Analysis

Monday, December 14, 2009

USD/JPY Trade 123 formation within Butterfly pattern

I found this interesting pattern in USD/JPY 4hr, I put my eyes on it to take a possible two pattern trades, the first one is bullish 123 formation, and if it works it'll form a bearish butterfly pattern.

According to the basic rules, there is impulsive wave and waiting for a pattern, there is a resistance in 78 fibo level, and not a support at 23 levels, which mean that it'll go up again to touch 1.27 fibo level, if the price find a hard support in 23 fibo level, then I'll go long to 1.27 levels to make my 123 trade, just waiting for a conformation for this trade.

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If this happened, I hope so, then I'll make a new setup to go short with a butterfly pattern, after getting the necessary conformation first.

I'm going to update this post till find a good pattern trade to take.
good luck for all

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Long with a 123 pattern

Things work as planed, now it forming a 123 pattern, I'll go long with this trend, my target is to touch at least 118 Fibo line, good luck every body

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