Hi guys i am a long time reader first time poster. I will now start contributing to these this forum
What’s visible in the above chart?
Double Bottom
Forex Trading Circle – Double Bottom Reversal Pattern
[B]Analysis 08/03/2012[/B]
GBP/JPY drew some support from 126.56 and if the resistance at 130.000 breaks we could see more upside. A at 130.000 will confirm resumption of whole rise from 117.00. The choppy decline from 163.00 is viewed as part of the down trend from 163.00. There could be enough evidence to suggest that this whole fall is over. Focus is now turned to 140.00 key resistance. Sustained break there will firstly indicate completion of fall from 163.00 (you can’t see 163.000 in my picture). There is also a prominent double bottom reversal pattern where the key resistance has been broken at the 127.000 zone indicated by the purple arrow. This zone hasnow become support.
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Forex Trading Circle – GBP/JPY Double Bottom – Support And Resistance
[B]What do the labels mean in the graph?[/B]
Red line - Support Level.
Green line - Resistance Level.
Arrows - Represent key points in the formation. If its a head and shoulders formation I will place arrows at the shoulders and head.
Thumb - When the price reaches near the thumb that is when we need to look for clues to enter.
[B]My move[/B]
My Move is to wait until the 130.000 zone which will confirm the resumption of the prior up trend