GBP/JPY has formed a pattern that looks like a double bottom
on its weekly Forex chart. It ends the descending trend wave that has
started back in August 2009, which itself is a part of the longer
downtrend with beginning in July 2007. The pattern isn’t perfect —
the second bottom isn’t exactly on the same horizontal line as the first
one, and the price haven’t rose to the initial point of the pattern
yet, so it may still form symmetrical triangles, a continuation pattern.
But, nonetheless, it’s a good a setup if you don’t jump into a trade
right away.
I use the horizontal channel setup as the entry/exit system for this
double bottom pattern. The borders of the ”channel” are marked with
the yellow lines on the image below. The entry points (cyan lines) are
located at +/-10% of the ”channel’s” height. Green lines show
the probable targets of the breakout trades — they are located
at +/-100% of the ”channel’s” height. Reymount Products:
Online Forex Trading, Online Cfd Trading, Precious Metals Trading
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