gbp/usd update 6-10-08
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This post is a reprint of the email sent out yesterday, Mon, June 9, 2008 1:20 pm.
okay, on the gbp/usd 4hr we are closing with a bear pivot below friday's high, with the necessary higher volume.Now, what we must consider first is the intraday trend and that trend iscurrently up. so our bias must still be up based on the current chartpattern even though price is falling. Any healty move will pullback beforeattempting to continue unless it is news related and that is more emotionthan true move, the news that is.
The last bar reached the support bar which is bar 1. The low of bar z isthe pivot point and this is where we can enter short with a stop above thehigh of bar z and our target the low of bar combining our outside barguidelines with our footstep guidelines. To be safe I would take profitat the open price of bar 1 just to avoid potential operater intervention.
Also, even though the low of bar z is the pivot point i would enter at theclosing price of bar z because this would be a counter trend trade.Counter trend trades are always riskerier and we really should not betrading against the trend but if we're going to do it this is how you doit.
I would enter short at 9767 with a mental stop above 9800 and a target of9698. That's if I was going to execute a counter trend trade. Since it iscounter trend I would drop down to my 5 min when price reached my entryprice and only enter there if i get a 5 min confirming signal.
The really great signal for a short is a 4hr close below the low of bar 1because then there will be plenty of overhead resistance to knock priceback down if it should attempt to move back up.
The last bar reached the support bar which is bar 1. The low of bar z isthe pivot point and this is where we can enter short with a stop above thehigh of bar z and our target the low of bar combining our outside barguidelines with our footstep guidelines. To be safe I would take profitat the open price of bar 1 just to avoid potential operater intervention.
Also, even though the low of bar z is the pivot point i would enter at theclosing price of bar z because this would be a counter trend trade.Counter trend trades are always riskerier and we really should not betrading against the trend but if we're going to do it this is how you doit.
I would enter short at 9767 with a mental stop above 9800 and a target of9698. That's if I was going to execute a counter trend trade. Since it iscounter trend I would drop down to my 5 min when price reached my entryprice and only enter there if i get a 5 min confirming signal.
The really great signal for a short is a 4hr close below the low of bar 1because then there will be plenty of overhead resistance to knock priceback down if it should attempt to move back up.
cheers, jerry
2 comments:
Jerry great analysis! One question I do have is that different mt4 brokers have different timeframes for there charts. For example, my IBFX and FXDD have different candle closes. So the candle patterns are different. What is the broker you use for mt4 charting?
Hi Jordan
All of the data providers use differant time zones depending upon your address provided when you sign up. This is by design to keep traders from coordinating easily. For years traders have been complaining about this but of course the broker/operaters turn a deaf ear...after all, they planned it that way. The metatrader charts are based on gmt time but i live in est. I do this to keep it universal for all traders accross the globe.
Cheers Jordan, Jerry
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