The EUR/CHF breakout that we were planning for, has happened.  The first profit target, and most reliable profit target, is the first red Winnipeg line above the channel.  It should get there sometime today, unless this trade is so ridiculous that it never can even get to its first profit target.

Be on the lookout for a close above the top of the channel.  It’s hanging around a lot up there, like it intends to make a move. 

I was unhappy with our old channel, so I’ve redrawn it and show some smelly perfume to go along with the channel, for good luck.

I’d like to see, in this descending channel, a close below the red trendline in the channel.  The profit target would be the middle fibble.

The GBPUSD did pretty much everything we wanted it to do.  It broke through the blue trendline and then promptly fell down to our red support trendline.  It was a 50 pip trade from the close of the candle that broke the blue trendline down to the red trendline.

I do enjoy drawing support and resistance on line charts.  I think it greatly simplifies the process to the point where the support and resistance zones are very easy to identify and trade from.

Here’s my next sort term trade on the GBP:

Yesterday we looked at the 4 hour chart and it created a buy trade on a break above the top of the channel.  Then the pair dropped and closed back inside the channel.  This means the trade stopped out.

The USD/JPY fell out of the channel yesterday and it created a great sell trade down to the next Winnipeg lines (the red lines on the outside of the channel).  Man, I love channels.

The pair is falling to meet the bottom of a rising channel.  If we get a reversal candle then we can take a buy trade and ride it up at least to the first fibble.

If the pair can close below the bottom of the channel, then it’s a sell opportunity.  And we can use the red Winnipeg lines for profit targets.

The EURCHF created a descending channel.  Our preference was for sell trades, as you already know.  You also already probably know that we never sell on a break outside the bottom of the channel — that is bad news and we don’t do it.  By the time it breaks below the bottom of a descending channel (or above the top of an ascending channel), the pair is tired and exhausted and the break is likely to be totally fake.

That’s why I shaded the bottom break in pinkish red.  That is a no-no trade.

On the other hand, we are willing to buy the pair if it can close above the top of the channel.  That is what it did at far right.  Once it closed above the top of the channel, we could buy.  We could also wait for the pair to fall back, and hit the top of the channel all over again before buying.

It’s vacation time and many are traveling instead of trading.  I’m going light on the updates until the start of next week, when I’ll be posting regularly every day again.