All Trade Ideas and trading scenarios found on FX360.com are hypothetical. FX360.com has not placed these Ideas in a live trading environment. Forex Trading involves high risks, with the potential for substantial losses that exceed your initial deposit and is not suitable for all persons. Past performance is not necessarily indicative of futures results.

Update: Will GBP/JPY Resume Uptrend at 136.10?

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.

Last updated 3/19/2010 5:57 PM EST (GMT -5) 10 Comments

• Share this:

Bradley W. Gareiss

Technical Analyst, GFT

We have entered the bullish Gartley on the GBP/JPY that we posted yesterday.  The trade had borderline long bars, so I wouldn't blame you if you skipped this trade.  However, I "count" the borderline trades to make the site's results as transparent as possible.  The trade nearly stopped out, but managed to hang on and rise towards the end of the week.  Since the pair moved below our hypothetical point D, we have to move our profit target to 136.67.  For a more detailed explanation, see the following link: Adjusting Profit Targets .  Below we will recap why we took the trade because it is still possible to enter at or below 136.10 as long as the trade has not been stopped out or reached our profit target at 136.67.

We bought (and can still buy) the GBP/JPY at 136.10 (Point D).  Point D is located at the convergence of the following points:

To recap, we bought (and can still buy) the GBP/JPY at 136.10 with our stop placed at 135.58.  Our adjusted profit target is 136.67 (38.2% of CD).

• • 
    
  • 4hr Chart - Trade entered near the the bottom of the bullish channel.
  • 
    
  • 1hr Chart - Bullish Gartley.

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.

• Share this:

Comments (10)

naijafx

March 21, 2010 at 04:12 PM ET

Looking at the chart, i have a bullish BAT at 135.54. with the following convergence
88.6 retracement of XA
1618 fib extension of AB
dont u guyz trade BAT?
I think larry, whom u guyz tailored ur trading methodology with does so. i have never found trade due to BAT posted here
my thought

Marvino

March 22, 2010 at 10:52 AM ET

what's BAT?

bgareiss

March 22, 2010 at 12:40 PM ET

A bar is a specific type of pattern that uses the same basic principles as the patterns we use. The conditions (as far as I know) are the following: Point B is less than 61.8% of XA, CD and 127.2% of AB, Point D is at 88.6% of XA, and Point D is at 161.8% of BC. To me, this is just a type of "Gartley" pattern that someone made their own by specifying detailed ratios. I don't care about the name someone named a pattern online, I care if there are at least three levels of support or resistance that naturally occur in the same spot on the chart. The correct pattern here was the one we posted. This was a textbook Gartley pattern (D is 78.6% of XA, D is 161.8% of BC, AB=CD, and the pattern completed at the bottom of a bullish trend line). The main problem with this trade was that we had questionable long bars at the end of the CD leg. I "counted" this trade because it was only questionable, but I also said I probably wouldn't enter it due to long bars in a comment on the original article. Anyway, this chart would not qualify as a "bat" regardless because it's strict definitions are not met. The main condition that is not met is the Fiboancci extension of BC (88.6% of XA lines up with 200% of BC, not 161.8% of BC).

Brad

fishmanszmit

March 22, 2010 at 10:18 AM ET

Too bad..... Stopped out big time!

bgareiss

March 22, 2010 at 12:58 PM ET

It was stopped out, but this comment brings up a point I should probably write about further. To me, there should be no "big" wins or "big" losses. Each trade should be weighted equally. Some will win and some will lose, but over the long run the goal is to be profitable. In my opinion, the less one "cares" about individual trade results, the better. For example, I lost this trade after the open, but also won the NZD/USD after the open. Due to my general risk:reward ratio of 1:1.5, this is a winning proposition. For instance, if you risk 2% on each trade, then we lost 2% on one trade and one 3% on another. Therefore it is a simple gain of 1%. Of course, the idea is to look at a much larger sample of trades over a longer period of time to determine how things are going. But the point is that each individual trade shouldn't inspire any great joy or great regret as long as your trading plan was followed.

Brad

Marvino

March 22, 2010 at 03:02 PM ET

Good philosophy Brad. I’m new to all of this so I appreciate your time:)

GavJam

March 22, 2010 at 03:35 PM ET

Brad,
That's exactly the point that many traders , seasoned and amateurs need to learn. You really hit the nail on the head there with saying no need to inspire any great joy or regret over a single trade.

Too many people will get a few winning trades and feel invincible for it to be followed by losses which makes them feel the exact opposite and so they risk big to make up the loss but lose again and then the downward spiral begins. Trading on emotions is never good!

If all traders could follow your advice of having a solid trading plan then they would become more profitable.

paisa954

March 22, 2010 at 03:49 PM ET

I totally agree with you this business is very psychological, if you get exited about winning or loosing you are in the wrong business you must understand that winning is your job and loosing is also part of the job because that is were you learn the most. In two words Risk Control....

paisa954

March 22, 2010 at 03:51 PM ET

This is a great Comment

bgareiss

March 22, 2010 at 06:42 PM ET

I am glad that my comment struck a chord because I believe it touched on an important aspect of trading.

Brad

Add Your Comment

Please login to post a comment or sign up for an FX360® account.

Loading...