Order Of Magnitude » Patterns http://orderofmagnitude.ca Finding Patterns in the Market Fri, 14 May 2010 17:43:18 +0000 en hourly 1 http://wordpress.org/?v=3.0 High Probability Setup http://orderofmagnitude.ca/2008/07/09/high-probability-setup/ http://orderofmagnitude.ca/2008/07/09/high-probability-setup/#comments Thu, 10 Jul 2008 01:50:56 +0000 wdevauld http://orderofmagnitude.ca/2008/07/09/high-probability-setup/ USD/JPY has been trending upward for the last few months.  Normally it's against the rules to trade against the prevailing trend, although there was a setup today that is hard to pass up.

USDJPY July 9

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There was a selloff that tested the 107 - 107.02 region.  The support level held and the pair rallied over 107.60.  About 6 hours later another downtrend was established with the breakdown through the 107.33ish area straight down to the previous support level.  After attempting to rally a couple of times, it became apparent that the Bears were in charge and the price action showed the increased selling pressure.  A profit target of around 18-20 pips was established from the height of the descending triangle pattern, and when the price dropped below 107 we entered a short position as the price ripped downward, and very quickly we hit our 106.80 price target grossing a nice and safe 19 pips.

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