Today's Candlestick View : 1st August 2008 (Updated with outcome)

First day of Candlesticking. Three Yen pairs give engulfing patterns, which are my highest probability trade setups.

USD/JPY - Engulfing candle given and closed just below the support/resistance line. Short trade confirmed. Aim for the 106.00 region.


The outcome: Closed at breakeven. My trade closed at -4 pips as Oanda has a large spread over the weekend.

CAD/JPY - Double confirmation on this one. First the previous pin bar is confirmed with the candle closing lower than open. Secondly the latest candle is also an engulfing candle. There is a brown support line in here, which if broken could bring the price to the 103.50 region.



The outcome: about +25 pips. Price now could shoot up as has happened before at the brown trend line.


EUR/JPY - Engulfing pattern. Only worry is that it is right at the support line. If broken could head down to 164 region.


The outcome: Almost breakeven too at +6 pips.


I have opened 2 short trades based on the above, CAD/JPY and USD/JPY.

Will update this chart tomorrow with the outcome of the trades.

SL - place stop losses above the last candle's high, by about 10 pips or so.