Friday, 7 October 2011

GBP/USD 7 OCTOBER 2011


REMEMBER TO IS NFP, I DON'T TRADE ON NFP DAY, BROKERS DON'T HONOUR STOPS DUE TO POTENTIAL VIOLENT MOVEMENTS. 

GBP/USD
Price gave us the bullish cs formation for addition to the long trade towards 5736, price then reversed and stopped us out on both trades. I suffered slippage and what should have been a 50 pip stop turned out to be a 97 pip stop.

Price went on to take out the B low but failed to follow through, this tells us that price is heading higher over coming days. We do now have a new AB swing, with the B being down at 5270. We now need price down at the BF786 with a bullish cs formation for a long trade setup, or up at the 618/786 followed by a bearish cs formation for a short trade setup.

SHORT: Will be going short only IF:
Shorts are only considered up at the 618/786 areas after bearish cs formations.  Stops above the cs formation - max 50 pips. Limits at the 618 will be 80 pips, and the 786 will be a ST to the BF786.

LONG: Will be going long today only IF:
We get down to the BF786 and then get a bullish cs formation. Trade this for 80 pips since it will be a shallow bounce. Stop below the cs formation, 50 pips max.

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

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