GBP/USD 7 DECEMBER 2011

GBP/USD

We had a DA786 trading day yesterday but price fell and took out the stop and then found support at the 86 with a morning star formation.

FOR TODAY:

Today we will be  looking for long trade entries, buying dips until price reaches the BF786. We are looking for yesterdays support low to be holding.

If price takes out the A low then we will be reversing on this time frame.

SHORT: Will be going short only IF:

With the 86 fib bounce of yesterday, we can only sell up at the BF786 at 5732. This will have a limit down at the A low since we had an 86 prior bounce, stops above 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 are looking to buy dips after bullish cs formations until price hits the BF786. Stops below the low of yesterday’s cs formation, max 1.5% risk. This will be a ST entry so we don’t expect price to necessarily rally to the limit in one session.

For position traders – we were stopped out (at zero) of the long entry we were in. Use the dip and bullish cs formation – if we get one, to re-establish the long position.

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

EUR/USD 7 DECEMBER 2011

EUR/USD

No trade setup on Eur yesterday, price did give us a bullish cs formation, but it never bounced off the 786. We have rallied since.

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.

Else 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 – The long trade is still open. We can still add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618. Stop for entry is at zero already.

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

GBP/USD 6 DECEMBER 2011

GBP/USD

No entry on Cable yesterday, we were looking for a BF786, price came 18 pips shy of the BF786 and fell.

FOR TODAY:

Today we will be looking for a rally and a bearish cs formation for a short entry. The bearish cs formation inside yesterdays high will be confirmation that yesterdays high will be holding.

Long entries are still considered down at the 786 at 5579 after clear bullish cs formations. This will be considered a DD entry, good for a rally to the BF786.

If price takes out the A low then we will be reversing on this timeframe.

SHORT: Will be going short only IF:

We need a rally and a bearish cs formation for a short entry. Place stop above the cs formation, max 1.5% risk, and the limit will be 80-100 pips.

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 another bullish cs formation at the 786, or lower down while still inside the A low. This will be a ST with limits for this entry at the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 is still open, but doesn’t look good at present. The failure yesterday doesn’t bid well for our long entry and is likely the sign that price is heading to the A low over coming sessions. Stops are at zero, so no risk on this entry.

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

EUR/USD 6 DECEMBER 2011

EUR/USD

Price rallied and gave us the bearish cs formation we were looking for, but after our trading session. Price continued to drop the 80-100 pips. We are now back at the 618 of ther AB swing.

FOR TODAY:

Price rallied but didn’t get to the BF786 which would have been ideal for our strategy. We are now back at the 618 which is a buy territory. Our strategy is to buy at the 618/786 of the AB swing, If we do get a clear bullish cs formation at the current level which is the 618 then it will be considered a DD entry, else lower down at the 786 would be the next support to buy into after bullish cs formations.

But after the rally yesterday and the fall overnight we are reluctant to trade a long entry at current levels, since failure last night tells us that we might be heading back down.  If we get a clear bullish cs formation, try to place stop at cost asap, sell a bearish cs formation.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short entry today.  The limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk. If price rallies to the BF786 and then gives us a bearish cs formation, the limit will be at the 786 since we would have had a 618 prior bounce.

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 the 618, this will be a DD entry – good for 100 pips, it shows that the fib is holding, or lower down at the 786. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open but not looking to convincing right now, yesterdays failure tells us that we are likely heading back down to the A low of this swing. We can still add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618. Stop for entry is at zero already. 

The bearish cs formation after the rally yesterday was most likely the sign that we heading deeper into the AB swing, if not reversing on this timeframe.

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

GBP/USD 5 DECEMBER 2011

GBP/USD

Sterling gave us the bearish cs formation we were looking for and price fell to the 618 limit, even further to the 786.

FOR TODAY:

Price bounced off the 786 on Friday and opened higher during the Asian session. We will look to see if the 786 support will hold or if the bears are targeting the A low down at 5525.

If price takes out the A low then we will be reversing on this timeframe.

SHORT: Will be going short only IF:

Since we have already reached the 786, we can now only sell up at the BF786 up at 5735. This short entry will have a limit at the A low since we would have had a 786 prior.

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 another bullish cs formation at the 786, or lower down while still inside the A low. This will be a ST with limits for this entry at the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 would still be open, add to this on entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881. 

Stop at zero, so no risk on this entry.

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

EUR/USD 5 DECEMBER 2011

EUR/USD

Price gave us the BF786 entry we were looking for on Friday and fell the 100 pips. Price then bounced off the 618 of the AB swing.

FOR TODAY:

With the BF786 entry on Friday, today should be a DABF786 trading day where we expect price to continue down. For a short entry we would need a rally and a bearish cs formation. Be weary of support at the 618 at 3368 where we already bounced off.

Else we will be looking for long entries if we get another bullish cs formation at the 618, else lower down at 3320-786.

SHORT: WILL ONLY BE GOING SHORT IF:

We get a rally and then a bearish cs formation for a short entry today.  The limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk. 

If price rallies to the BF786 and then gives us a bearish cs formation, the limit will be at the 786 since we would have had a 618 prior bounce.

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 another bullish cs formation at the 618, showing that the fib is holding, or lower down at the 786. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open, we can add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618. 

Stop for entry is at zero already.

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

GBP/USD 2 DECEMBER 2011

PLEASE NOTE - TODAY IS NFP DAY !!! BROKERS MIGHT NOT HONOUR STOPS, SO MANAGE TRADES CAREFULLY IF YOU GOING TO ENTER TRADES TODAY !

GBP/USD

No trade setup on Sterling yesterday, price did rally to the BF786 and did give us a bearish cs formation , but after the session ended.

FOR TODAY:

Today we have a DABF786 trading day where we expect price to fall down to the 618 -5622 since our prior bounce yesterday was a 50. We will look to sell rallies after bearish cs formations.

Else if price rallies and takes out the B high at 5779, then we will be setting up for a new AB swing on this time frame.

SHORT: Will be going short only IF:

We would ideally like a small rally and a bearish sc formation for a short trade entry. Limit for this entry will be at the 618 -10 pips inside, since our prior BF786 bounce was a 50. Stop 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 get down to the 618/786 of this AB swing and price gives us a bullish cs formation. Trade the 618 for 80-100 pips and the 786 will be a ST to the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 would still be open, add to this on entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881.

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

EUR/USD 2 DECEMBER 2011

EUR/USD

No trade setup on EUR yesterday, price rallied to the BF786 but only gave us a bearish cs formation after the session ended. We are now back at the same price we were yesterday this time.

FOR TODAY:

Today we have a DABF786 trading day where we expect price to continue down, since yesterdays bounce was a shallow one we don’t expect too much of a fall today, although NFP can really move price.

Else if price rallies and takes out the B high at 3532 then we will have a new AB swing underway.

SHORT: WILL ONLY BE GOING SHORT IF:

We ideally would like a small rally and then a bearish cs formation for a short entry today.The limit for this entry will be 80-100 pips. 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 are looking for a retracement to the 618 or the 786 and then a bullish cs formation for a long trade setup. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – The long trade is still open, we can add to this position if we get entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618.

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

GBP/USD 1 DECEMBER 2011

GBP/USD

Sterling gave us the bullish entry at the 618 and price rallied 100 pips. Price went on to take out the B high and give us a new AB swing.

FOR TODAY:

We need a retracement to the 618/786 and a bullish cs formation for a long entry, or we need price to rally to the BF786, currently at 5756 and then a bearish cs formation for a short trade entry.

SHORT: Will be going short only IF:

Price gets up to the BF786 at 5756 and  gives us a bearish cs formation, trade this for 80-100 pips since it’s a shallow prior bounce. Stops above the cs formation.

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 618/786 of this AB swing and price gives us a bullish cs formation. Trade the 618 for 80-100 pips and the 786 will be a ST to the BF786. Stops below the cs formation, max 1.5% risk.

For position traders – The entry at the 618 yesterday would still be open, add to this on the entries mentioned above with all limits set at 5871 – 10 pips inside the 618 at 5881. Exit on a reversal on this time frame.

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

EUR/USD 1 DECEMBER 2011

EUR/USD

Price gave us the bullish entry we were looking for and rallied to the BF786 to the limit for a 77 pip profit. For the position traders that trade is still open. Price went on to take out the B high, giving us a new AB swing in play.

FOR TODAY:

We are now looking for a retracement to the 618/786 of this AB swing for a long trade setup, after a bullish cs formation. Price has bounced off the 382 thus far.

Else we can only sell up at the BF786 after a bearish cs formation, currently at 3508.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to rally to the BF786 up at 3508 and then we need a bearish cs formation confirming the short trade entry. We have a prior bounce less than a 382 so the limit for this entry will be 80-100 pips. Stop above the cs formation, max 1.5% risk.

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

LONG: WILL ONLY BE GOING LONG TODAY IF:

We are looking for a retracement to the 618 or the 786 and then a bullish cs formation for a long trade setup. Trade the 618 for 100 pips and the 786 will be ST to the BF786. Stops below the low of the cs formation, max 1.5% risk.

For Position traders – Yesterdays trade is still open, we can add to this position if we get the entries mentioned above, all limiting out at the 618 higher up – 3851, unless we reverse on this timeframe before we hit the 618.

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