Here’s another trade idea result that I hope you like.

Click here to see the original idea.

And here’s the chart.  The pair easily made it down to the green BaseLine.

To see the original trade idea, click here.

Now for the update: the trade is open.  Moving towards our target, the green BaseLine.

The GBP/JPY is setting up for a possible big fall.  Here is what I am looking for in the early signs of a breakdown:

a close below the blue EntryLine.
then a move to the green BaseLine.

Here’s a view of both lines, and then we will move to a lower time frame chart for the entry.  This is the 1 HR chart:

And here is the chart from which we can manage the trade — the 30 min chart:

Our short GBP/JPY position took a while to play out, but it did work out.  The pair finally fell after going sideways for quite a while. Once again, for the record, I really dislike to wait for a pair to fall like this — I prefer to see the pair, once it breaks a trendline, to really put its back into moving fast in the direction of the profit target.

See the original trade idea here.

I would like to see much, much more movement on this pair downward.  It’s just a 5 minute chart, so what should we really expect from it?  The fact that the pair broke the trendline just because it went sideways is a concern to me.  The fact that it broke the trendline and then did nothing — that is also a concern.

The stop loss is up at the red dashed line.  I’m going to give this trade a little bit more time.

A break of the blue line should take us down to the green support line.

The Supreme Court votes "Yea" to this trade.

The GBP/JPY scaled back even further on the world’s new-found aversion to risk last night.  I stayed up late because I went to see Get Smart.  After the movie, I drew a shorter term trendline on the GBP/JPY — which you will see below — and kept the old green (base) trendline that you see below.  That’s the green trendline that we drew to use in our other GBP/JPY trade from yesterday — just jump back through the archives and check that one out. 

Here’s the chart, and the black box is where I sold again.  I took profit at the green line.  Sorry I didn’t get this updated last night for you.

It’s time to close the GBP/JPY trade.  It’s close enough to the trendline that it’s time to take the money and run.  Or jump (if you like making pips).

Happy trading.  Hope you like the more frequent updates.

In a heroic attempt to bring peace and stability to the world, two important events occurred today:

1.  George W. Bush declared that North Korea is no longer a terrorist nation;

2.  The GBP/JPY smoked the peacepipe of trendline love.  You’ve got to go back to the original trade idea (click here) to see how it was set up.  Here is the peaceful piping performed by this perfect pair:

The pair is on the way (quickly) to our green (base) trendline.  It is a beautiful day for trendlining.

The GBP/JPY has been ripping along, tearing apart anything in its path.  Well, that may be coming to a halt for just a bit — we can see the pair broke the little red trendline that we talked about a day or so ago but now is finally dropping back, to most likely hit the blue trendline. 

It would be nice if we could see a close below the blue line, and start our way back to the base (green) line.