June 9, 2008 04:48

Free Forex Signal – USD/JPY Flagpole Trade

Posted In: Free Forex Signals
By:

6-9-08

4:48 GMT – Hey we finally got a chart setup for a “free forex signal” – the first of June! USD/JPY rose 86 pips after bouncing off of strong daily support currently around 104.50. Pair made a nice flagpole over 4 hours and is currently consolidating between 105.25-105.40. Entry is 10%, or roughly 9 pips above the top of the pole at 105.45 (top of pole is 105.36).

RSI has plenty of room to run (right below 50).

Buy – 105.45
S – 105.20 (25 pips, pair True Range is currently around 22 plus 3 for spread)
L1 – 105.70 (25 pips, equal to risk)
L2 – 105.95 (50 pips, at bottom of 6/5-6/6 consolidation)

5:50a – SIGNAL CANCELED – Unfortunately our first free forex signal of June is canceled because of the false breakout (pair was fractional pips from catching my entries) and then a break to the downside. We will look for buying on dips. Aggressive traders can leave their entries but I would move them to 105.55, as their is obviously selling interest ahead of 105.50.

UPDATE – 17:26 GMT – Well I hope some of took my advice above and moved the trade to 105.55 or even left it alone. I set it up in my demo account to watch the results and both targets were hit for 75 pips gain (if I had been awake I could have trailed it up for another 20 or so). So the result of the signal is 0 pips, but the result of the aggressive trader is 75 pips.

Result: 0 pips

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