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.

GBP/USD 29 NOVEMBER 2011

GBP/USD

No trade setup on GBP yesterday, price rallied and took out the A high doing a reversal on the 1h chart. We have since fallen back to the 618 of this AB swing.

FOR TODAY:

I don’t really like a spike through the 618 just shy of the 786 like we have on this pair. I prefer a more definite bounce either off the 618 or the 786.Today we will be looking for resumption of the rally to take out the 5593 B high. Will prefer a test of the 786 before we rally but will wait and see what we get.

Short trades are only considered up at the BF786 at 5567 after bearish cs formations.

SHORT: Will be going short only IF:

Price gets up to the BF786 at 5567 and gives us a bearish cs formation, trade this down to the 786 since we had a 618 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 have already bounced during the Asian session, we will look for a test of that level this morning and another bullish cs formation for a long trade setup, if the Asian support holds then we will enter long on that bullish cs formation, else we look for support lower down at the 786 followed by a bullish cs formation.

For position traders - Since this is the first bullish AB swing since price reversed yesterday, we could look to PT this up to the bigger 618 at 5881 on the daily, depending on entry it could be some 300 pips away. Remember if you do PT this it would be a limit that is days away.

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

EUR/USD 29 NOVEMBER 2011

EUR/USD

Price gave us a bearish cs formation after finding resistance at the 86 yesterday, this entry carries a BF786 limit down at 3261.

FOR TODAY:

Price bounced  during the Asian session and we are looking for a bearish cs formation to short again since today would be a DA86 trading day.

If price carries on rallying and takes out the A high up at 3410 then we will be reversing on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

Since today is a DA86 trading day, we are looking for a bearish cs formation to short down to 3261. We can only add to yesterdays position if we are more than 50 pips up on yesterdays entry.

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 down to the BF786 at 3251 and then get a bullish cs formation. Place stop below the low of the cs formation, limits will be set  10 pips inside the A high since we would have had an 86 prior.

For Position traders -  Once/ If we take out the high at 3410 and start the reversal process on this timeframe and price retraces back into the new AB swing and 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.

GBP/USD 28 NOVEMBER 2011

GBP/USD

No trade setup on GBP Friday. Price gave us the B low were waiting for. Price rallied to the 618 of the AB swing and fell back to the BF786, but it was outside our trading time. This bounce at the BF786 and the 618 prior tells us that price should be heading for the 786 up at 5534.

FOR TODAY:

We can only sell after we hit the 786 and get a bearish cs formation, or buy after we either hit the BF786 and get a bullish cs formation, or if price rallies and takes out the B high up at 5565 we will be reversing on this time frame.

SHORT: Will be going short only IF:

We need price up at the 786 at 5534 and a bearish cs formation for a short entry. Place stop above the high of the cs formation, limits set at the BF786. This will qualify as a ST.

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 a bullish cs formation for a long trade setup. Place stop below the low of the cs formation, limits will be set at the 786 at time of writing. Change limits accordingly if this changes during the trading day, depending on the prior bounces we get.

EUR/USD 28 NOVEMBER 2011

EUR/USD

No Trade setup on EUR Friday. Price gave us a B low late in the session, but no trade setup.

FOR TODAY:

Price gap opened at Asia last night around the 618 of the AB swing. We now have to wait for a BF786 down at 3239 and a bullish cs formation for a long trade setup, or a rally and a bearish cs formation  for a short entry, preferably at the 786 at 3368. We are currently just off the 618 but its more sideways action we see here during the Asian session.

SHORT: WILL ONLY BE GOING SHORT IF:

We looking for a rally and a bearish cs formation, preferably at the 786 up at 3368. This will be a ST to the BF786 down at 3329, place stop above the high of the bearish 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 down to the BF786 at 3239 and then get a bullish cs formation. Place stop below the low of the cs formation, limits will be set at the 786 up at 3358 – 10 pips inside the 786.

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

GBP/USD 25 NOVEMBER 2011

GBP/USD

No trade setup on GBP yesterday. Price also fell and took out its B low yesterday.

FOR TODAY:

We now have to wait for a B to form, once we have a B we can draw fibs to identify the 618/786. We can only sell at the 618/786, or buy a BF786, but first we need a B to form.

SHORT: Will be going short only IF:

After we have a B low, we then need price up at the 618/786 of this AB followed by a bearish cs formation before we can consider short entries. Stops above the cs formations and limits on the 618 is 100 pips, while the 786 entry will be a ST 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:

After the B has formed we need a swing high and then a fall to the BF786 followed by a bullish cs formation. Stops below the low of the cs formation, max 1.5% risk, and limit will be dependent on the prior bounce of the swing high.

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

EUR/USD 25 NOVEMBER 2011

EUR/USD

No Trade setup on EUR yesterday. Price fell and took out the B low overnight.

FOR TODAY:

We are now waiting for a new B to form with the A high now up at 3410. Once we have a B we can draw fibs to identify the 618/786. We can only sell at the 618/786, or buy at a BF786. We have neither so we have to wait for the setup to play itself out.

SHORT: WILL ONLY BE GOING SHORT IF:

We first need a B to form, then we can draw fibs and find the 618/786 at which to short after bearish cs formations.

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 first need a B , then a swing high and a fall to the BF786 and then a bullish sc formation.  Stop below the low of the cs formation, limit dependent on the prior bounce of the swing high.

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

GBP/USD 24 NOVEMBER 2011

GBP/USD

No trade setup on GBP yesterday. Price also fell and took out its B low, giving us a new B down at 5494, we will keep the A up at 5887 since we don’t have a decent swing high after the 5582 lows.

FOR TODAY:

We now have to wait for either a fall to the BF786 and a bullish cs formation for a long trade setup, or a rally to the 618/786 and a bearish cs formation for a short trade setup.

SHORT: Will be going short only IF:

We need price up at the 618/786 of this AB followed by a bearish cs formation before we can consider short entries. Stops above the cs formations and limits on the 618 is 100 pips, while the 786 entry will be a ST 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 get down to the BF786 and then get a bullish cs formation. Stops below the low of the cs formation, max 1.5% risk, and limit will be 80-100pips since we have a shallow bounce, less than a 382 prior.

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

EUR/USD 24 NOVEMBER 2011

EUR/USD

We traded the bullish cs formation at 06h00GMT yesterday and price reversed and we lost 38 pips on that trade.Price went on to take out the 3420 B low, thus giving us a new AB swing.

FOR TODAY:

We now have an A up at 3613 and the B down at 3319. Price bounced quite hard off the B low during the Asian session. We now have to wait for a BF786 and a bullish sc formation for a Long trade, or a sell up at the 618/786 of this swing.

SHORT: WILL ONLY BE GOING SHORT IF:

Price gets up to the 618/786, and thereafter gives us a bearish cs formation. Limits for the 618 is 100 pips and the 786 is a ST to the BF786. Stops above the cs formations, 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 need price to fall down to the BF786 and then give us a bullish sc formation. Trade the limit for 80-100 pips since it’s a shallow bounce at time of writing. Stops below the low, max 1.5% risk.

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

GBP/USD 23 NOVEMBER 2011

GBP/USD

Price stopped out for 50 pips loss yesterday on the BF786 long trade setup we entered.  The break of the low was not sustained ands price bounced right back into the old AB swing indicating that we’re in for a deeper retracement on this AB swing.

FOR TODAY:

We are now back at a BF786 trade opportunity with price having hit the BF786 during the Asian session.

We are now looking for a bullish cs formation for an entry point.

Else if price falls and takes out the B low on a sustained basis we will then have a new AB downswing in play.

SHORT: Will be going short only IF:

We need price up at the 618/786 of this AB followed by a bearish cs formation before we can consider short entries. Stops above the cs formations and limits on the 618 is 100 pips, while the 786 entry will be a ST 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 get a bullish cs formation from current levels or lower down while inside the B low. Stops below the low of the cs formation, max 1.5% risk, and limit will be 80pips since we have a shallow bounce, less than a 382 prior. We need to break yesterdays high to continue up, exit trade on a bearish cs formation at that level.

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

EUR/USD 21 NOVEMBER 2011

EUR/USD

The Trade entry from the previous day was stopped out t zero yesterday with the pullback. Euro is range bound trading in a 120 pip range. We need either the support at 3420 or resistance at 3656 to break to give some direction.

FOR TODAY:

We are currently sitting at support of this range, any bullish cs formation here would qualify for a long trade setup to the top of the range.

Else if price just continues down from here and breaks the support at 3420 we will have a new AB swing in play.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at the top of the range and a bearish cs formation for a short entry with limits set to the bottom of the range.

Else higher up at the 618/786, and then a bearish cs formation for a short trade setup. Limits for the 618 is 100 pips and the 786 is a ST to the BF786. Stops above the cs formations, 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 bullish cs formation at current levels or lower down while inside the B low, trade it to the top of the range, stops below the low of the cs formation, max 1.5% risk.

GBP/USD 22 NOVEMBER 2011

GBP/USD

There was no trade setup on Sterling yesterday, price fell and took out the B low giving us a new AB swing.

FOR TODAY:

We can only buy on a BF786 trade setup, or sell higher up at the 618/786 of this AB swing. At present (06h00 GMT) we have a BF786 setup with a morning star formation. This qualifies as a long trade setup.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at the 618/786, and then a bearish cs formation for a short trade setup. Limits for the 618 is 100 pips and the 786 is a ST to the BF786. Stops above the cs formations, 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 have entered long on the m/star formation as mentioned above. Stop below the low and limit on this trade is 80 pips since we have a shallow prior bounce, less than a 382.

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

EUR/USD 22 NOVEMBER 2011

EUR/USD

Price fell yesterday as anticipated and gave us the BF trade setup we were looking for with the bullish cs formation. Today we will look for EUR to extend gains towards the 618 up at 3661. Failing this we will take out the B low and form a new AB swing.

FOR TODAY:

Today is a DABF trading day where we will be looking for Eur to extend gains towards the 618 up at 3661. We need price to take out yesterdays high at 3540 in order to extend gains.

Yesterday’s entry is a ST so we will look to add on dips until 3651 – 10 pips inside the 618.

Else if price falls and takes out the B low we will then have a new AB downswing in play.

SHORT: Will be going short only IF:

Price rallies and tests Friday’s highs and gives us a bearish cs formation showing that the 50 is holding. This trade will be good for 100 pip profit since it will qualify as a DD entry. Stops 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 have a DABF trading day today, we can only buy on dips until 3651 is reached, we can also only add to yesterdays position once it is 50+ pips in the money.

So buy bullish cs formations after dips, stops below the low of the cs formation, max 1.5% risk, limits set at 3651 -10 pips inside the 618.

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

EUR/USD 21 NOVEMBER 2011

EUR/USD

Price gave us a bearish cs formation at the 50 fib of the AB swing in play. We never had an entry at this level since we were looking for the 618 to short at.

FOR TODAY:

With the evening star on Friday we might have price fall down to the BF786 at 3461 where we will be looking for a bounce. Else if we get a rally from current levels and get another bearish cs formation inside Fridays highs we will then be looking for short entries there, else higher up at the 618.

If price falls and takes out the B low we will then have a ne3w AB swing in play.

SHORT: Will be going short only IF:

Price rallies to test Fridays highs and gives us another bearish cs formation , else higher up at the 618/786 of this AB swing. Place stop above the high of the cs formation, max 1.5% risk, limits will be 80-100 pips 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.

LONG: Will be going long today only IF:

Price retraces to the BF786 down at 3461 and gives us a bullish cs formation. Trade this as a ST to the 618 since we already had a 50 prior bounce. Stops are placed below the low of the cs formation, max 1.5% risk.

If the BF786 fails to give us a bullish entry, we can look for one lower down while still inside the B low.

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

GBP/USD 21 NOVEMBER 2011

GBP/USD

Price rallied on Friday to the 50 of the AB swing and then gave us a bearish cs formation. This was also at past support that became resistance on Friday. 

FOR TODAY:

Price has retraced back to the BF786 during Asia. We will look for long entries on bullish cs formations either at the BF786, or lower down while inside the B low.
Else if price rallies to test Friday's high and thereafter gives us another bearish cs formation that will qualify as short entry.

Else if price falls and takes out the B low we will have a new AB swing forming.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a test of Fridays highs and a bearish cs formation, or we need price up at the 618/786, and then a bearish cs formation for a short trade setup. Limits for the 618 is 100 pips and the 786 is a ST to the BF786. Stops above the cs formations, 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 bullish sc formation from current levels since we have already hit the BF786. Else lower down while inside the B low will do as well. This entry will be a ST with limits set at the 618 since we have had a 50 prior bounce. Stops below the cs formation, max 1.5% risk.

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

GBP/USD 17 NOVEMBER 2011

GBP/USD

No trade setup on GBP yesterday. Price went sideways for most of the day and fell during the asian session, now were virtually back there again.

FOR TODAY:

Seems like we have a B formed on Sterling. We now have to wait for a BF786 and a bullish cs formation for a long trade setup, else shorts are considered only once we at the 618/786.

SHORT: Will be going short only IF:

Price rallies to the 618/786 of this AB swing and gives us a bearish cs formation. Place stop above the high of the cs formation, max 1.5% risk, limits for 618 is 100 pips and the 786 is a ST 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 can only go long on a BF786 trade setup, we need a swing high and a test of the B low by hitting the BF786, until then no trade setup for a long trade.

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

EUR/USD 17 NOVEMBER 2011

EUR/USD

Price gave us a bullish cs formation after the BF786 yesterday but that trade failed and we lost 46 pips.

FOR TODAY:

Price has found support at the B low of the AB swing, we had a morning star during the Asian session and price has rallied since. We will look to buy today, maybe on a test of that morning star.

Else if price falls and takes out the B low we will have a new AB swing forming.

  

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at the 618/786, and then a bearish cs formation for a short trade setup. Limits for the 618 is 100 pips and the 786 is a ST to the BF786. Stops above the cs formations, 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 already got the bounce out of support, will look to buy a test of that morning star formation, limit 80-100 pips since it’s a shallow bounce, stops 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 16 NOVEMBER 2011 UPDATE

EUR/USD 12H00 GMT
Price has formed a swing high and has come back to test the BF786. Will wait to see if we get a bullish cs formation after this test, or if price falls and takes out the low. 


Enter long on a bullish cs formation, stop below the low of the cs formation, max 1.5% risk, limit 100 pips since its a shallow bounce.


If price continues down then we have no trade setup, we need a bullish cs formation inside the B low.

GBP/USD 16 NOVEMBER 2011

GBP/USD

We were stopped out for 50 pips loss on the bounce out of support yesterday. Price went on to take out the range lows and give us a new AB swing.

FOR TODAY:

We are waiting for a B low to form. Once we have a B low we can draw fibs to see where we can short this pair at the 618/786.

Long trade setups are only considered on a BF786, which for now is a long way off.

SHORT: Will be going short only IF:

Price rallies to the 618/786 of this AB swing still to be confirmed. Place stop above the high of the cs formation, max 1.5% risk, limits for 618 is 100 pips and the 786 is a ST 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 can only go long on a BF786 trade setup, but first we need a B to form, then a swing high and a test of the B low by hitting the BF786, until then no trade setup for a long trade.

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

EUR/USD 16 NOVEMBER 2011

EUR/USD

Price reached the BF786 limit for 180 pips profit yesterday and then the BF786 long trade setup yesterday lost 50 pips. Price went on to take out the B low during the Asian session.

FOR TODAY:

We now have a new AB swing in play and the bearish trend seems firmly intact. We will look to sell rallies, wait for a retracement to the 618/786 and then a bearish cs formation.

Else we can only buy on a BF786, but right now (04h47 GMT) we don’t even have a B yet, so probably not going to happen today.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price up at the 618/786, and then a bearish cs formation for a short trade setup. Right now we don’t have a confirmed B so we don’t know where the 618/786 is going to be as yet.

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 BF786 trade setup and a bullish cs formation thereafter. But first we need a B to form, then a swing high and a test of the B low by bouncing off the BF786 at least, so this setup is probably not going to happen today.

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

GBP/USD 14 NOVEMBER 2011

GBP/USD

The long entry at 5915 was limited out at 6090 for 175 pips profit on Friday. Price rallied just shy of 6100, so we are virtually back at the BF786 on this pair.

FOR TODAY:

We need a bearish cs formation telling us that we are heading down again, this bearish cs formation can appear anywhere inside the B high which is at 6165. With a deep swing like we have been having we cannot rule out a test higher up. 

If price rallies and takes out the B high at 6165 we will have a continuation of the uptrend with the A down at 5868.

We will be reversing on this timeframe only once we violate the 5868 lows on a closing basis.

SHORT: Will be going short only IF:

We get a clear bearish cs formation, a test of the 6100 or higher would be better. Stop above the cs formation, max 1.5% risk, limits will be at the A low since it’s a ST with an 86 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 need price down at the 786 for a long trade setup. We are very far away from that level at present. The only other long trade possibility would be a clear bullish cs formation around the UK open.

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

EUR/USD 14 NOVEMBER 2011

EUR/USD

No trade setup on EUR on Friday, price rallied to the 86 of the AB swing.

FOR TODAY:

We need a bearish cs formation for a short entry while still inside the A high. If we break the A high we will be reversing on this timeframe.

Else we will be looking for bullish cs formations after price hits the BF786, much lower down.

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

SHORT: WILL ONLY BE GOING SHORT IF:

Price has already hit the 786/86 of this AB swing, so we are in sell territory at present. We need a clear bearish cs formation to enter a short trade setup. This entry will be a ST down to the BF786, stops above the high 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.

LONG: WILL ONLY BE GOING LONG TODAY IF:

We get a BF786 trade setup and a bullish cs formation thereafter. Trade this as a ST since we would have had an 86 prior. Stops below the low of the cs formation, max 1.5% risk.

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

GBP/USD 11 NOVEMBER 2011

GBP/USD

Price gave us the bounce we were looking for out of support yesterday, but in the US session price fell back, and then gave us another bullish cs formation which I entered long at 5915. Will look for this to extend towards 6090.

FOR TODAY:

With the bullish cs formation out of the 5875 support yesterday, we are expecting price to rally today, maybe even get a test of the lows first before a rally to the 6090 price area. Buy dips towards the 6090 price area.

Else if price rallies and gives us a bearish cs formation inside yesterday’s highs it will be resumption of the downtrend and price will be heading for the 5875 lows, else higher up around 6080/6120. 

Only when price falls and takes out the 5875/5868 lows on a closing basis will we be reversing on this pair, until then we are range bound in a 200-250 range.

SHORT: Will be going short only IF:

We get to the 6100/6120 price area and get a clear bearish cs formation. Stop above the cs formation, max 1.5% risk, limits will be at the 5930 price since it’s a ST.

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 for dips to buy into today with price looking to rally to the 6090 area, look for either a dip or a test of the lows and a bullish sc formation for a long entry, stop below the low, max 1.5% risk, limits set at the 6090 price since it will qualify as a ST setup.

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

EUR/USD 11 NOVEMBER 2011

EUR/USD

No trade setup on EUR yesterday, price gave us the B of the AB swing and bounced strong off the low. We did get a bearish cs formation at the 3650 area as mentioned yesterday, but the fall wasn’t sustained.

FOR TODAY:

We need price to fall down to the BF786 and give us a bullish cs formation for a long trade setup.

Else we will be looking for bearish cs formations after price hits the 618/786 up at 3720/3784 respectively.

SHORT: WILL ONLY BE GOING SHORT IF:

We get to the 618/786, which is higher up at 3720 and 3784 respectively, and then get bearish cs formations. Place stops above the cs formations, max 1.5% risk, limits are 100 pips for the 618 entry – or a ST to 3380, and the 786 will be a ST to the BF786 – or down to 3380, depending on your trading style.

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 BF786 trade setup and a bullish cs formation thereafter. Trade this for 80-100 pips limit since it’s a shallow bounce. Stops below the low of the cs formation, max 1.5% risk.

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

GBP/USD 10 NOVEMBER 2011

GBP/USD

Price gave us the bearish cs formation we were looking for yesterday and fell down to the limit at 5930 in the same day, was expecting this to be a ST.

FOR TODAY:

With price falling down to the 86 of the swing we are technically supposed to buy bullish cs formations. Look for a test of the lows and a bullish cs formation to go long.

Else if price rallies and gives us a bearish cs formation it will be resumption of the downtrend and price will be heading for the 5875 lows,  only when  price falls and takes out the 5875 low will we be reversing on this pair.

SHORT: Will be going short only IF:

We will be looking for a rally and a bearish cs formation to short this pair. We have support that could turn into resistance at 5945/5980 and a 382 at 5987, so at any of these levels we could expect price to reverse. Failing this we have a 618 up at 6042. Stops above the cs formation, max 1.5% risk, limits can be either 100 pips or a ST down to the 5620 area, or 5470 area.

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

LONG: Will be going long today only IF:

Since we are still in the up-trend on the 1h chart, not having taken out the 5875 lows yet, we will look to buy on a test of the overnight lows after bullish cs formations. This will be considered a ST with limits set up at the BF786.

Be aware of the selloff we had yesterday, so if we get a clear bearish cs formation we will exit and reverse.

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