My GBP/JPY Trade (25-10-2007)

*Attached chart. Click on it for the enlarged version.

Hello everyone! How is everyone doing? This week has been one interesting week :P Hehehe!!! Anyway, this is one of my many many trades this week. Yesterday, I was happily whacking the EUR/JPY, squeezing as many pips out of the market :P Hahaha!

This particular trade of mine is very very rare. One of few times that I will actually touch the GBP/JPY. I have just initiated a long position on the GBP/JPY at 12:00am (Singapore Time), the stroke of mid-night and hence a new date [25-10-2007], at the price line of 233.54.

Why did I initiate a long position? This is a good question. Attached chart to this post. According to my chart, I am actually testing something. Something that I called a similar wave pattern.

From the channel that I have drawn, first line up which I call Line 1, followed by Line 2 which is coming down after hitting the resistance of the channel, little Line 3 going up, followed by Line 4 going down touching the support of the channel. Not only Line 4 touch the support of the channel, the last candle formed into a doji with a reasonable rejection tail. So Line 5 which I assume will be similar to Line 1, I drew it to expect the possible target profit.

Hence, initiated long position at the price line of 233.54 with Target Profit at 237.70 and Stop Loss at 232.50.

This is a method that I am testing out which I want to share with you guys but please do not follow or take it as a trade idea, this is merely for education and entertainment viewing purposes. It might work and it might not work but let's find out together :) I will definitely update on the outcome of it.

Peace and trade safely everyone...