Tuesday 22 November 2011

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.

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