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Currency : GBP/JPY
Time Frame : Daily
Time & Date: 12:24pm /29.02.2008 (GMT+8)
Reason for trade : Price broke Bollinger Band Outer Band & There is a Triple Top Formation
I shorted GJ @ 208.32
I put Stops @ 213.96
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Currency : EURO/CHF
Time Frame : 30Minutes
Time & Date: 10:14am /25.02.2008 (GMT+8)
I Long @ 1.6110 because of a Falling Wedge BreakOut
Stops @ 1.6066
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Currency : EURO/USD
Time Frame : 15Minutes
Time & Date: 10:26am /25.02.2008 (GMT+8)
I Short @ 1.4824 because of a Rising Wedge BreakOut
Stops @ 1.4862
At the time of writing, I am at 7pips profit
Seems like the Double Bottom that I’m expecting, failed. Most probably GJ is going to go down, wayyy down. If price breaks 209.05, SELL!! it’s going to go down… a lot.
Bollinger Band is squeezing tight, once a breakout happens, its going to be quite a BREAKOUT!. Guppy Multiple Moving Average(GMMA) Short Term Trader is squeezing, but Long Term Trader is expanding. Very gray area now, Long Term GMMA could start to squeeze anytime now, and reverse, but it could also resume downtrend.
What I would do, is wait for Bollinger Band (Period 20, Shift 0, Deviation 1) to close a 2nd candle outside the band (lower or higher band), then only I would make trade. Short if it breaks the lower band, and long if it breaks the higher band, and put Stops at the middle band.
A double bottom is forming in GJ TF Daily.
Double bottom or a”‘W” is trend reversal signal. It is a chart pattern with 2 bottoms, very close in price, or the 2nd bottom have a higher low than the 1st bottom.
Profit Target
When price breaks out of a double bottom formation, the price target is the range of the formation added to the breakout level. Which in the case of GJ, the price could actually go up to (213.97(highest price) - 204.59(lowest price) = 938pips) = Breakout @ 213.97 + 938pips = 223.35
After grueling hours of doing sideways, EU finally managed to break the Broading Formation Neckline.
Chart Pattern works like a charm 
A Broadening Formation is one of my favorite reversal patterns.
It usually appears at the near end of a major bull market.
Is is actually an inverted triangle, or a triangle turned backwards.
If a flag and pennants usually are bullish pattern, a Broadening Formation is
actually the opposite. It is a strong Bearish signal.
Best way to trade:
Sell when the price breaks the 2nd bottom.
And the target is 2/3 from the beginning of the rally.
Or at the fibonacci 61.8.
Or you could also use WolfeWave as to determined the target profit.
Draw a trendline fro 1 to 4 and the target point is somewhere
at the end of the 1-4 trendline.
Updates on 21/02/08
Wuuhuu.. Sorry for the late updates, but the price went down to Fibo 61.8, then bounce to Fibo 50.0, and after that went all the way to a new low of 1.4439.. Sweet
There is a “Head and Shoulders” Chart patterns in TF Daily GJ. Head and Shoulders is a strong trend changing patterns.
The Head and Shoulders Pattern is generally regarded as a reversal pattern and it is most often seen in up-trends. It is also most reliable when found in an up-trend as well. Eventually, the market begins to slow down and the forces of supply and demand are generally considered in balance. The Following is a Typical Trend of a Head and Shoulders Pattern
Sellers come in at the highs (left shoulder) and the downside is probed (beginning neckline).
Buyers soon return to the market and ultimately push through to new highs (head).
However, the new highs are quickly turned back and the downside is tested again (continuing neckline)
Tentative buying re-emerges and the market rallies once more, but fails to take out the previous high. (This last top is considered the right shoulder.)
Buying dries up and the market tests the downside yet again. Your trend line for this pattern should be drawn from the beginning neckline to the continuing neckline.
Volume has a great importance in the Head and Shoulders Pattern. Volume generally follows the price higher on the left shoulder. However, the head is formed on diminished volume indicating the buyers aren’t as aggressive as they once were. And on the last rallying attempt-the left shoulder-volume is even lighter than on the head, signaling that the buyers may have exhausted themselves.New selling comes in and previous buyers get out. The pattern is complete when the market breaks the neckline. (Volume should increase on the breakout.)