Forex

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

2009-12-08T01:27:00.000-08:00

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)

2009-12-07T08:31:00.000-08:00

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)

2009-12-07T08:22:00.000-08:00

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)

2009-12-07T08:15:00.000-08:00

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.

Reflections (Trading intertwined with faith)

2009-11-17T04:42:00.000-08:00

Ezekiel 28: 5 (Trading skills and Pride)

By your trading skills, you have increased your wealth and because of your wealth, your heart has grown proud.

Romans 12:3 (Humility)

For by the grace given me, I say to everyone of you: do not think of yourself more highly than you ought, but rather think of yourself with sober judgment, in accordance with the measure of faith God has given you.

Galatians 5: 22-23 (Patience and Self-control)

But the fruit of the spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness and self-control. Against such things there is no law.

Day trading analysis - GBP/USD (13/11/2009)

2009-11-16T10:40:00.000-08:00

Another divergence trade on friday. This divergence is confirmed by price resistance at the 200% Fibonacci extension level. Trade is entered on the turn of the zigzag on repulse (at 1.6683) with first profit target at the day's R1 level (1.6636) and second profit target at day's pivot (1.6577). As seen most of the time, trade couldn't make it to the second target level. But with good trade management, a 53points first profit target is substantial enough to make a lot from this trade.

Day trading analysis - GBP/USD (12/11/2009)

2009-11-13T00:40:00.000-08:00

Thursday trade. A very obvious divergence of price action from repulse-zigzag indicator. More importantly, divergence occured on the 100% fibonacci level. Price support also hovering around wednesday's R2 level. Trade entered at 16542 with first profit target when price touches the 200MA (16589) and second target at 16639 (thursday's pivot level)

Day trading analysis - GBP/USD (10/11/2009)

2009-11-10T12:01:00.000-08:00

We became uptrend biase when prices started making higher highs and higher lows as shown by the zigzag on price. There is then a very strong support on a Fibonacci confluence level, which also converges with the S1 level of the day. Trade is entered on the turn of the repulse-zigzag indicator at 1.6676 with first profit target at 1.6724 and second target at 16746(day's pivot level)

Day trading analysis - GBP/USD (06/11/2009)

2009-11-10T05:54:00.000-08:00

Another good divergence trade. Price meets resistance at the 100% fibonacci level. Repulse-zigzag indicator is showing a strong divergence from price action. We enter trade at 1.6603 with first profit target at 16559. And second target at 1.6500. As it happens some of the time, price could hit the second target.

Day trading analysis 2 - GBP/USD (05/11/2009)

2009-11-05T16:24:00.000-08:00

A bullish continuation trade. This is confirmed by the price support seen around the fibonacci confluence levels (1.6548-1.6550). We entered trade on the turn of the repulse-zigzag indicator at 1.6582. We played cautious in this trade as we were slightly concerned about the strength of the uptrend after UK interest rate announcement pushed the price to new highs of 16637. Our risk-reward ratio was therefore 1:1 (30 points potential profit, 30 points potential loss). We took profit at 16612.

Day trading analysis 1 - GBP/USD (05/11/2009)

2009-11-05T16:15:00.000-08:00

An interesting trade for the aggressive trader. A perfectly formed divergence of price action from repulse-zigzag action. This is also confirmed by the strong price support seen around the Fibonacci confluence level.
We must admit we didnt take this trade since ideally, we prefer our uptrend continuation trades to be above the 200 exponential moving average and the daily pivot level. This trade didnt meet this criteria but as we can see, it was an excellent move.

Day trading analysis - GBP/USD (04/11/2009)

2009-11-04T17:17:00.000-08:00

Countertrend trade. Price action divergence from repulse-zigzag action. Price divergence also occuring on the 100% Fibonacci level. Price has also atleast made contact (broken thru this time) with the R1 level for the day. Sell Price entry at 1.6572.5 with first profit target at 16521. Second profit target at 1.6439

Day trading analysis - GBP/USD (03/11/2009)

2009-11-04T02:57:00.000-08:00

A countertrend trade. Price action on the 100% fibonacci retracement level diverges from repulse-zigzag action. Entry price at 16303. First profit target at 16333. Second profit target at the R1 level (16476)

Confirming action
1. Price action on the 100% fibonacci retracement level diverges from repulse-zigzag action.
2. Downtrend price movement touched at least the S1 level to give any countertrend trade some credibility.

Day trading analysis - GBP/USD (02/11/2009)

2009-11-02T08:44:00.000-08:00

Drawn all possible Fibonacci levels using the zigzag (40) on price as a guiding tool in defining various important highs and lows.
Strong Fibonacci confluence can be seen around the 1.6481-16486 level. This price zone becomes a strong price resistance for the day.
Price stalls at 16479 and eventually turns. Trade is entered on the turn of the repulse-zigzag indicator. Main profit target is 16400. Second profit target is 16345
Other confirming actions for a bearish trade position are
1. trade entry is below the 200EMA
2. trade entry is below sunday's pivot level.

REO HUNTERS SHORT TERM TRADING SYSTEM FRAMEWORK

2009-11-02T08:35:00.000-08:00

System intends to use the fibonacci retracement tool, moving averages combination, repulse-zigzag combo indicator and the daily pivot level, to identify recurring patterns in the foreign exchange market.