Wednesday, August 27, 2008

8-27 Looking at 2 Trades

The first set up is very close to my entry. Right now it is 10:45 EST and near London close. The USD/CHF may be setting up a head and shoulders pattern. Something I have observed is that the probability of this type of pattern fulfilling goes up if the neck is tilted in the direction of your trade. My entry on this trade will be near the highs of the right shoulder at 1.1030 (short). I will wait and see.

The other trade set up is on the USD/JPY pair. I don't trade this pair that often but a nice BBB (bull bear battle) pattern seems to be unfolding. I might would consider this trade near the 79% of the overall move and at the back side of this trend line. I mainly am looking at where support became resistance at this level and how price has struggled here on the longer time frames. I think 110.10-20 area may present a very good trade.