GBPJPY The Journey to the Targets

Note: Price has dropped like a “Stream Lined Safe” as Pipfisher says. Lets look at what has happened over the last week is represented in the next slide. With the low under the lower median line parallel (LMLP or lower median line) a dotted trend line was place which is called a slot line. When price overextends over the LMLP we need a way to catch price. As one might see I was stopped out of the long. A new pitchfork was placed. Moving along one sees how price re-visits the slot line and even though the line was tested stop management was not existent, even off the LMLP (yellow fork.)

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Evening While the forks “up” are highlighted, the continuing lows generated a down fork (in the direction of the trend.) As price began to test the upper median line parallel (UMLP) the short trade was Note the stop placement. In this case the profit could not be trailed with the stop as #1 price fell quickly to the target (the median line) and #2 price structure did not warrant a trailing stop. The target price was place just this side of the median line. Note the slope of the white pitchfork versus the other pitchforks.

Evening

AM The pair broke to the upside into a consolidation pattern marked in the yellow rectangle. The evening was spent observing the “price in the box” instead of jack, LOL! Price gives its hand away – see how price hits the same level in the price in the box? Price to the upside does little to test that level and spawns higher highs. Consequently suspecting a further move to the upside I traded price up on the 3 rd and 4 th touch of the bottom of the box. Stochastic theory also shows the impending long move. Note: The white lines are Support/Resistance (s/r) levels. Stop management is superior - under the box. Entries were taken when price moved past the previous close. Price moved to the median line channel upward, broke and continued to rise. The test of the median line was missed yet the original trade continued until the stop was move - to quickly - to the s/r where the trade was terminated by that stop.

AM

PM/ AM The test at the top of consolidation and UMLP and entry. Price winds it's way to the 25% median line then stammers at the Daily, 240 and 60 min Support. Taking that support out we hit the median line. The final drop hits my weekly target at and my limit at Price never did catch my stop as I moved it to just above the top of the magenta moving average. A limit was set at the support level ( (.52)) as this had confluence with the 1 st target from my weekly chart of (70) which was at the bottom of the “price in the box.” The Drop starts and now lets see if we make it to the averaged target at This total should be approximately a 600 pip run when said and done.

PM/ AM

Great Asian Action The drop left price cycling in a gentle sloping downward channel. Watching price bounce the MA. I grab price at just under the MA of the 377 T chart. I could afford this atop at I rejected the trade off the 1444t due to unacceptable stop management. Price essentially went trough 2 support areas. The stop was moved to the first support area when the third bar took out the previous low. A my price charts went into hibernation over night price moved up then down. My next entry was Friday AM. At then end of market my stop has been move to above the support level. The added parallel line are called reaction lines to catch price as it moves out of the pitch fork.

Asian Drop, Morning Dew

The Little stuff One good charting rule is to always look to your left. Using a 1444 t chart the signals are very good in the currency market. When the signals blur or stop management is unacceptable I move to a smaller chart setup and that is the 377 T. Condensing price on the chart gives that look to the left in the following slide. The following chart has done just that. It shows how I keyed in on the entries, found a stop I could live with and then entered. As the pair continued to drop on Friday I simply managed the trade by moving the stop to above that last support level at

The Little Stuff

Note: Suspecting a pull back with a new weekly bar on Sunday I will plan on being stopped out. If not I will be pleasantly surprised. Now lets step back and look what has happened on a bigger scale. The following 1444 t chart has listed the original targets. As you can see the pitch fork managed the trade marvelously. Target 1 and Target 2 have been hit. The median line was surpassed (the retested.) Price dropped through the LMLP and into reaction lines that have harmony and are synched with the original pitch fork lines. The targets were talked about in the original power point and taken off the weekly chart. That weekly chart will follow after the next chart.

The End of the Trail

“Sonar” The weekly chart was setup some time ago and will be used to “time” travel as price shows it hand. I do hope this study has been of benefit in showing you where the GBPJPY was going to “land.” The pitch fork theory is simply what Tim Morge does every day as applied from the original A Andrews studies.

That Weekly Chart

Even Closer…”Sonar”