Some of my thoughts + Trading System

[llh]

Hi Elang:

I added and deleted ZigZag from my charts three times before coming to the conclusion that, for some reason, my computer's virtual memory was virtually sucked dry while the indicator was on the charts. It was like trying to trade while submerged in plasma. Of course that's just a guess, never actually traded in plasma. No idea why this happened, at first I thought the computer caught a big time bug or that InterBankFX was screwing things up from home base. I'm curious if anyone else experienced the same situation

I'm ZigZagless now

[elang]

Despite the news GBP found enough buying pressure to recover slightly and regain its intended retest for the highs.

MACD, STOCHS and RSI are all crying for a top and lingering around 9750 makes me think it might be around there.

This rally can continue in 3 ways i think.

1. The price rallies and breaks through 9750 directly.
2. The price bounced of 9750 and retraces to 38.2 or 9558
3. The price fails now and starts the decline

Take a look at the chart i have attached.

We will be looking to short the the price closes below the 5 MA (White) and MACD has a definate cross with RSI below 70 (At least)

Regards,
E. Lang

[elang]

You can short GBP/USD if the price on H4 closes below 5 MA (Linear Weighted).

Or

You can short now if you are more aggressive.

ENTRY: 9637
SL: 9690
Target(s): 9608 > 9558 > 9463

Price levels above 9680 will indicate a probable retest of the high.

I entered this trade based on a new system i read up on, if you are familiar with IC Wave Retracements, you will be familiar with this.

Check charts.

Regards,
E. Lang

[elang]

Originally Posted by elang

You can short GBP/USD if the price on H4 closes below 5 MA (Linear Weighted).

Or

You can short now if you are more aggressive.

ENTRY: 9637
SL: 9690
Target(s): 9608 > 9558 > 9463

Price levels above 9680 will indicate a probable retest of the high.

I entered this trade based on a new system i read up on, if you are familiar with IC Wave Retracements, you will be familiar with this.

Check charts.

Regards,
E. Lang

I closed my IC Wave Retracement short at .9639 with a loss of 2 pips.

I felt it was better to play by the rules and look for a long since RSI on the Daily chart was over 50, so i caught the next indication for a long at .9639, based on the Active Wave shown on the attached chart.

All in all... yesterday i said there where three things possible.

"This rally can continue in 3 ways i think.

1. The price rallies and breaks through 9750 directly.
2. The price bounced of 9750 and retraces to 38.2 or 9558
3. The price fails now and starts the decline"

The price didn't retrace to 38.2 but it retraced to 25.0, so it was just looking for a small breather before the final attempts at 9750

I believe we will have our go at 9750 today.

The outcome is a break over or a bounce back down.

Thats pretty much it.

Please take a look at the attached chart.

The reason i went long was because at least one (1) whole candle had closed above the 75.0%

I will keep on redrawing the fibonaccis at every available new wave with at least 40 pips in length, to determine whether we should continue holding the trade or when we should exit.

This system is pretty interesting, so lets see how things go.

Regards,
E. Lang

[elang]

GBP/USD Trade #1

CHART 1

Active Wave 1

We are 24+ pips up on long from .9639

The trade was entered because we had a whole candle close above 75% of the most recent retracement of an at least 40 pip wave.

Untill we have a new correction take place so we can redraw our Fibonaccis, we will hold this trade long.

Regards,
E. Lang

[elang]

GBP/USD Trade #1

CHART 2

Active Wave 2

We have determined that a new wave is active by noticing a correction taking place.

We signify the new active wave and redraw our fibonnaccis.
We desrgard the previous AW 1 fibonacci levels.

Criteria to hold the long trade: Resumption of the uptrend
Criteria to exit the long trade: At least one whole candle closes under 75.0% of the newly drawn active wave Fibonacci level.

Regards,
E. Lang

PS: Not that i wanna scare you or anything but you should know whats up:
Easy-Forex: The Financial Calendar

[elang]

GBP/USD Trade #1

CHART 3

Active Wave 3

We have determined that a new wave is active by noticing a correction taking place.

NEW W40 LOW @ 9637
NEW W40 HIGH @ 9676

I will call these waves W40 from now on since we need at least 40 pips and a visible correction to identify a new wave.

In a successful trade my chart may look like. W40.1 > W40.2 > W40.3 etc. untill the trade is terminated.

- We redraw our fibonnaccis.
- We desregard the previous W40.2 fibonacci levels.

Criteria to hold the long trade: Resumption of the uptrend
Criteria to exit the long trade: At least one whole candle closes under 75.0% of the newly drawn active wave Fibonacci level.

NEWS UPDATE:


US Dec PPI is 0.9% vs. exp. 0.5% and prior 2.0%; core PPI is 0.2% vs. exp. 0.1% and prior 1.3

Slightly higher than expected PPI gives the dollar a small boost, but US Treasuries are not reacting in a significant way, up only 0.8 bps at 4.755% in 10 years

Regards,
E. Lang

[elang]

GBP/USD Trade #1

CHART 4

Active Wave 4

We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)

- We redraw our fibonnaccis levels*
- We disregard the previous W40.3 fibonacci levels*

NEW W40 LOW: 9642
NEW W40 HIGH: 9689

OUR BIAS: No one "whole" candle has closed under 75.0% Fibonnacci Level of the newly drawn W40 (40 Pip Wave) so we hold Long.

I've taken the liberty of moving my STOP LOSS 10 pips behind my entry now: ENTRY: 9639 SL: 9629

Regards,
E. Lang

[elang]

GBP/USD Trade #1

CHART 5

Active Wave 5

We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)

- We redraw our fibonnaccis levels*
- We disregard the previous W40.4 fibonacci levels*

NEW W40 LOW: 9650
NEW W40 HIGH: 9697

OUR BIAS: No one "whole" candle has closed under 75.0% Fibonnacci Level of the newly drawn W40 (40 Pip Wave) so we hold Long, until a whole candle closes below.

I've taken the liberty of moving my STOP LOSS to Break Even at 9639:

Regards,
E. Lang

PS: I AM OFF FOR TODAY GUYS. MORE TOMORROW!

[elang]

GBP/USD Trade #1

CHART 6

Active Wave 6

We determine that a new wave is active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)

- We redraw our fibonnaccis levels*
- We disregard the previous W40.5 fibonacci levels*

NEW W40 LOW: 9672
NEW W40 HIGH: 9716

OUR BIAS: No one "whole" candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.6 (40 Pip Wave) so we hold Long, until a whole candle closes below.

I've taken the liberty of moving my STOP LOSS to Break Even at 9639 entered off a "whole" candle close above 25% of AW 1 or W 40.1

Regards,
E. Lang