Day trading analysis - GBP/USD (08/12/2009)

A short term moving average touch setup. Price made a contact on the short term moving averages and then made a turn downwards. As a rule, such bearish setup can only be traded only if the price is below the 200MA and the daily pivot. Price was well below the 200MA and had also broken out of the daily pivot. Trade is entered at 16430 with the first profit target at the S1 level (16346). Second profit target is 16315 (100% Fibonacci level).

Day trading analysis - GBP/USD (07/12/2009)

A classic divergence trade. Countertrend trade. Divergence is very obvious and very importantly, divergence occured around the 138.20% Fibonacci extension level. Trade is entered at16328 with first profit target at 16400 and second target at 16492.

Day trading analysis - GBP/USD (04/12/2009)

The first trade of a new setup we've been working on for sometime. Here we use two short term moving averages to determine our entry into a trade. Ideally, price should touch the moving average before a trade can be placed. This is NOT a moving average crossover strategy. The daily pivot and the 200EMA also play an important role. That is, for all bullish trade, price MUST be above the daily pivot and the 200EMA before any moving average price touch will be considered a trade setup. Likewise for bearish setups, prices MUST be below the daily pivot and the 200EMA before any moving average will be considered a credible setup.

In this trade we were bearish and as we can see, price had broken out of the daily pivot and the 200EMA. Therefore price touching the short term MAs and then turning, presents a trade entry (16572) with the first profit target at 16481.

Day trading analysis - GBP/USD (03/12/2009)

After sometime off we are back. This trade happened on the 3rd of Dec 2009. Price broke out of the 100% Fibonacci level. We were actually expecting price to start experiencing resistance around the 123.6% Fibonacci extension level. However , the day's R1 level provided too much of a resistance for price. Price therefore reversed. Our repulse-zigzag indicator clearly showed a divergence from actual price movement. Trade is entered at 16702 with the first profit target at 16645 (200 EMA contact). Second profit target is pegged at 16577.