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.