Thursday, January 21, 2010

GBPJPY—correction of double top goof in last post

I marked a short term double top on the GBPJPY three-hour chart I just posted but the confirmed double top I was referring to where I said the price objective was unmet took place on the daily chart back in June and August. As I wrote in Monday’s blog:

There has been a sideways pattern in much of 2009, just as there has been with the EURJPY. The bottom of the sideways pattern is 139.03 in the spring of 2009. The pair then climbed, making a double top at 162.60/163.09 in June and August of 2009. The trough of that double top is 146.77 and the pair broke below it in September to a low of 139.71. The price target from that pattern was 130.45 (Peak to trough subtracted from trough or (146.77 – (163.09 – 146.77)).

© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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