This mindset turns trading from reactive guessing into structured hypothesis testing: define the levels, wait for the test, and then press the trade when price confirms the story you have already drawn.


How to Apply This on Your Own Charts

To use this approach yourself, treat every major trend trade as a top-down project rather than an H4 signal hunt. Start with

  • Monthly chart: Mark the most recent key highs and lows where price repeatedly reacted and failed to close through.
  • Weekly chart: Identify clear SBR/RBS flips and check whether the swing sequence is genuinely shifting from uptrend to downtrend (or vice versa).
  • Projected short/long zone: Build an area where price is likely to retest – old support now resistance, or old resistance now support.

Then execute with

  • H4 as the trigger timeframe.
  • Your chosen RSI trigger behavior to confirm momentum turns within that pre-planned zone.
  • A focus on selling into rallies (in a downtrend) rather than chasing price after it drops.

Used this way, the H4 RSI trigger short on GBPJPY is not a standalone trick but a closing chapter in a much longer structural story that starts on the monthly chart and ends with a disciplined, high-probability entry.

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