[fractal]

Hi dlynch82,

You posted in my thread while I was coincidentally posting in yours at the same time...

The main thing I have observed about trading is to try to not get into the price action when it is in the middle of a range. I like the "edges" much better. That statement is not easily translated into a rule, I realize, but if a person trades a while, they kind of get what it means.

I like Prechter's analogy best about trading "rules". Sometimes the best course of action is to break a rule. In my opinion, the only "rules" a person should have are 1) trade with a stop 2) don't move stop against the trade if in a losing position 3) don't risk too much on any one trade; 4) understand and actively manage your emotions. Beyond that, it's all setups and probabilities, and Elliott Wave is no different than any other method in that respect.

So my strategies right now on GBP are to wait for some more price action before taking action.

1. If there is more selling, I will look to see if support is found near the recent lows (deep pullback to .618 or .764), or just below (1.236 or 1.327). If so, I'll WAIT for the price to cross the 20 SMA again going up on the 60 min chart to consider buying.

2. If there is more buying, I will look to see if resistance is found near the recent highs - again a deep pullback between .618 and .764. If so, I will WAIT until the price crosses the 20 SMA on the 60 min chart to consider selling. This is my preferred strategy, because if this happens, there may be a downward 1-2, 1-2, 1-2 in place. The "third of a third" wave is swift and powerful, and I'll want in on that.

The current support is at C=A for the last 3-wave down-move, and at Fib =.382 on the daily chart. So, there is potential for a rally, i.e., a setup for Strategy #2. I'll post some cleaner charts next week if a good setup happens.

As you say, more price action is needed before new setups really starts to form.