EUR/USD 10 MAY 2012

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The long trade setup yesterday was stopped out for 40 pips loss. Price continued down and took out the B low giving us a new AB swing.

FOR TODAY:

With the new AB swing in play, we can only sell up at the 618/786 of this swing. 

Price already hit the BF786 late in the US session yesterday; a retest of this level followed by a bullish cs formation will initiate a long trade set-up.

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

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace up to the 618/786 of this AB swing, followed by confirming bearish cs formations for short entries. Place stop 13 pips above the cs formation, max 1% risk. Limits defined later.

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

LONG: WILL ONLY BE GOING LONG TODAY IF

Price already hit the BF786 during the late US session, today we will look for a test followed by a bullish cs formation for a long trade setup. Place stop 10 pips below the cs formation, max 1% risk. Limits will be 60-70 pips since it’s a shallow bounce.

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