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CAD/JPY Short at 88.96.

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Last updated 1/13/2010 9:15 PM EST (GMT -5) 6 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

A bearish Gartley is forming on the CAD/JPY.  The CD leg initially had long bars, but the pair has now slowed down.  Still, it is important to watch for a long bar at the entry.  The price symmetry on this set up, however, is good.  The area we are looking to sell in has seen a lot of past support and resistance.  Some of the more recent high/lows have been circled on the 2hr Chart below.  

We are looking to sell the CAD/JPY if it rises to 88.96 (Point D).  Point D is located at the convergence of the following points:

This is a fairly straightforward trade so we will jump into possible red flags that could invalidate this trade.  We will watch for long bars in the CD leg.  Although the trade is near entry, we could still have a long bar to complete the trade.  Also, the pair could still drop before entering and then rise to the entry with long bars. The trade is also invalid if the pair falls below 88.43 before hitting our entry.

CAD/JPY

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  • 2hr Chart - Trade would enter at area that has provided a lot of recent support and resistance.
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  • 1hr Chart - Bearish Gartley; sell at 88.96

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

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Comments (6)

Semaj

January 13, 2010 at 10:01 PM ET

This one looks to have high probabilities with larger time frame momentum. Cool :)

INNSIDH

January 14, 2010 at 04:18 AM ET

Oh yea look at the chart.
Djeezes STOP POSTING THIS CRAP OF MUMBO JUMBO PREDICTIONS.
DJEEZES WHAT KIND OF JUNK IS THIS ANYWAY.

Semaj

January 14, 2010 at 07:36 AM ET

I didn't stay up long enough for a 4 min momentum shift for this scalp trade. Price did a 100% retracement of the last swing down and would have been stopped out. Oh well :)

cbrad

January 14, 2010 at 09:54 AM ET

i took this trade, thanks to Brad, but made it my own. due to the long bar, i exteded cd to 127.2% of ab which lined up exactly to 61.8% of XA, plus it was right on the resistance line on the 2HR. my entry was 89.25, with stop at 89.65. Hit my first target and in risk free on second lot. I take these trades and make them my own, and avoid some or most. They also dont post most good gartleys for some reason, and post the poor ones. Weird... If I took all their trades i would go broke.

bgareiss

January 14, 2010 at 01:33 PM ET

Moving to the next extension was probably the right thing to do. Unfortunately, we are really limited in the updates we can make now. Changes are in the works to make this easier. Brad

margaret

January 14, 2010 at 05:30 PM ET

It's good you have another opinion cbrad. Why not share it. Maybe we could all benefit. I love these guys, they are very personable in their approach. I have learnt heaps but nothing to the extent of your knowledge. I'm slowly going broke with stop losses, its hard to monitor when your on pacific time

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