Triple Bottom in GBPJPY | Forex Factory

  • Triple Bottom in GBPJPY

    It looks like GBPJPY is in the process of sewing in a potential triple bottom on the daily chart. This pair also looks to be in a position to close above an intermediate-term bear trend line on that same daily chart -- see below. I started to see the strength at hand this AM as I was eyeing a short in this market and in EURJPY at last Firday's highs on the intraday charts. GBPJPY did not give me a trade signal/trigger, and I watched it break out above the previous session's high and rally right up through the Daily R1 Pivot without pause. The carry pairs are still heavily correlated to U.S. Stock Indices, meaning we need to keep an eye on the Dow and S&P futures and be aware if they are accelerating lower, and wait for today's currency close to confirm this bullish intraday behavior. However, if the intraday stock index rally does not fade in the afternoon, we may be set up counter-trend buy signals today on the daily GBPJPY and EURJPY charts. The next resistance level above for GBPJPY is last week's high at 147.90 Jay Norris [url]www.brewerfx.com/jnorrisedu/[/url] DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. In no event should the content of this correspondence be construed as an express or implied promise, guarantee or implication by or from Brewer Futures Group, LLC, Brewer Investment Group, LLC, and/or its subsidiaries and affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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Takisd
Nov 24, 2008 4:23pm
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I only see 2 bottoms there..... You may need to look closer.
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Takisd
Nov 24, 2008 8:30pm
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you will find a tripple bottom looks like this VVV not ____/
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fxterrapin
Nov 24, 2008 8:10pm
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Lol I don't see it either. If anything a false breakout on a descending triangle.
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Trout
Nov 24, 2008 4:57pm
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Hi Takisd,

I just cleaned off my bi-focals and I still see three tests of the low.

There is an old trading saying that is tailor made for this time of the year: "Don't get caught short in a quiet market".

My favorite trading adage though is still "Lose your opinion, not your money".

I have no attachement to either sell, or buy signals; though I do have a definite aversion to losing money.
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Trout
Nov 25, 2008 7:02am
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Thanks You FXTerrapin,Takisd & Harvest,

I've had a re-look out of respect for the majority.

Technically it's not a tri[le bottom until it closes above the highest point between the lows, in this case the late Oct high.

I suppose that second low, in the middle does not exactly mark a significant low either in the at the bounce was small, which would disqualify it from a text book triple bottom, where we would see significant bounces between the lows.

The bottom line for me is that we do not anticipate which way it comes out of here, we understand it can go either way and trade accordingly.

This was copied from stockcharts.com which has won awards for their technical analysis:

"As the triple bottom develops, it can start to resemble a number of patterns. Before the third low forms, the pattern may look like a double bottom. Three equal lows can also be found in a descending triangle or rectangle. Of these patterns mentioned, only the descending triangle has bearish overtones; the others are neutral until a breakout occurs. Similarly, the triple bottom should also be treated as a neutral pattern until a breakout occurs. The ability to hold support is bullish, but demand has not won the battle until resistance is broken. Volume on the last advance can sometimes yield a clue. If there is a sharp increase in volume and momentum, then the chances of a breakout increase".
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harvest
Nov 25, 2008 3:23am
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i think Taksid is right
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