GBP/USD 30SEPTEMBER 2011

GBP/USD

Price gave us a bearish cs formation, but the trade was stopped out for 50 pips loss. We did get another bearish cs formation but the stop was too big.

We are still in the AB swing, price bounced off the 86 again yesterday.  Today we have a DA86 trading day where we are looking for price to continue down towards the BF786. We are looking to sell into rallies after bearish cs formations today.

Long entries will only be considered once price falls down to the BF786, accompanied by bullish cs formations.

SHORT: Will be going short only IF:

We have a DA86 trading day, we are looking to sell rallies after bearish cs formations with limits set at the BF786. Stops above the cs formation - max 50 pips.

LONG: Will be going long today only IF:

Price falls to the BF786 and then gives us a bullish cs formation. Stops below the cs formation. This will be a ST with limits set at the A high since we have an 86 prior.

EUR/USD 30SEPTEMBER 2011

EUR/USD

No trade setup on EUR yesterday as there were no dips to buy into.

Today we have the same scenario, we are looking for dips to buy towards the 618 at 3716.

Else if price continues down then we will look for a bullish cs formation at the BF786.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then need to wait for a bearish cs formation as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We have another DABF786 trading day, so we are looking for dips to buy into with our stops below the cs formation.

Else if price continues down, we will look for a bullish cs formation at the BF786. This would be a ST to the 618 up at 3716, since we have 50 prior -  stops below the cs formation, max 50 pips.

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

GBP/USD 29 SEPTEMBER 2011

GBP/USD

Sterling gave us the test of the previous days highs and the bearish cs we were looking for, price has fallen 95 pips since then and retraced back to our entry point, this was a ST, so our stops were at zero since we fell 80+ pips, this trade would have been stopped out at zero.

We are still in the AB swing, price fell a bit yesterday after testing the previous days high, if we get another test of the cs formation and then a bearish cs afterwards it will be a sell signal on GBP again today.

Long entries will only be considered once price falls down to the BF786, accompanied by bullish cs formations.

SHORT: Will be going short only IF:

Price found resistance at the 86 of the AB swing, if we get another  test of the high and a clear bearish cs formation we will trade it as a ST to the BF786.

LONG: Will be going long today only IF:

Price falls to the BF786 and then gives us a bullish cs formation. Stops below the cs formation. This will be a ST with limits set at the A high since we have an 86 prior.

EUR/USD 29 SEPTEMBER 2011

EUR/USD

Price gave us the bullish engulfing candle we were looking for yesterday, entry at 07h00 GMT.  Could have limited out at 100 pips profit, price came 1 pip shy of the 3690 target, as per my charts.

Today we have another DABF786 trading day where we are looking for price to extend its rally towards 3700/3716. We will look to enter on dips towards 3700/3716.

(Since our ranges are wider these days we could consider widening our limits to 80 pips per trade.)

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then need a clear bearish cs formation as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We have another DABF786 trading day, so we are looking for dips to buy into with our stops below the cs formation.

Else if price continues down, we will look for a bullish cs formation at the BF786. This would be a ST to the 618 up at 3716, since we have 50 prior -  stops below the cs formation, max 50 pips.

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

GBP/USD 28 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP yesterday.

We are still in the AB swing, price bounced off the 86 yesterday, if we get a test of the cs formation and then a bearish cs afterwards it will be a sell signal on GBP.

Long entries will only be considered once price falls down to the BF786, accompanied by bullish cs formations.

SHORT: Will be going short only IF:

Price found resistance at the 86 of the AB swing, if we get a test of yesterdays high and a clear bearish cs formation we will trade it as a ST to the BF786.

LONG: Will be going long today only IF:

Price falls to the BF786 and then gives us a bullish cs formation. Stops below the cs formation. This will be a ST with limits set at the A high since we have an 86 prior.

EUR/USD 28 SEPTEMBER 2011

EUR/USD

Price gave us the dip and the bullish engulfing candle we were looking for yesterday at 10h00 GMT. Entered and was limited out at 100 pips profit.

Today we have another DABF786 trading day where we are looking for price to extend its rally towards 3700. We will look to enter on dips towards 3700.

(Since our ranges are wider these days we could consider widening our limits to 80 pips per trade.)

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then bearish cs formations as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We have another DABF786 trading day, so we are looking for dips to buy into with our stops below the cs formation. Price is already falling, so any clear bullish cs formation here would serve as a long entry.

Else if price continues down, we will look for a bullish cs formation at the BF786. This would be a ST to the 618 up at 3716, since we have 50 prior -  stops below the cs formation, max 50 pips.

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

GBP/USD 27 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP yesterday.

We are still in the AB swing, price is currently at the 618, so we are in sell territory if we get a clear bearish cs formation.

Long entries will only be considered once price falls down to the BF786, accompanied by bullish cs formations.

SHORT: Will be going short only IF:

We are at the 618 of the AB swing, if we get a clear bearish cs formation we will trade it for 80 pips. If we rally higher to the 786 we will look for a bearish cs formation after we hit the 786. Limits here will be at the BF786.

LONG: Will be going long today only IF:

Price falls to the BF786 and then gives us a bullish cs formation. Stops below the cs formation. Limits set at the 786 since we have a 618 prior – as at 05h52 GMT.

EUR/USD 27 SEPTEMBER 2011

EUR/USD

We had a hammer cs formation at 06h00 GMT yesterday, price rallied the 80 pips. I missed the opportunity.

Today we have a DABF786 trading day where we are looking for price to extend its rally towards 3700. We will look to enter on dips towards 3700.

(Since our ranges are wider these days we could consider widening our limits to 80 pips per trade.)

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then wait for bearish cs formations as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We have a DABF786 trading day, so we are looking for dips to buy into with our stops below the cs formation, if we don’t get a dip and price just rallies from current levels then we don’t trade. We will be patient and wait for the dip.

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

GBP/USD 26 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP on Friday .

We have a new B low in place and it’s a decent swing low. We have our A up at 5746 and our B down at 5327, also a rather big swing for the 1h chart. We once again can only sell once price rallies up to the 618/786 fib areas and we then the cs formations as confirmation.

Long entries will only be considered once price falls down to the BF786, accompanied by bullish cs formations.

SHORT: Will be going short only IF:

Price rallies up to the 618/786 and then gives us a bearish cs formation, trade the 618 for 80 pips and the 786 will be a ST to the BF786.

LONG: Will be going long today only IF:

Price falls to the BF786 and then gives us a bullish cs formation we will trade it for 80 pips since we have a shallow bounce in place, stop below the cs formation max 50 pips.

EUR/USD 26 SEPTEMBER 2011

EUR/USD

We had a BF786 and a bullish cs formation on EUR, but stop was too big to take the trade on Friday, so no trade.

We are still in the bearish AB swing with price testing the lows now at the B low. Will wait to see if we break it on a sustained basis and go on to create a new AB swing, or if we find support here.

Else if price rallies from current levels then we look to sell rallies after bearish cs formations once prices hit our 618/786 fib levels higher up.

(Since our ranges are wider these days we could consider widening our limits to 80 pips per trade.)

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then look for bearish cs formations as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We are at BF territory at present, if we get a clear bullish cs formation at current levels then it will be a long entry. Stop will be placed below the low – 50 pips max and limits will be  80 pips since it’s a shallow bounce.

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

GBP/USD 23 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP yesterday.

We have a new B low in place and it’s a decent swing low. We have our A up at 5746 and our B down at 5327, also a rather big swing for the 1h chart. We once again can only sell once price rallies up to the 618/786 fib areas and we then wait for the cs formations as confirmation.

Long entries will only be considered once price falls down to the BF786, accompanied by bullish cs formations.

SHORT: Will be going short only IF:

Price rallies up to the 618/786 and then gives us a bearish cs formation, trade the 618 for 80 pips and the 786 will be a ST to the BF786.

LONG: Will be going long today only IF:

Yesterday we were looking for a swing high before we could call a BF786, today if we fall from current levels we will have a swing high in place. Therefore if price falls to the BF786 and then gives us a bullish cs formation we will trade it for 80 pips since we have a shallow bounce in place.

EUR/USD 23 SEPTEMBER 2011

EUR/USD

We lost 33 pips yesterday with the BF that failed.

We seem to have a lower top in place at 3936, with our B down at 3384, quite a big AB swing in play here. The trend is bearish although we cannot rule out a retracement before we continue down. We will look to buy bullish cs formations if we hit the BF786.

Else if price rallies from current levels then we look to sell rallies after bearish cs formations once prices hit our 618/786 fib levels higher up.

(Since our ranges are wider these days we could consider widening our limits to 80 pips per trade.)

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up at the 618/786 of this AB swing before we can consider going short. We then need bearish cs formations as confirmation of our short entry. Trade the stop above the cs formation, 50 pips max, and limits for a 618 will be 80 pips and the BF786 will be a ST to the BF786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need price to continue down to our BF786 and then we are looking for a bullish cs formation after we hit the BF786. This will attract a limit of 80 pips, since it’s a shallow bounce, with a max stop below the cs formation of 50pips.

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

GBP/USD 22 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP yesterday.

Price took out support giving us a new B, lets see if this will be the swing low we are looking for. We can only sell up at the 618/786, or buy BF786 after cs formations. We don’t have a BF setup as yet.

SHORT: Will be going short only IF:

Price rallies up to the 618/786 and then gives us a bearish cs formation, trade the 618 for 60 pips and the 786 will be a ST to the BF786.

LONG: Will be going long today only IF:

We need a swing high then a test of the BF786, we don’t have that as yet, so no long trade setups on Sterling at present. If it changes during the trading day I will post it.

EUR/USD 22 SEPTEMBER 2011

EUR/USD

Price gave us our dip and a bullish cs formation yesterday afternoon, and rallied just more than 100 pips. Stops were then placed at zero according to our rules. We got stopped out with no loss when price fell after the FOMC announcement.

We are still in the downtrend on the 1H chart, price has taken out yesterday’s lows but has just now given us a bullish cs formation at the B low again. We will take this trade setup as it is according to our strategy. Place stop below the cs formation, limits are set at 3780. This will also be a ST since we had a failure at the A high and now we are at the BF, but notice that the limit is not at the 3920, but the more recent high of last night.

If price drops and stops us out then we are looking for it to take out the B low and continue the downtrend. We then have to wait for a new B to form, then draw fibs and start all over again.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price higher up around the 3693/3738 or even last night’s high and then a bearish cs formation.  Else if we rally and take out those levels then 3920 will be the next level to watch for short entries.

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:

Price just gave us a bullish cs formation  which qualifies for a BF long trade setup. This will be a ST with limits set at inside yesterday’s highs -3780. It should be set at 3920 since we have a big swing, but the fall from yesterday’s highs are so dramatic that I will place the limit order inside that high. Stops below the low, its inside 50 pips.

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

GBP/USD 21 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP yesterday, price came shy of the BF786 but never hit it.

We are still in the bearish AB swing. Price rallied yesterday without testing the BF786 so we never had an entry point. We are looking to sell up at the 618/786 after bearish cs formations, or buy after hitting the BF786 and after a bullish cs formation. So far price has come shy of the 50 fib level.

SHORT: Will be going short only IF:

Price rallies up to the 618/786 and then gives us a bearish cs formation, trade the 618 for 60 pips and the 786 will be a ST to the BF786.

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this as a ST to the 618 since as at 05h50GMT we have a 50 bounce. Stops below the low – max 50 pips stop.

EUR/USD 21 SEPTEMBER 2011

EUR/USD

We are still in the BF786 long trade setup, entered in at 3625. Stops are at zero, limits set at 3920.

We are still in the downtrend on the 1H chart, with price having tested the BF786 again yesterday, and then rallied.  We are looking for a DABF786 trading day today where we are expecting price to rally towards the 3936 price. We will look to buy dips until 3936.

Else if we fall and take out yesterday’s lows, we will still be looking for a bullish cs inside the B low.

Only a fall beyond 3494 will negate this view.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at either of these levels for a short entry:

1.     Around 3900/3936, if we get a bearish cs formation here its telling us that the highs are holding.

2.     Else shorts are only considered once price takes out 3934 and opens up the downside, we then have to wait for a B to form and a retracement back to the 618/786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

Since we have a DABF786 trading day today, we are looking for price to extend towards the 3936 price area, we will look to buy dips towards that price. Stops below the bullish cs formation, max 50 pips and limits set at 3920.

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

GBP/USD 20 SEPTEMBER 2011

GBP/USD

No Trade setup on GBP yesterday.

Price gave us a new A-5867, B-5632  swing yesterday, we are looking to sell up at the 618/786 fib areas after bearish cs formations, or buy after price hits the BF786 and after a bullish cs formation.

SHORT: Will be going short only IF:

Price rallies up to the 618/786 and then gives us a bearish cs formation at either of these levels, trade the 618 for 60 pips profit and the 786 will be a ST to the BF786.

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this for 60 pips profit since it’s a shallow bounce. Stops below the low – max 50 pips stop.

If we don't get the cs formations at the fibs, then we don't enter the trade.

EUR/USD 20 SEPTEMBER 2011

EUR/USD

Price hit the BF786 and then gave us the bullish cs formation we were waiting for yesterday.

We are still in the downtrend on the 1H chart, with price having retraced to the BF786 yesterday. We are back at that price now. We are looking for a DABF786 trading day today where we are expecting price to rally off the lows towards the 3936 price. We will look to buy dips until 3936.

Else if we fall and take out yesterday’s lows, we still looking for a bullish cs inside the B low.

Only a fall beyond 3494 will negate this view.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at either of these levels for a short entry:

1.     At the overnight highs – 3700/3715, if we get a bearish cs formation here we will short.

2.     Around 3900/3936, if we get a bearish cs formation here its telling us that the highs are holding as well.

3.     Else short are only considered once price takes out 3934 and opens up the downside, we then have to wait for a B to form and a retracement back to the 618/786.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

Since we have a DABF786 trading day today, we are looking for price to extend towards the 3936 price area, we will look to buy dips towards that price. Stops below the bullish cs formation, max 50 pips and limits set at 3926.

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

GBP/USD 19 SEPTEMBER 2011

GBP/USD

I got stopped out  at zero on Thursdays trade entry, and re-entered on the dip on Friday and then got stopped out with 36 pip loss overnight during the Asian session.

Price went on to take out the B low overnight, we now have a new B low, but not a decent swing low yet. Will see if this does becomes the low. We can only sell up at the 618/786 of this swing, or buy the BF786, for which we need a prior swing first.

SHORT: WILL ONLY BE GOING SHORT IF:

We need to wait for price to rally to the 618/786 and give us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a PT to the BF786. Stops are above the cs formations, max 50 pips.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We need a swing and then a fall to the BF786, we don’t have that at present and it will take a few hours to setup, so at present (05h22 GMT) there is no long trade setup on GBP.

The only other long entry opportunity will be a very bullish cs formation at the UK open.

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

EUR/USD 19 SEPTEMBER 2011

EUR/USD

No Trade setup on EUR yesterday.

We are still in a downtrend on the 1H chart. We have a B low that formed last Monday giving us a new AB swing. Price rallied to A swing high, albeit a small swing high, but never broke it.  Price has since fallen back and at present we are in no man's land on this chart. We need a rally and a bearish cs for a sell entry, or down at the BF786 for a buy entry, both after cs formations.

We have a more significant high at 4149, then 4283.

SHORT: Will be going short only IF:

Since price failed to take out the A high, if we get a rally and a bearish cs formation we will take that short entry with stop above the cs formation, max 50 pips and the limit will be a ST down to the BF786.

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this as a PT to the A high. Stops below the low – max 50 pips stop.

GBP/USD 16 SEPTEMBER 2011

GBP/USD

We had a test of the BF786 yesterday and I bought at 5763. I opted to stay in that trade as a ST setup and we’ll see today if we continue higher up. Note that the 60 pip limit has been reached yesterday already.

We are still in the same AB swing, yesterdays testing of the lows and then rallying higher might be a sign that we are in for a deeper retracement to the 618/786.  Today will be a DABF786 trading day where we expect a dip and a bullish cs formation for continuation of rally towards the 786. We are looking to buy dips towards the 786 up at 6001 – 10 pips inside at 5990.

  

SHORT: WILL ONLY BE GOING SHORT IF:

We need to wait for price to rally to the 618/786 and give us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a PT to the BF786. Stops are above the cs formations, max 50 pips.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

Since we have a DABF786 trading day, we are looking to buy dips towards the 786 up at 6001. Stops below the cs formation, max 50 pips, limits will be at 5990.

If we don’t get the dip and the bullish cs formation we are looking for then we don’t trade.

EUR/USD 16 SEPTEMBER 2011

EUR/USD

No Trade setup on EUR yesterday.

We are still in a downtrend on the 1H chart. We have a B low that formed Monday giving us a new AB swing. Price rallied to A swing high yesterday – albeit a small swing high, but never broke it. We will look to sell if we get there today and then get a bearish cs formation. If we take it out we will be starting a reversal on the 1h time frame.

We have a more significant high at 4149, then 4283.

Else long trade setups are only considered once we get to the BF786 and price gives us a bullish cs formation, or if we take out the swing high and start a reversal on this timeframe.

SHORT: Will be going short only IF:

We get a test of the highs of yesterday which is also a small swing high and then a bearish cs formation; trade it as a ST down to the BF786. Stops above the cs formations, 50 pips max.

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

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this as a PT to the 786. Stops below the low – max 50 pips stop.

Else if price takes out the 3935 highs we will then be reversing on this timeframe, we then have to wait for a new B to form and start all over again.

GBP/USD 15 SEPTEMBER 2011

GBP/USD

We had a bullish cs formation at the UK open yesterday as per our forecast, but I didn’t take the trade.

Price gave us the B low yesterday, so now we have the A up at 6082 and the B down at 5706. We now have to wait for a retracement to the 618/786 and then a bearish cs formation for a short entry.

Long trades can be considered since we have already hit the BF786 a few hours ago, we will wait and see if we get a test of that level at the opening of the UK session.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need to wait for price to rally to the 618/786 and give us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a ST to the BF786. Stops are above the cs formations, max 50 pips.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We have already hit the BF786 during the Asian session. We are looking for a test of that level during the UK session and a bullish cs formation thereafter. There are two possibilities here for a limit:

1.       Trade the entry for 60 pips since it’s a shallow bounce, with stops below the low of the cs formation – 50 pips max.

2.       Trade it as a ST since we have an indecision cs formation on the daily chart, which might be a sign that we are heading deeper into the swing – 786-6000.

EUR/USD 15 SEPTEMBER 2011

EUR/USD

No Trade setup on EUR yesterday.

We are still in a downtrend on the 1H chart. We have a B low that formed Monday giving us our current AB swing. Price rallied to the 618 overnight, we will sell a test of that level today if we get a bearish cs after that test, or else if price rallies higher to the 786 and we get a bearish cs formation there then we will short.

Else long trade setups are only considered once we get to the BF786 and price gives us a bullish cs formation.

If we don't get our cs formations at our fib levels then we don't trade.

  

SHORT: Will be going short only IF:

We get a test of the 618 and then a bearish cs formation; trade the 618 for 60 pips profit. Else if price rallies up to the 786 and then gives us a bearish cs formation, this will be a ST to the BF786. Stops above the cs formations, 50 pips max.

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this as a ST to the 786. Stops below the low – max 50 pips stop.

GBP/USD 14 SEPTEMBER 2011

GBP/USD

No trade setup on GBP yesterday.

Price took out the B low two hours ago so we now have to wait for another B to form before we can draw fibs. I would keep the A high up at 6082 since it’s the clearest swing high on the chart, since the highs at 5885 are more of a sideways range. Once we have the B we can ascertain where the 618/786 is.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Once we have the B low and plot the fibs, we then have to wait for price to rally to the 618/786 and gives us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a PT to the BF786. Stops are above the cs formations, max 50 pips.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We first need a B to form, once we have that we need a swing high and a test of the lows, with no B yet there might not be a trade setup for a BF today.

The only other possibility is a clear bullish cs formation at the UK open. Wait and see.

EUR/USD 14 SEPTEMBER 2011

EUR/USD

No Trade setup on EUR yesterday.

We are still in a downtrend on the 1H chart. We have a B low that formed Monday giving us a new AB swing. We can sell a bearish cs formation after a rally to the 618/786, or buy down at the BF786 after a bullish cs formation setup.

If price just continues down without a 618/786 retracement then we have no trade setup as per our strategy. We will then have to wait for a B to form again and start all over again.

SHORT: Will be going short only IF:

Price rallies to the 618/786 and gives us a bearish cs formation, trade the 618 for 60 pips profit and the 786 will be a PT to the BF786. Stops above the cs formations, 50 pips max.

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this as a PT to the 618. Stops below the low – max 50 pips stop.

GBP/USD 13 SEPTEMBER 2011

GBP/USD

No trade setup on GBP yesterday.

We are still in a downtrend on the GBP on the 1H chart. Price gave us a B low yesterday so we have a new AB swing in play. We can only sell up at the 618/786 after a bearish cs formation, or buy down at the BF786 after a bullish cs formation setup.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Price rallies to the 618/786 and gives us a bearish cs formation. Trade the 618 for 60 pips and the 786 will be a PT to the BF786. Stops are above the cs formations, max 50 pips.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get down to the BF786 and then get a bullish cs formation we will go long on the trade setup, place stop below the cs formation- 50 pips max, limits are set at 60 pips since it’s a shallow bounce.

EUR/USD 13 SEPTEMBER 2011

EUR/USD

No Trade setup on EUR yesterday.

We are still in a downtrend on the 1H chart. We have a B low that formed yesterday giving us a new AB swing. We can sell a bearish cs formation after a rally to the 618/786, or buy down at the BF786 after a bullish cs formation setup.

If price just continues down without a 618/786 retracement then we have no trade setup as per our strategy. We will then have to wait for a B to form again and start all over again.

SHORT: Will be going short only IF:

Price rallies to the 618/786 and gives us a bearish cs formation, trade the 618 for 60 pips profit and the 786 will be a PT to the BF786. Stops above the cs formations, 50 pips max.

LONG: Will be going long today only IF:

Price gets down to the BF786 and then gives us a bullish cs formation. Trade this for 60 pips profit since it’s a shallow bounce. Stops below the low – max 50 pips stop.