HOLIDAY ANOUNCEMENT

Please note that I will be off the desk till Monday 16th January 2012.

HOLIDAY ANOUNCEMENT

Please note that I will be off the desk till Monday 16th January 2012.

GBP/USD 15 DECEMBER 2011

GBP/USD

No trade setup on Cable yesterday. Price found resistance at the 5520 area as per analysis and reversed. Price then took out the B low and gave us a new AB swing, A 5531, B 5407.

FOR TODAY:

Price bounced up to the 618 of the AB swing yesterday, we can only buy bullish cs formations after price hits the BF786, and sell after bearish cs formations at the 618/786.

SHORT: Will be going short only IF:

We need price up at the 618/786 and a bearish cs formation for a short entry. Trade the 618 for 50-60 pips and the 786 to the BF786.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We need price down at the BF786 and then a bullish cs formation for a long entry. Limit at the 786 since we have a 618 prior. Stop below the low of the cs formation.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 15 DECEMBER 2011

EUR/USD

No trade setup on EUR yesterday, we have a new B down at 2944, with the A up at 3236.

FOR TODAY:

Price is in a narrow range since yesterday afternoon. We need a BF786 and a bullish cs formation for a long trade set up, or a bearish cs formation after price hits the 618/786.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We still don’t have a decent swing high, so a BF786 trade setup will probably not happen during the upcoming session. Will wait and see.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 14 DECEMBER 2011

GBP/USD

Sterling also gave us a bullish cs formation after a test yesterday, but that also failed with price taking out it’s a low, starting the reversal process on this timeframe. We now need the new B low to get taken out to confirm the downtrend in place.

FOR TODAY:

We will be looking for short trade set-ups higher up in the AB swing. This is a big AB swing we have on Sterling, with the A up at 5779.

SHORT: Will be going short only IF:

With the 618/786 being way up at 5653/5709 respectively, we are looking for past support to become future resistance at 5520/30, and the 382 at 5576, if we get a clear bearish cs formation at these levels we will look to go short.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

No clear swing highs in place at present, so probably no BF786 long setups in today’s session.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 14 DECEMBER 2011

EUR/USD

Price gave us a BF786 and a bullish cs formation yesterday, the trade lost 48 pips. Price then went on to take out the B low giving us a new AB downswing.

FOR TODAY:

We now have a downtrend in place, we should only sell rallies at the 618/786 after bearish cs formations. The new A is up at 326, with the B down at 3008.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We don’t have a swing high, so we will not have a BF786 set up in today's session.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 13 DECEMBER 2011

GBP/USD

Sterling fell to the A low but never broke the support, instead it bounced off the support giving us a bullish cs formation at the A low, this should be good for a rally to 5720.

FOR TODAY:

Today will be a DA ALOW trading day where we will be looking to buy dips to 5720. These will all be ST’s.

Only if price takes out the A low at 5525 then we will be reversing on this timeframe.

SHORT: Will be going short only IF:

We get to the 5734/69 highs and then get a bearish cs formation,  stop above the cs formation, max 1.5% risk, limit will be down at the A low at 5525.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get dips and bullish cs formations, buy these until price reaches 5720.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 13 DECEMBER 2011

EUR/USD

Eur gave us the bullish cs formation we were looking for yesterday, but it failed and we lost 30 pips, price went on to take out the A lows doing a reversal on the 1h time frame.

FOR TODAY:

We now have a new B low down at 3160, we can only buy on a BF786 after a bullish cs formation, or sell up at the 618/786 of this huge AB swing.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a test of the BF786 and thereafter we get a bullish cs formation. Trade this for 100 pips since it’s a shallow bounce. Stops below the cs formation.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 12 DECEMBER 2011

GBP/USD

Price rallied on Friday and gave us the bearish cs formation we were looking for, but once again the stop was too big to take the trade.

FOR TODAY:

Sterling seems stuck in a range roughly between the 86 of the upswing and the BF786, approx a 200 pip range. We need a break of either to give us clearer direction.

Today we look for a test of the bearish cs formation and expect price to continue the fall, else if we get a bullish cs formation we will trade long, this will tell us that support is holding.

Only if price takes out the A low at 5525 then we will be reversing on this time frame.

SHORT: Will be going short only IF:

We get to the 5734/69 highs and then get a bearish cs formation,  stop above the cs formation, max 1.5% risk, limit will be down at the A low at 5525.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get a bullish cs formation inside Fridays lows, or lower down while inside the A low, this will qualify as a ST to the BF786, stop below the low, max 1.5% risk.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 12 DECEMBER 2011

EUR/USD

Eur gave us the bullish cs formation we were looking for on Friday, but this was a ST to the BF786, price fell back to our entry and we were stopped out at zero.

FOR TODAY:

Today will be a DA86 trading day where we again be looking to buy dips towards the BF786.

Else if price falls and takes out the A low down at 3258 then we will be reversing on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short either inside 3433/3458 highs, or higher up at the BF786 at 3490.  The limit for this entry will be at the A low since we had an 86 prior bounce. Stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a clear dip and a bullish cs formation, either at or inside Friday's lows, or lower down inside the A low. Trade this to the BF786. Stops below the low of the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 9 DECEMBER 2011

GBP/USD

Price gave us the bearish cs formation after hitting the BF786 yesterday, but that trade was stopped out. We then had another bearish cs formation but the stop was too big for the trade, we have fallen since.

FOR TODAY:

Today we look for a test of the bearish cs formation and expect price to continue the fall.

Only if price takes out the A low at 5525 then we will be reversing on this time frame.

SHORT: Will be going short only IF:

We are looking for a test of the bearish cs formation yesterday, trade a bearish cs formation after a rally, stop above the cs formation, max 1.5% risk, limit can be down at the A low at 5525.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We can trade a long trade setup if price falls to the 86 at 5561 and gives us a bullish cs formation at that level, this will qualify as a DD entry and will attract a limit at the BF786.

For position traders – The long trade was exited as per post yesterday with 65 pips profit.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 9 DECEMBER 2011

EUR/USD

Price fell and negated the long trade we were in and we lost 1.5% on that trade. Price then went on to find support at the 86fib retracement.

FOR TODAY:

Today will be a DA86 trading day where we look to buy dips towards the BF786.

Else if price falls and takes out the A low down at 3258 then we will be reversing on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short either inside yesterday’s highs, or higher up at the BF786 at 3491.  The limit for this entry will be at the A low since we had an 86 prior bounce. Stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a clear bullish cs formation at or inside yesterdays lows, or lower down inside the A low. Trade this to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The trade was stopped out at zero.

If we don’t get the cs formations we are looking for then we don’t trade.

11H25 GMT UPDATE FOR GBP/USD 8 DECEMBER 2011

GBP/USD
For Position Traders - Price has hit the BF786 and has given us a bearish cs formation as seen above. According to the system this is a sign that we might be in for a fall down to 5538 over coming sessions since we have had an 86 prior bounce.
Traders might want to exit the long trade with some 65 pips depending on fill.


If the bearish cs fails and price continues up and violates the B high, then we will have a new AB swing and we will wait for a retracement on that swing for a buy entry.

GBP/USD 8 DECEMBER 2011

GBP/USD

Price gave us the dip and the bullish cs formation we were looking for yesterday and rallied to the limit-10 pips inside the BF786 as per analysis for a profit of 87 pips.

FOR TODAY:

We are close to the BF786 which will be sell territory IF we get a bearish cs formation. Else we expect price to rally and take out the B high at 5779 giving us a new AB swing.

Only if price takes out the A low then we will be reversing on this time frame.

SHORT: Will be going short only IF:

We need price to hit the BF786 at 5732 and thereafter give us a bearish cs formation. The cs formation can be anywhere inside the B high .This will be a ST and will have a limit down at the A low since we had an 86 prior bounce, stops above the cs formation, max 1.5% risk.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We have already reached the limit at 5722, but if we get a clear dip and a bullish cs formation we can trade long since price will probably then rally to violate the B high.

For position traders – The long trade was re-established on yesterdays dip  and we will see if we get a break of the B high to open the topside for rallies higher up.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 8 DECEMBER 2011

EUR/USD

Price gave us the bullish cs formation inside the previous day’s lows as per our daily analysis. We went long and we are still in that trade, with limits set up at the BF786 -10 pips inside.

FOR TODAY:

We will look for price to continue up today and we will be buying dips after bullish cs formations until price reaches the BF786, we can only add to current position once we are 50+ pips in the money on the current entry.

Only if price falls and takes out the A low down at 3258 then we will be reversing on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short either inside the 3485 highs, or higher up at the BF786 at 3501.  The limit for this entry will be at the 786 since we had a 618 prior bounce. Stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a clear bullish cs formation at or inside yesterdays lows, or down at the 786, or inside the A low. Trade this to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – For Position traders – We added to the long entry yesterday with the dip and the bullish cs formation. Limits for both trades are still 10 pips inside the daily 618 at 3841. Stop for first trade is at zero. We will exit on a reversal on this time frame, or on a BF786 after a 786/86 prior bounce.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 7 DECEMBER 2011

GBP/USD

We had a DA786 trading day yesterday but price fell and took out the stop and then found support at the 86 with a morning star formation.

FOR TODAY:

Today we will be  looking for long trade entries, buying dips until price reaches the BF786. We are looking for yesterdays support low to be holding.

If price takes out the A low then we will be reversing on this time frame.

SHORT: Will be going short only IF:

With the 86 fib bounce of yesterday, we can only sell up at the BF786 at 5732. This will have a limit down at the A low since we had an 86 prior bounce, stops above the cs formation, max 1.5% risk.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We are looking to buy dips after bullish cs formations until price hits the BF786. Stops below the low of yesterday’s cs formation, max 1.5% risk. This will be a ST entry so we don’t expect price to necessarily rally to the limit in one session.

For position traders – we were stopped out (at zero) of the long entry we were in. Use the dip and bullish cs formation – if we get one, to re-establish the long position.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 7 DECEMBER 2011

EUR/USD

No trade setup on Eur yesterday, price did give us a bullish cs formation, but it never bounced off the 786. We have rallied since.

FOR TODAY:

We will look for price to continue up today and we will be buying dips after bullish cs formations until price reaches the BF786.

Else if price falls and takes out the A low down at 3258 then we will be reversing on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short either inside the 3485 highs, or higher up at the BF786 AT 3501.  The limit for this entry will be at the 786 since we had a 618 prior bounce. Stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a clear bullish cs formation at or inside yesterdays lows, or down at the 786, or inside the A low. Trade this to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open. We can still add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618. Stop for entry is at zero already.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 6 DECEMBER 2011

GBP/USD

No entry on Cable yesterday, we were looking for a BF786, price came 18 pips shy of the BF786 and fell.

FOR TODAY:

Today we will be looking for a rally and a bearish cs formation for a short entry. The bearish cs formation inside yesterdays high will be confirmation that yesterdays high will be holding.

Long entries are still considered down at the 786 at 5579 after clear bullish cs formations. This will be considered a DD entry, good for a rally to the BF786.

If price takes out the A low then we will be reversing on this timeframe.

SHORT: Will be going short only IF:

We need a rally and a bearish cs formation for a short entry. Place stop above the cs formation, max 1.5% risk, and the limit will be 80-100 pips.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get another bullish cs formation at the 786, or lower down while still inside the A low. This will be a ST with limits for this entry at the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 is still open, but doesn’t look good at present. The failure yesterday doesn’t bid well for our long entry and is likely the sign that price is heading to the A low over coming sessions. Stops are at zero, so no risk on this entry.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 6 DECEMBER 2011

EUR/USD

Price rallied and gave us the bearish cs formation we were looking for, but after our trading session. Price continued to drop the 80-100 pips. We are now back at the 618 of ther AB swing.

FOR TODAY:

Price rallied but didn’t get to the BF786 which would have been ideal for our strategy. We are now back at the 618 which is a buy territory. Our strategy is to buy at the 618/786 of the AB swing, If we do get a clear bullish cs formation at the current level which is the 618 then it will be considered a DD entry, else lower down at the 786 would be the next support to buy into after bullish cs formations.

But after the rally yesterday and the fall overnight we are reluctant to trade a long entry at current levels, since failure last night tells us that we might be heading back down.  If we get a clear bullish cs formation, try to place stop at cost asap, sell a bearish cs formation.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short entry today.  The limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk. If price rallies to the BF786 and then gives us a bearish cs formation, the limit will be at the 786 since we would have had a 618 prior bounce.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a clear bullish cs formation at the 618, this will be a DD entry – good for 100 pips, it shows that the fib is holding, or lower down at the 786. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open but not looking to convincing right now, yesterdays failure tells us that we are likely heading back down to the A low of this swing. We can still add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618. Stop for entry is at zero already. 

The bearish cs formation after the rally yesterday was most likely the sign that we heading deeper into the AB swing, if not reversing on this timeframe.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 5 DECEMBER 2011

GBP/USD

Sterling gave us the bearish cs formation we were looking for and price fell to the 618 limit, even further to the 786.

FOR TODAY:

Price bounced off the 786 on Friday and opened higher during the Asian session. We will look to see if the 786 support will hold or if the bears are targeting the A low down at 5525.

If price takes out the A low then we will be reversing on this timeframe.

SHORT: Will be going short only IF:

Since we have already reached the 786, we can now only sell up at the BF786 up at 5735. This short entry will have a limit at the A low since we would have had a 786 prior.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get another bullish cs formation at the 786, or lower down while still inside the A low. This will be a ST with limits for this entry at the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 would still be open, add to this on entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881. 

Stop at zero, so no risk on this entry.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 5 DECEMBER 2011

EUR/USD

Price gave us the BF786 entry we were looking for on Friday and fell the 100 pips. Price then bounced off the 618 of the AB swing.

FOR TODAY:

With the BF786 entry on Friday, today should be a DABF786 trading day where we expect price to continue down. For a short entry we would need a rally and a bearish cs formation. Be weary of support at the 618 at 3368 where we already bounced off.

Else we will be looking for long entries if we get another bullish cs formation at the 618, else lower down at 3320-786.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short entry today.  The limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk. 

If price rallies to the BF786 and then gives us a bearish cs formation, the limit will be at the 786 since we would have had a 618 prior bounce.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get another bullish cs formation at the 618, showing that the fib is holding, or lower down at the 786. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open, we can add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618. 

Stop for entry is at zero already.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 2 DECEMBER 2011

PLEASE NOTE - TODAY IS NFP DAY !!! BROKERS MIGHT NOT HONOUR STOPS, SO MANAGE TRADES CAREFULLY IF YOU GOING TO ENTER TRADES TODAY !

GBP/USD

No trade setup on Sterling yesterday, price did rally to the BF786 and did give us a bearish cs formation , but after the session ended.

FOR TODAY:

Today we have a DABF786 trading day where we expect price to fall down to the 618 -5622 since our prior bounce yesterday was a 50. We will look to sell rallies after bearish cs formations.

Else if price rallies and takes out the B high at 5779, then we will be setting up for a new AB swing on this time frame.

SHORT: Will be going short only IF:

We would ideally like a small rally and a bearish sc formation for a short trade entry. Limit for this entry will be at the 618 -10 pips inside, since our prior BF786 bounce was a 50. Stop above the high of the cs formation, max 1.5% risk.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get down to the 618/786 of this AB swing and price gives us a bullish cs formation. Trade the 618 for 80-100 pips and the 786 will be a ST to the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 would still be open, add to this on entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 2 DECEMBER 2011

EUR/USD

No trade setup on EUR yesterday, price rallied to the BF786 but only gave us a bearish cs formation after the session ended. We are now back at the same price we were yesterday this time.

FOR TODAY:

Today we have a DABF786 trading day where we expect price to continue down, since yesterdays bounce was a shallow one we don’t expect too much of a fall today, although NFP can really move price.

Else if price rallies and takes out the B high at 3532 then we will have a new AB swing underway.

SHORT: WILL ONLY BE GOING SHORT IF:

We ideally would like a small rally and then a bearish cs formation for a short entry today.The limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We are looking for a retracement to the 618 or the 786 and then a bullish cs formation for a long trade setup. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open, we can add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618.

If we don’t get the cs formations we are looking for then we don’t trade.

GBP/USD 1 DECEMBER 2011

GBP/USD

Sterling gave us the bullish entry at the 618 and price rallied 100 pips. Price went on to take out the B high and give us a new AB swing.

FOR TODAY:

We need a retracement to the 618/786 and a bullish cs formation for a long entry, or we need price to rally to the BF786, currently at 5756 and then a bearish cs formation for a short trade entry.

SHORT: Will be going short only IF:

Price gets up to the BF786 at 5756 and  gives us a bearish cs formation, trade this for 80-100 pips since it’s a shallow prior bounce. Stops above the cs formation.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get down to the 618/786 of this AB swing and price gives us a bullish cs formation. Trade the 618 for 80-100 pips and the 786 will be a ST to the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 yesterday would still be open, add to this on the entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881. Exit on a reversal on this time frame.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 1 DECEMBER 2011

EUR/USD

Price gave us the bullish entry we were looking for and rallied to the BF786 to the limit for a 77 pip profit. For the position traders that trade is still open. Price went on to take out the B high, giving us a new AB swing in play.

FOR TODAY:

We are now looking for a retracement to the 618/786 of this AB swing for a long trade setup, after a bullish cs formation. Price has bounced off the 382 thus far.

Else we can only sell up at the BF786 after a bearish cs formation, currently at 3508.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally to the BF786 up at 3508 and then we need a bearish cs formation confirming the short trade entry. We have a prior bounce less than a 382 so the limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for at the fibs then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We are looking for a retracement to the 618 or the 786 and then a bullish cs formation for a long trade setup. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – Yesterdays trade is still open, we can add to this position if we get the entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618.

If we don’t get the cs formations we are looking for at the fibs then we don’t trade.

GBP/USD 30 NOVEMBER 2011

GBP/USD

No trade setup on GBP yesterday, price rallied and took out the B high confirming the reversal on the 1h chart.

FOR TODAY:

Price has retraced to the 382 of the current AB swing and has gone sideways since. We are looking for a bounce off the 618/786 for a long trade setup, and a bounce off the BF786 for a short trade setup.

SHORT: Will be going short only IF:

Price gets up to the BF786 at 5639 and  gives us a bearish cs formation, trade this for 80-100 pips since it’s a shallow prior bounce. Stops above the cs formation.

If we don’t get the setup we are looking for then we don’t trade.

LONG: Will be going long today only IF:

We get down to the 618/786 of this AB swing and price gives us a bullish cs formation. Trade the 618 for 80-100 pips and the 786 will be a ST to the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – We still looking for an entry to PT this up to the bigger 618 at 5881 on the daily, depending on entry it could be some 200 pips away. Remember if you do PT this it would be a limit that could be days away.

If we don’t get the setup we are looking for then we don’t trade.

EUR/USD 30 NOVEMBER 2011

EUR/USD

The bearish entry on Monday lost 1.5% since price rallied yesterday and took out the A high doing the reversal on the 1h chart. We now need  a break of the new B high to confirm the reversal.

FOR TODAY:

Price bounced off the 618 late in yesterday’s session but hasn’t gone anywhere since. We are looking for a test of the 618/786 today and a bullish cs formation for a long trade setup.

Else we can only sell up at the BF786 after a bearish cs formation.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally to the BF786 up at 3409 and then we need a bearish cs formation confirming the short trade entry. At the time of writing the prior bounce is a 618, so the limit for this entry will be the 786 lower down, stop above the cs formation, max 1.5% risk.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We are looking for a test of the 618 or the 786 and then a bullish cs formation for a long trade setup. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders - We have the new AB swing and if we get a long entry setup, we could look at placing the limit for this first trade at a fib on the daily chart and allowing price to run for a couple of days, we have a 618 up at 3851, this could be a decent target for a retracement over coming sessions.

If we don’t get the cs formations we are looking for then we don’t trade.