06/22/2009 GBPJPY Trade

A squeeze box trade opened up yesterday and I just closed the last of it.

Short 1 (200 units) GBPJPY @ 5726
Stop @ 5849 (-123 pips)
Target @ 5603 (+123 pips)

Confidence level: 6/10

As soon as I put the trade on, price moved swiftly away from the box, then stalled.  I was up about 100 pips at one point, so I decided to move the stop loss to 5721 or +5 pips.  The trade then became risk free.

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Price started to move again, so I took profit on 50 units at 5672 for a +54 pip profit. Price continued in my favor so I closed out 100 units at 5595 for a +131 pip profit.

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At that point, I still had 50 units on.  I wanted to let it run for a bit to possibly capure more proft.  It was a risk free trade anyway, so I had nothing to lose.

Price finally showed this twin tower formation so I figured there was a good chance of reversal and closed the final 50 pips at 5565 for +161 pips.  Mission accomplished, I captured 30 more pips with that last lot.

Click above for larger image

Click above for larger image

This was a good trade.  I followed my plan and bagged a good number of pips.  Final count was +120 pips when you average out all the exits.



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