EUR/USD 30 JANUARY 2012

EUR/USD

Price rallied on Friday giving us a new B high so we have a new AB swing in play.

FOR TODAY:

We can only sell after price hits the BF786 and then gives us a bearish cs formation.

Else long trade setups are only considered down at the 618/786 of this AB swing.

SHORT: Will be going short only IF:

Price hits the BF786 and then gives us a bearish cs formation, trade this as a ST to the 786 since we already have a 618 prior bounce. If the prior bounce changes then we change the limit accordingly.  Stops 14 pips 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:

Price already hit the 618, so now we need a  bullish cs formation for a long trade setup. Else the next level will be the 786 lower down. Stops 10 pips below the low of the cs formation, max 1.5% risk. The limits for this entry should be 10 pips inside the BF786, check the risk/reward ratio IF we get a long setup and see if its viable.

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