HOLIDAY ANOUNCEMENT

Please note that I will be off the desk till Monday 16th January 2012.

HOLIDAY ANOUNCEMENT

Please note that I will be off the desk till Monday 16th January 2012.

GBP/USD 15 DECEMBER 2011

GBP/USD

No trade setup on Cable yesterday. Price found resistance at the 5520 area as per analysis and reversed. Price then took out the B low and gave us a new AB swing, A 5531, B 5407.

FOR TODAY:

Price bounced up to the 618 of the AB swing yesterday, we can only buy bullish cs formations after price hits the BF786, and sell after bearish cs formations at the 618/786.

SHORT: Will be going short only IF:

We need price up at the 618/786 and a bearish cs formation for a short entry. Trade the 618 for 50-60 pips and the 786 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 need price down at the BF786 and then a bullish cs formation for a long entry. Limit at the 786 since we have a 618 prior. Stop below the low of the cs formation.

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

EUR/USD 15 DECEMBER 2011

EUR/USD

No trade setup on EUR yesterday, we have a new B down at 2944, with the A up at 3236.

FOR TODAY:

Price is in a narrow range since yesterday afternoon. We need a BF786 and a bullish cs formation for a long trade set up, or a bearish cs formation after price hits the 618/786.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

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 still don’t have a decent swing high, so a BF786 trade setup will probably not happen during the upcoming session. Will wait and see.

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

GBP/USD 14 DECEMBER 2011

GBP/USD

Sterling also gave us a bullish cs formation after a test yesterday, but that also failed with price taking out it’s a low, starting the reversal process on this timeframe. We now need the new B low to get taken out to confirm the downtrend in place.

FOR TODAY:

We will be looking for short trade set-ups higher up in the AB swing. This is a big AB swing we have on Sterling, with the A up at 5779.

SHORT: Will be going short only IF:

With the 618/786 being way up at 5653/5709 respectively, we are looking for past support to become future resistance at 5520/30, and the 382 at 5576, if we get a clear bearish cs formation at these levels we will look to go short.

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

LONG: Will be going long today only IF:

No clear swing highs in place at present, so probably no BF786 long setups in today’s session.

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

EUR/USD 14 DECEMBER 2011

EUR/USD

Price gave us a BF786 and a bullish cs formation yesterday, the trade lost 48 pips. Price then went on to take out the B low giving us a new AB downswing.

FOR TODAY:

We now have a downtrend in place, we should only sell rallies at the 618/786 after bearish cs formations. The new A is up at 326, with the B down at 3008.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

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 don’t have a swing high, so we will not have a BF786 set up in today's session.

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

GBP/USD 13 DECEMBER 2011

GBP/USD

Sterling fell to the A low but never broke the support, instead it bounced off the support giving us a bullish cs formation at the A low, this should be good for a rally to 5720.

FOR TODAY:

Today will be a DA ALOW trading day where we will be looking to buy dips to 5720. These will all be ST’s.

Only if price takes out the A low at 5525 then we will be reversing on this timeframe.

SHORT: Will be going short only IF:

We get to the 5734/69 highs and then get a bearish cs formation,  stop above the cs formation, max 1.5% risk, limit will be down at the A low at 5525.

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 dips and bullish cs formations, buy these until price reaches 5720.

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

EUR/USD 13 DECEMBER 2011

EUR/USD

Eur gave us the bullish cs formation we were looking for yesterday, but it failed and we lost 30 pips, price went on to take out the A lows doing a reversal on the 1h time frame.

FOR TODAY:

We now have a new B low down at 3160, we can only buy on a BF786 after a bullish cs formation, or sell up at the 618/786 of this huge AB swing.

SHORT: WILL ONLY BE GOING SHORT IF:

We rally to the 618/786 of this AB swing and then get a bearish cs formation. Stops above the cs formation, the 618 will be a 100 pip limit and the 786 will be a ST to the BF786.

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 test of the BF786 and thereafter we get a bullish cs formation. Trade this for 100 pips since it’s a shallow bounce. Stops below the cs formation.

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

GBP/USD 12 DECEMBER 2011

GBP/USD

Price rallied on Friday and gave us the bearish cs formation we were looking for, but once again the stop was too big to take the trade.

FOR TODAY:

Sterling seems stuck in a range roughly between the 86 of the upswing and the BF786, approx a 200 pip range. We need a break of either to give us clearer direction.

Today we look for a test of the bearish cs formation and expect price to continue the fall, else if we get a bullish cs formation we will trade long, this will tell us that support is holding.

Only if price takes out the A low at 5525 then we will be reversing on this time frame.

SHORT: Will be going short only IF:

We get to the 5734/69 highs and then get a bearish cs formation,  stop above the cs formation, max 1.5% risk, limit will be down at the A low at 5525.

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 inside Fridays lows, or lower down while inside the A low, this will qualify as a ST to the BF786, stop below the low, max 1.5% risk.

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

EUR/USD 12 DECEMBER 2011

EUR/USD

Eur gave us the bullish cs formation we were looking for on Friday, but this was a ST to the BF786, price fell back to our entry and we were stopped out at zero.

FOR TODAY:

Today will be a DA86 trading day where we again be looking to buy dips towards 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 3433/3458 highs, or higher up at the BF786 at 3490.  The limit for this entry will be at the A low since we had an 86 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 dip and a bullish cs formation, either at or inside Friday's lows, or lower down inside the A low. Trade this to the BF786. Stops below the low of the cs formation, max 1.5% risk.

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