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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

 Wow.. How I wish I could have this monitor..

8 monitor screens, I could trade 8 currency pairs simultaneously,

without the ‘hassle’ of having to click those small currency tabs

But the real question is.. Will it make a better trader?

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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

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I went LONG when price breaks Resistance Fractals @ 1.4779.
Stops @ 1.4589 (Last Support Fractals)
Took profit @ 1.4913 (Stochastics OverBought)

I went SHORT when price breaks Support Fractals @ 1.4589
Stops @ 1.4922 (Last Resistance Fractals)
Took profit @ 1.4365 (Stochastics OverSold)

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The GJ trade was executed @ 1.24pm (GMT+8) @ 209.22, for 1 Lot.

I took the trade, because of Chart Pattern BreakOut, there was a Symmetrical Triangle prior to the breakout. The last resistance was @ 210.19.

Since GBP/JPY spread is 7pips, the ask price is @ 209.29.

1st sell stop is placed @ 209.27, as the price goes higher, the sell stop was moved to 210.38, the low of the last Bullish Candle.

The Sell Stop was met @  2.42pm (GMT+8)

Giving me a total profit of USD83.21

End Of 1st trade

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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

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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

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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