Thread: GBP/JPY Equity Building Profitable trading strategies
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Old 09-01-2008, 07:32 PM
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Andrewunknown Andrewunknown is offline
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Originally Posted by Andrewunknown View Post
Good morning, Trav:

I think this has been mentioned here or on the GBP/JPY winning strategies thread before, but the move from 192.64 to 215.89 was a rising wedge off of the decline from 252. Rising wedges are (sometimes unreliable) continuation patterns. The initial textbook goal for such a pattern is a 100% retracement from peak to trough: so, 192.64. Keep in mind because this a continuation pattern the pair could (by definition) continue on after that.

194 may turn things back: certainly the pair is very oversold...but I don't think so. Best to stay away from longs (unless you're adding equity for this strategy, of course) until the pair is firmly based out. All those upper wicks that are roughly 50% in length of the candle body on the 1H candles since 0400 ET this morning don't inspire much bullish confidence.
Speaking of which: just made 192.69
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