Overnight Shakeout For Longs Long

Euro Fx/Japanese YenFXCM

Description

⋅ May 19, 2015 6:31 PM

Last night's sharp move down accomplished 3 things:

1.) shook off longs late to the party
2.) cleared protective long stops sitting under 5/13/2015 lows
3.) sucked in fresh shorts

We are looking for EUR/JPY to get back up to 136, 137, and eventually 140.70.
We are also expecting some slowing/chop as we get back to the 135 area.

money2mauiforexsignalservice EURJPY

Comments

isomorph

⋅ May 20, 2015 5:41 PM

here's bulkowski's site, a great resource for all patterns--the guy must have OCD when it comes to technical patterns ;) : thepatternsite.com/flags.html

EURObull

⋅ May 20, 2015 6:17 PM

haha, impressive site...could be a "quad shot" espresso kind of guy : )

isomorph

⋅ May 20, 2015 5:38 PM

and there's something about that channel that seems almost like an expanding type of flag.... can't remember now if this is considered a bearish flag? the bullish flag pattern should be pointing downward, then price comes out of it to the upside. but here the direction of the channel is the opposite of your typical bull flag... damn it, what's it called again?

EURObull

⋅ May 20, 2015 6:16 PM

one of my mentors liked to call it the "megaphone", here is an online description for those not familiar with it: marketwatch.com/story/bearish-megaphone-pattern-calls-for-stock-market-selloff-2014-11-12

isomorph

⋅ May 20, 2015 5:31 PM

ok here's my screenshot with all comments in yellow call-outs: cl.ly/image/3J1L0G1b0O1B

EURObull

⋅ May 20, 2015 6:12 PM

That's one great looking chart and I am on board with your scenario #1 indeed.

isomorph

⋅ May 21, 2015 5:30 AM

thanks, but the colors are awful. i love your color choices but then if it's too pleasing to my eye, i wouldn't focus as much. ;)

EURObull

⋅ May 21, 2015 8:31 AM

haha, thank you. I know, I catch myself staring at these charts for hours still. Like we said before, a true passion!