[L.C.]

this is another trade I took today Thursday August 7 2008.

As you can see this is a 30 minute chart of the euro/JPY.

This is the same trade technique I have been explaining in this thread. I wait for a breakout of consolidation or support or resistance then I wait for a pullback. The pullback usually moves to an old support or resistance level but it does not always have to hit that level on the number. I then look for either the morning star pattern or evening star pattern depending on which direction I’m trading in.

My stop is placed just above or below the star pattern.

This trade developed a lot later in the day than I anticipated. Today was a quite unusual day with the BOE releasing their interest rate decision the ECB as well.

it was Trichet comments that really turned price around on the euro/USD.
This helped set up my trade on the euro/JPY I entered the trade which paid within the hour to the first target the second target over a couple of hours later.
As I mentioned this is usually later than my normal trading hours but when the pattern is there usually works no matter what time of day. Just be careful of overnight consolidation ranges.

Tomorrow I will discuss the importance of identifying the overnight consolidation range what is a typical range for each p. If you are not careful incorrectly identified the overnight consolidation range you can get caught in a false move or head fake.

These trades have very small stop loss levels in almost every case will net equal to the size of the stop or more.

If you have any questions or comments please post them here I would like to continue this thread with those who are interested. As I mentioned a use this trade almost every day on every currency p I trade.
Thanks for reading
LC
www.udaytrading.com