GBP/USD 31 OCTOBER 2011

GBP/USD

Was stopped out at zero on the trade setup entered in at 6017. Price fell considerably during Asia, past the 618 of the AB swing in play.

FOR TODAY:

Price has fallen past the 618 but not into the 786 as yet. Will wait to see if we don’t get a test of the 786 before we bounce.

Else we can only sell up at the BF786, which at present (05H22 gmt) is up at 6111.

SHORT: Will be going short only IF:

We rally to the BF786 and then get a clear bearish cs formation, the limit here will depend on the prior bounce.

LONG: Will be going long today only IF:

We get down to the 786 and then get a bullish cs formation, trade this as a ST to the BF786.

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

EUR/USD 31 OCTOBER 2011

EUR/USD

No trade setup on EUR on Friday. Price went sideways for both sessions.

FOR TODAY:

We had a big drop during Asia, just shy of the 618 of the current AB swing. We can only buy after price hits the 618/786 or sell up at the BF786.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and a bearish cs formation after hitting the BF786. The limit will depend on the 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 can only go long at the 618/786 of this swing, that quite far off for now. Trade the 618 with a limit of 100 pips and the 786 will be a ST to the BF786. Stops below the cs formations, max 50 pips.

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

GBP/USD 28 OCTOBER 2011

GBP/USD

Traded the dip yesterday, entered at 6017, still in that trade, looking for it to extend to 6320 over coming sessions.

FOR TODAY:

We have a new AB swing in play here, we can only buy at the 618/786 and sell after price hits the BF786 and gives us a bearish cs formation.

I am of the opinion that over coming sessions Sterling is heading for the 6320 price where we have a 786 on the daily chart.

SHORT: Will be going short only IF:

We rally to the BF786 and then get a clear bearish cs formation, this will be good for 100 pips since it’s a shallow bounce prior. Stops above the cs formation.

LONG: Will be going long today only IF:

We get down to the 618/786 and then get a bullish cs formation, trade this for 100 pips at the 618, and the 786 will be a ST to the BF786.

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

EUR/USD 28 OCTOBER 2011

EUR/USD

No trade setup on EUR yesterday. We never got the dip we were looking for to enter the rally.

FOR TODAY:

We now have a new AB swing in play, a big one. We have to now wait for a BF786 for a short entry, or a long entry at the 618/786 of this swing.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and a bearish cs formation after hitting the BF786. Trade this for 100 pips since the prior bounce will be less than a 382.

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 can only go long at the 618/786 of this swing, that's quite far off for now. Trade the 618 with a limit of 100 pips and the 786 will be a ST to the BF786. Stops below the cs formations, max 50 pips.

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

GBP/USD 27 OCTOBER 2011

GBP/USD

Traded the BF on Sterling, limited out at 100 pips profit. Price went on to fall and bounce off the 382 fib.

FOR TODAY:

With the sharp bounce overnight we are looking for resumption of the rally today, with price heading to take out the B high. We will look to buy dips for 80-100 pips profit.

SHORT: Will be going short only IF:

We get a clear bearish cs formation from current levels, trade stop above the cs formation, limit 80-100 pips since it’s a 382 prior bounce. Beware of bullish cs formations, if in a short trade, reverse if we get a clear bullish cs formation.

LONG: Will be going long today only IF:

We get a dip and a bullish cs formation, trade it for 80-100 pips since price might be heading to break the B high and head higher up. Stop below the low of the cs formation –max 50 pips.

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

EUR/USD 27 OCTOBER 2011

EUR/USD

We got stopped out on the short EUR trade lost 50 pips, had another short signal, but stop was too big.

FOR TODAY:

With the sharp rally overnight off the 50 fib level we are looking for price to extend today. We will look to buy dips if they present themselves, else if we get a clear B high we will wait for a pullback to the 618/786 of the new swing to be formed.

SHORT: WILL ONLY BE GOING SHORT IF:

We have already taken out the B high, but as yet don't have a new B high. Short if we get a clear bearish cs formation at current levels – below 1 4000, stop above the cs high, limits set at the 618 since we would have had a 50 fib prior bounce. 

Beware of bullish cs formations, the bears might just be driving price down in order to re-instate long trade setups and rally from there.

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 dip and a clear bullish cs formation, trade it for 80-100 pips. Else we are waiting for a new B to form and price to drop to the 618/786 of the new swing.

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

GBP/USD 26 OCTOBER 2011

GBP/USD

No trade setup on Sterling yesterday.

FOR TODAY:

Price rallied for the B high yesterday but failed to break it on a closing basis pulling back into the AB swing. If we break the B on a closing basis we will have a new AB swing in play and we will start all over again.

Else if we get a bearish cs formation from current levels it qualifies as a BF786 short entry.

SHORT: Will be going short only IF:

We get a clear bearish cs formation from current levels, trade stop above the cs formation, limit 80-100 pips since it’s a shallow bounce.

LONG: Will be going long today only IF:

We get down to the 618/786 of this AB swing, once we at the 618, enter after a bullish cs formation. Stop below the low of the cs formation. Limit for the 618 is 80-100 pips, 786 will be a ST to the BF786.

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

EUR/USD 26 OCTOBER 2011

EUR/USD

We had a BF786 trade short entry setup yesterday which we are still in. We will add to the position on bearish cs formations if we get them today and if we have more than a 50-60 pip difference between entries.

Else if we rally from here and take out the B then we will lose on this trade and continue up.

FOR TODAY:

We will look to see if we get a test of that evening star today and another bearish cs formation since we have a DABF786 trading day today.

Else if price takes out the B high we will have a new AB swing in play and start all over again.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a test of the high and a bearish cs formation after that, trade stop above the cs formation 50 pips max. Limits must be 80-100 pips since it’s a shallow bounce. Only add to the position if difference is 50+pips between two 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:

We get a dip to yesterdays lows  and a clear bullish cs formation, trade it for 80 pips since the bulls will probably target the A high. Else if price dips all the way to the BF786 we will look to buy there.

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

GBP/USD 25 OCTOBER 2011

GBP/USD

No trade setup on Sterling yesterday.

FOR TODAY:

Price rallied for the B high yesterday but failed to break it and seems to be pulling back into the AB swing. If we break the B on a closing basis we will have a new AB swing in play and we will start all over again.

SHORT: Will be going short only IF:

We get a clear bearish cs formation from current levels, trade stop above the cs formation, limit 80-100 pips since it’s a shallow bounce prior.

LONG: Will be going long today only IF:

We get down to the 618/786 of this AB swing, once we at the 618, enter after a bullish cs formation. Stop below the low of the cs formation. Limit for the 618 is 80-100 pips, 786 will be a ST to the BF786.

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

EUR/USD 25 OCTOBER 2011

EUR/USD

No trade setup yesterday, price bounced at gave us a BF786 after our trading session.

FOR TODAY:

We will look to see if we get a test of that evening star today and another bearish cs formation for a short entry.

Else if price takes out the B high we will have a new AB swing in play and start all over again.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a test of the high and a bearish cs formation after that, trade stop above the cs formation 50 pips max. Limits must be 80-100 pips since it’s a shallow bounce.

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 down at the 618/786 for a long entry opportunity, which for now is quite far away.

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

GBP/USD 24 OCTOBER 2011

GBP/USD

Also a nice dip and a bullish cs formation on Friday, but was too close to the exit at the 786 so never took the trade. Price then rallied and took out the A high doing the reversal on the 1h chart.

FOR TODAY:

We looking for a new B high still on Sterling. Once we have that we can draw fibs and check for the 618/786, places to enter long trade setups. 
Else shorts are only considered once we have a BF786 setup.

SHORT: Will be going short only IF:

We get a BF786 setup, we will need a swing low and a test of the BF786, we have none of these as yet. So for now no short trades on Cable.

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, once we at the  618, enter on confirmation of a bullish cs formation. 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 24 OCTOBER 2011

EUR/USD

Price gave us the dip and the bullish cs formation we were looking for on Friday, limited out for 96 pips profit, 10 pips inside the 786-3857.

FOR TODAY:

If we get a bearish cs formation at these highs it will qualify as a short entry since we are still inside the A high. Stop above the cs formation, limit down at the BF786.

With recent price action we don’t expect to see the above, but rather looking for below:

Today we are looking for price to extend and break the A high doing a reversal on the 1h chart. Once we have this we need to wait for a new B to form, then a pullback to the 618/786 for a long opportunity.

SHORT: WILL ONLY BE GOING SHORT IF:

We get  a clear bearish cs formation inside the A high, trade stop above the cs formation 50 pips max. Limits set at the BF786 – If we get a bullish cs formation exit the short and reverse since we are expecting the bulls to rally for the highs today.

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 dip and a clear bullish cs formation, trade it for 80 pips since the bulls will probably target the A high. Else if price dips all the way to the BF786 we will look to buy there.

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

GBP/USD 21 OCTOBER 2011

GBP/USD

Price gave us the bearish cs formation we were looking for, entered at  5766, limited out for 76 pips profit. Price then gave us a bullish cs formation just shy of the BF786. We couldn’t take that trade.

FOR TODAY:

Today we are looking for a bearish cs formation to sell into, we have bounced off the 86 during Asia, so a test of that level and a bearish cs formation will constitute a short trade setup. Else a test of the yesterdays lows or the BF786 a and a bullish cs formation will initiate a long trade setup.

SHORT: Will be going short only IF:

We get a test of the Asian highs and a bearish sc formation, even higher up inside the A high, trade to the BF786, stop above the high max 50 pips.

LONG: Will be going long today only IF:

We get down to yesterdays lows, or even the BF786 and then get a bullish cs formation, trade this as a ST to the A high since we would have already have had an 86 prior. This entry will be giving us heads up that price is heading for the A high at 5851. But if we get a clear bearish cs formation higher up, exit the trade to be safe.

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

EUR/USD 21 OCTOBER 2011

EUR/USD

Price gave us a bullish cs formation at the BF786 yesterday and rallied, but couldn’t take out the previous day’s high. We then had another bearish cs formation that we were waiting for, but the stop was too big, price fell only to find support at the B low again with another bullish cs formation. Price then rallied off the support, once again, stop was too big.

FOR TODAY:

The BF yesterday is an indication that we are heading to take out the A up at 3913 and continue higher over coming days. But for now we seem to be stuck inside the AB swing in a 200 pip range between 3860 and 3650. For now we can trade the range by buying bullish cs formations at support and selling bearish cs formations at resistance.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and a bearish cs formation either at the highs of yesterday, or higher up inside the A high. Trade this down to the BF786. Stops above the high of the cs formation.

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 get another test of the lows and get a bullish cs formation, trade this to the 786. Stop below the low of the cs formation max 50 pips.

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

EUR/USD 20 OCTOBER 2011 UPDATE

Exit EUR short and reverse for long trade
Might re-establish short later if opportunity arises.

GBP/USD 20 OCTOBER 2011

GBP/USD

No trade entry on GBP yesterday, price did give us the bearish cs formation we were looking for, but missed our entry by 1 pip, price came to 5809, and forward order was at 5810. Price then fell overnight.

FOR TODAY:

Today is a DA86 trading day where we are looking for price to continue down towards the B low. We will look to sell rallies after bearish cs formations. We can look to ST these entries as well, maybe down to 5500, just inside the 618 at 5492, unless we get a clear bullish cs formation at the BF786, trade this long and exit on a clear bearish cs higher up – if we get one.

SHORT: Will be going short only IF:

We get a rally and a bearish cs formation, trade this as a ST to the 5500 area mentioned above, stop above the cs formation, max 50 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 down to the BF786 and then get a bullish cs formation, trade this as a ST to the A high since we would have already have had an 86 prior. 

This entry will be giving us heads up that price is heading for the A high at 5851. But if we get a clear bearish cs formation higher up, exit the trade to be safe.

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

EUR/USD 20 OCTOBER 2011

EUR/USD

Price gave us the bearish cs formation we were looking for yesterday, entry at 3829, lets see if this will wind up being a good ST to 3438- 618 on daily chart. Add to the position by selling rallies. Price fell during Asian session and we are at the BF786 territory so watch out for a bounce at this level.

FOR TODAY:

Price is currently at the BF786 territory, with the bearish cs formation yesterday and the short entry we are looking for price to continue down today. We will look to sell rallies after bearish cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and a bearish cs formation. Trade this down to the 618 at 3438 on the daily chart. Stops above the high of the cs formation.

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:

Technically we should be buying bullish cs formations at the BF786, but for now I would use the rally (if we get one) as a waiting opportunity for a bearish cs formation to sell into.

But you can buy bullish cs formations at the BF786 as per normal, just be careful for bearish cs formations, exit and reverse then.

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

GBP/USD 19 OCTOBER 2011

GBP/USD

Price gave us the DABF trading day yesterday with price falling down to the BF786 and further to take out the A low doing a reversal again on the 1h chart. Trade was good for 80 pips profit. We now have a new bearish AB swing in play. Price has retraced back to the 618 so new are already in sell territory.

FOR TODAY:

With the new AB downswing in play we need a bearish cs formation at the 618/786 for a short trade setup. Else if we get down to the BF786 and we get a bullish cs formation, we will go long as a ST with limits set at the 786 since we would have had a 618 prior.

SHORT: Will be going short only IF:

We are already in short territory, enter short on a clear bearish cs formation setup, stop above the high of the cs formation. Trade this as a ST opportunity since we have a clear bearish cs formation on the daily chart. Stops above the high of the cs formation, max 50 pips.

LONG: Will be going long today only IF:

We get down to the BF786 and then get a bullish cs formation, trade this as a ST to the 786 since we would have already have had a 618 prior.

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

EUR/USD 19 OCTOBER 2011

EUR/USD

Price gave us the bearish cs we were looking for yesterday, trade was good for 80 pips profit. Price then went on to take out the B low giving us a new AB swing in play; this violation of the support A low also initiated a reversal in the 1h trend to bearish. We need price to now take out the B support low at 3652 to confirm the downtrend.

FOR TODAY:

Price is currently at the 618 of the AB swing, we are in sell territory, any clear bearish cs formation from current levels will qualify for a short trade setup with price heading towards the B low at 3652. Place stop above the cs formation, max 50 pips. Limits at the 618 usually attract a 80 pip limit, but seeing that we have a good cs formation on the daily chart we can ST this entry.

SHORT: WILL ONLY BE GOING SHORT IF:

We are already at the 618 of the swing. We will short if we get a bearish cs formation from current levels, else higher up at the 786, this will be a ST with limits set 3530 – 50 on the daily.

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 get down to the BF786 and then get a bullish cs formation, this will attract a limit to the 786 since we would have had a 618 prior. Stops below the low max 50 pips.

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

GBP/USD 18 OCTOBER 2011

GBP/USD

Price also gave us the BF786 entry we were looking for yesterday, but here also our FO was not filled, price just missed our forward order. Price went on to fall to the 618 of the AB swing and bounced off it during Asia.

FOR TODAY:

The DD bounce off the 618 tells us that price is good for a 100 pip rally so looks like it could be good to break the B high. 

Else if we get a clear bearish cs formation at the BF786 we will have a ST setup towards the 786.

SHORT: Will be going short only IF:

Price rallies and hits the BF786 and gives us a bearish sc formation after that. This will be a ST to the 786 since we would have had a 618 prior. Stops will be above the cs formation, max 50 pips.

LONG: Will be going long today only IF:

We get a test of yesterdays lows and a clear bullish cs formation, trade this as a DD with a limit of 100 pips, stop below the low, 50 pips max. Else the next long trade opportunity will be at the 786 lower down at 5705.

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

EUR/USD 18 OCTOBER 2011

EUR/USD

Price gave us the BF trade setup we were looking for yesterday, but the stop was too big for the trade. Price went on to fall down to the 786 of the AB swing and bounced off it during the Asian session.

FOR TODAY:

With the bounce off the 786 during the Asian session we can expect price to either test the 786 again and give us a bullish cs formation, or we can rally from current levels towards the BF786, or lastly we can get a rally and a bearish cs formation looking to take out the A low.

SHORT: WILL ONLY BE GOING SHORT IF:

Price rallies to the BF786 and then gives us a bearish cs formation. This entry will be a ST to the A low since we would have had a 786 bounce. Stops will be above the cs formation, 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:

Price tests the 786 and we get another bullish cs formation telling us that we are heading higher up towards the BF786. Trade this as a ST with limits set at the BF786, stops below the low of the cs formation, max 50 pips.

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

GBP/USD 17 OCTOBER 2011

GBP/USD

No trade setup on GBP Friday. Price rallied to take out the B high confirming resumption of uptrend on 1h time frame, making higher highs and higher lows.

FOR TODAY:

We now have a new A-5665, B-5851 swing in play on the 1h chart. We can only buy dips at the 618/786 and sell rallies after price hits the BF786.

SHORT: Will be going short only IF:

Price rallies and hits the BF786 and gives us a bearish cs formation after that. Trade this entry for 80 pips since we have a shallow bounce. Stops will be above the cs formation, max 50 pips. 

LONG: Will be going long today only IF:

We need a fall to the 618 and a bullish sc formation after that for a long trade setup. This entry will attract a limit of 80 pips with a stop below the low, 50 pips max. Else the next long trade opportunity will be at the 786 lower down at 5705.

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

EUR/USD 17 OCTOBER 2011

EUR/USD

Price gave us a BF786 and a bearish cs formation on Friday, the trade was stopped out for 50 pips loss. Price rallied in the afternoon session to test 3900.

FOR TODAY:

Price has now confirmed the reversal by taking out the old B high giving us a new AB swing, we are now making higher highs and higher lows. We will look to buy dips at the 618/786 of this swing or sell BF786 after bearish cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

Price rallies to the BF786 and then gives us a bearish cs formation. This trade will attract a limit of 80 pips since it’s a shallow bounce. Stops will be above the cs formation, 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:

Price gets down to the 618-3764 price area and gives us a bullish cs formation. Trade this entry for a limit of 80 pips, stop below the low of the cs formation. Else if price falls past the 618, the next long entry opportunity will be the 786 at 3729.

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

GBP/USD 14 OCTOBER 2011

GBP/USD

No trade setup on GBP yesterday. Price never retraced to the BF786 yesterday morning, it did however give us a BF786 and a bearish cs formation late last night, outside our trading hours.

FOR TODAY:

We are still in the AB swing, today we have a DABF786 trading day. We are looking for a short entry only after a bearish cs formation from current levels since price already hit the BF786.

Long trades will only be considered once price gets down to yesterdays support and then gives us a bullish cs formation, showing that the support level is holding, else lower down at the 618/786, which is very far away right now.

SHORT: Will be going short only IF:

We have a DABF786 trading day, we are looking for price to fall, so we are looking to sell rallies after bearish cs formations, we currently have a bit of a rally setting up, if we get a bearish cs formation from current levels we will go short, stop above the cs formation, limits can be 80-100 pips.

LONG: Will be going long today only IF:

We get down to the 5665 price support and we get a bullish cs formation, this will tell us that price is holding and probably now going to rally, a DD entry formation. Trade this for 100 pips profit, stop below the cs formation, else if we get down to the 618/786 and then get a bullish cs formation. Trade the 618 cs formation for 80-100 pips and the786 entry will be a ST to the BF786. Stop below the cs formation, 50 pips max.

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

EUR/USD 14 OCTOBER 2011

EUR/USD

Price gave us a BF786 and a bearish cs formation, but the  stop was too big for the trade, price never came back to test the cs formation until after the UK session closed . Price rallied late in the afternoon session to test 3800.

FOR TODAY:

We are still in the AB swing, we will still go short if we get a bearish cs formation at current levels or higher up inside the B high. We have interim support down at 3684, if we fall and get a bullish cs formation around that price it will be a bullish sign, else we need price way down at the 618/786 of this swing for a long trade setup. Both of these entries will be confirmed by cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

Price gives us a bearish cs formation from current levels, or higher up as long as its inside the B high. Trade this for 80-100 pips since it’s a shallow bounce. Stops above the cs formations, 50 pips max.

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 get down to support at 3684 and get a bullish cs formation, this will serve as a double dip and will be good for 100 pip run, or we need price way down at the 618/786 of this AB swing, which is very far away at present. Once we hit the 618 wait for a bullish cs formation, place stop below the low of the cs formation, max 50 pips stop, limit will be 80-100 pips for the 618 entry. Else lower down at the 786 will be the next opportunity.

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

Hi Fellow Traders


Its been six months of daily forecasts on this blog-site. There are quite a few traders out there following me on a daily basis.


From the 1st November I will be switching over to a paid service for the forecast. I am still sorting out the logistics but that is the general idea. Any traders wishing to continue to receive the forecast (which I will give in more detail since its a paid service) can continue to do so by email me on davidmartin@telkomsa.net and I will forward you further information.

GBP/USD 13 OCTOBER 2011

GBP/USD

No addition short trade setup yesterday, got stopped out at zero with previous days trade, trade was in 80 pips hence stop at zero. Price rallied on to take out the A high, doing a reversal on the 1H Chart.

FOR TODAY:

We have a new AB swing, with the A down at 5270, and the B at 5797. We can only sell after price hits the BF786 and gives us a bearish cs formation.

Long trades will only be considered once price gets down to the 618/786, which is very far away right now.

SHORT: Will be going short only IF:

Price rallies and hits the BF786 and then gives us a bearsh cs formation. Trade this for 80 pips since it’s a shallow bounce. Stops above the highs of the cs, max 50 pips.

LONG: Will be going long today only IF:

We get down to the 618/786 and then get a bullish cs formation. Trade the 618 cs formation for 80 pips and the786 entry will be a ST to the BF786. Stop below the cs formation, 50 pips max.

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

EUR/USD 13 OCTOBER 2011

EUR/USD

No trade setup on EUR yesterday. Price went on to rally to take out the A high, starting the reversal process on the 1H chart.

FOR TODAY:

We now have a new AB upswing in play. The A is down at 3144 and the B is at 3833. This is a very big AB swing. We now have to wait for either a BF786 setup for a short trade entry, or we need price way down at the 618/786 of this swing for a long trade setup. Both of these entries will be confirmed by cs formations.

SHORT: WILL ONLY BE GOING SHORT IF:

Price rallies to the BF786 and gives us a bearish cs formation after that, or we get another run at the highs and then get a bearish cs formation. Trade this for 80 pips since it’s a shallow bounce. Stops above the cs formations, 50 pips max.

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 way down at the 618/786 of this AB swing, which is very far away at present. Once we hit the 618 wait for a bullish cs formation, place stop below the low of the cs formation, max 50 pips stop, limit will be 80 pips for the 618 entry. Else lower down at the 786 will be the next opportunity.

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

Hi Fellow Traders


Its been six months of daily forecasts on this blog-site. There are quite a few traders out there following me on a daily basis.


From the 1st November I will be switching over to a paid service for the forecast. I am still sorting out the logistics but that is the general idea. Any traders wishing to continue to receive the forecast (which I will give in more detail since its a paid service) can continue to do so by email me on davidmartin@telkomsa.net and I will forward you further information.


Regards
David

GBP/USD 12 OCTOBER 2011

GBP/USD

Price gave us a bearish cs formation yesterday.

Price remained pretty sideways for most of the session yesterday, falling down very late in the day.

FOR TODAY:

If price rallies and tests yesterday’s highs and then gives us a bearish cs formation, this will be confirming that we have a high in place with focus then on the BF786.

Else if we don’t get a bearish cs formation and price rallies to take out the 5715 highs, we will then be reversing on the 1H chart.

SHORT: Will be going short only IF:

We get a bearish cs formation after a short rally, or at yesterday’s highs, or higher up inside the A high. These will all be ST with limits set at the BF786. Stops above the highs of the cs, max 50 pips.

LONG: Will be going long today only IF:

We get down to the BF786 and then get a bullish cs formation. Trade this as a ST to the A high since we would have had a 86 prior. Stop below the cs formation, 50 pips max.