Text book approach (a real life example)

Well over the course of this week I have been watching the EURJPY quite closely.

Now we all hear about patterns and thing of that nature. One in particular is the pennant.

This link here is the 1st of the charts I posted on the EURJPY. Does not look like much yet. And then a day or so later in this chart shows a small trend.

As you can see I have not spotted the pennant yet. As time goes on you see in this post my trend lines change as I pick up on the pattern forming.

This is the point I was looking for, and this is the end result.

Though I would shed some light on this as although they do happen all the time not always so clearly seen and often open to interpretation (as is my drawing/calling this a pennant) as each trader will see things differently.

Remember you are you ultimate indicator and what works for another may not for you. As you can see. I don't use indicators and have not looked back since.

So yeah just though I would give back a little to a place that has given me so much.

This is a great demonstration of how trades evolve in real-time. This is important for all new traders to see chronologically how a pattern forms and the thought process of the trader watching it. Take note!

Often times we can't see the whole picture right away, but once the pattern is in place we need to take decisive action to capitalize on the opportunity presented. Notice how Sniper changed his/her trendlines in preparation for a possible trade as conditions changed and new information became available. This is a wonderful example of staying adaptable and dynamic in a constantly-changing environment.

Also, Sniper had a hunch that a pennant pattern was playing out, but s/he knew that an entry wouldn't be warranted until the upper trendline was taken out. This is what successful traders call "waiting for a trade to come to them." In other words: patience.

The only thing I'd like to ask Sniper is what s/he uses for stops/take-profits and how often s/he is able to trade these pennant patterns! Thanks for your excellent post!!

-=DAVE=-

Well done & a good presentation. I think one of the points that should really be emphasized is that you waited for the outside close. Patience is a virtue in this game