Top Trade Idea For June 5th, 2014 – USDJPY
By Mircea Vasiu on Jun 5, 2014 11:17:53 GMT
The chart above is the daily time frame on the usdjpy pair and this time I want to show you what it may be the end of an extremely bullish setup for the pair.
The rectangular below the chart shows the pattern I am hunting here and this is one of the most bullish patterns of them all. It is being called a double three running and has it is ALLWAYS being followed by a third wave extended impulsive move.
Whenever you hear the word “running” for a correction then you should immediately associate it with a powerful break to come. The problem with running corrections is that people have the tendency to believe they are rarely happening when in fact, and especially on the currency markets, they are happening quite often.
The theoretical setup calls for a strong move to the upside to be followed by three independent corrective waves: two of them to correct the previous move to the upside, and one that goes in the direction of the previous move (up).
This means price should make a new high in a corrective fashion, and only after that the contracting triangle to appear.
As it can be seen in the chart above, the b-d trend line of the triangle is broken and this should keep the bullish bias well above recent highs in 105 area. A move below 101.70 should invalidate the double three running.
strong>About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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