EUR/USD 8 DECEMBER 2011

EUR/USD

Price gave us the bullish cs formation inside the previous day’s lows as per our daily analysis. We went long and we are still in that trade, with limits set up at the BF786 -10 pips inside.

FOR TODAY:

We will look for price to continue up today and we will be buying dips after bullish cs formations until price reaches the BF786, we can only add to current position once we are 50+ pips in the money on the current entry.

Only if price falls and takes out the A low down at 3258 then we will be reversing on this timeframe.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short either inside the 3485 highs, or higher up at the BF786 at 3501.  The limit for this entry will be at the 786 since we had a 618 prior bounce. 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 get a clear bullish cs formation at or inside yesterdays lows, or down at the 786, or inside the A low. Trade this to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – For Position traders – We added to the long entry yesterday with the dip and the bullish cs formation. Limits for both trades are still 10 pips inside the daily 618 at 3841. Stop for first trade is at zero. We will exit on a reversal on this time frame, or on a BF786 after a 786/86 prior bounce.

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