EURJPY: 8 Hour Chart

In this 8 hour chart, the progression of the recent downtrend is revealed. Also, I illustrate the trade I took and gave to my members where we took in +1530 pips. In describing my trade, I'll go over what I am seeing here.

First, in that long down trend, a crab formed that was filled. Also, within the long trading channel (blue) there was a descending ED (red). When that ED completed it's E leg, I expected an overthrow as is common with ED's. But to ensure that prices weren't headed MUCH lower, I needed to wait until there was bullish PA and that prices were at a low and not going lower. So I waited. And prices declined towards the 2.618 extension of the crab into the crab's PRZ. 2.618 is a derivative of the Golden Ratio and I though should hold. Sure enough, prices made a new low just past it and just as quickly popped right back up as I was expecting. The 2.618 level held. This was proof enough to me that prices were not headed much lower but instead was gathering steam for a nice move up.

That's when I took a BUY@128.090. As per my trading method, I opened 4 full lots.Stops went below the lows so that if I was wrong, prices would need to break that low. Now, all there was to do was just wait. 3 days later, BAM!. Prices spiked up and easily reached the TP1 of that crab! And just like that, I had +800 pips in my pocket when I closed 2 of those 4 contracts at 132.090. As per my method, I let the other 2 contracts run to see it prices would continue higher and I could get even more pips. But I set a trailing stop of 40 pips just in case prices weren't quite ready to break out of that ED just yet. I felt that upper TL of the ED would not break so easy. A couple of hours later, my trailing stop was hit as prices declined and did indeed shy away from that upper TL. So my remaining 2 contracts were also closed out at 131.690. Good for another +730 pips. Total pip haul: +1530 pips. And if you were counting, with 4 FULL LOTS, that was worth over $15K in 3 days!

So what next? Well, this should be just the start of a much larger up trend in a wave (c) of B. This up move from the newly established lows being just part of the wave 1 of the 5-wave wave (c) I am expecting. And this wave 1 is NOT done. Just think. I made over +1500 pips just with this "small" move. How many pips do you think I will make trading this move up?

This whole long down trend also has setup a POTENTIAL Cypher pattern. When prices get past and break out of this long trading channel, that will be it's next target.