Some of my thoughts + Trading System

[elang]

GBP/USD Trade #1

CHART 7

Active Wave 7

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 W40.6 fibonacci levels*

NEW W40 LOW: 9691
NEW W40 HIGH: 9741

OUR BIAS: No one "whole" candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.7 (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

[elang]

GBP/USD DAILY REPORT

Daily Pivots: (S1) 1.9625; (P) 1.9673; (R1) 1.9744;

Cable's rise from 1.9261 resumes and strengthens to as high as 1.9742 so far. At this point, further rally is expected to follow towards 1.9750 resistance. As discussed before, break of 1.9750 will encourage further rise towards 1.9846 high.

On the downside, below 1.9675 will argue that a short term top is formed, probably with bearish divergence condition in 4 hours MACD too. Focus will then shift to 1.9587 support. Touching of 1.9587 will confirm that a short term top is formed and should bring lengthier consolidation. But even in such case, downside is expected to be above 1.9452 resistance turned support and bring rally resumption.

In the bigger picture, correction from 1.9846 has completed after three waves down to 1.9261. Break of 1.9846 high will confirm that rally from 1.8517 has resumed for next upside target of 138.2% projection of 1.8090 to 1.9142 from 1.8517 at 1.9917. However, close attention will be paid to sign of loss of upside momentum and reversal pattern formation as cable approaches key cluster resistance of 2.0106 (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067).

On the downside, it will take a break below 1.9452 support will argue that the whole rise from 1.9261 has completed and shift short term focus back to the downside.

[elang]

GBP/USD Trade #1

CHART 8

Active Wave 8:
L: 9691 H: 9777

ENTRY: 1.9639
SL: 1.9639
CURRENT PROFIT: +130

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 W40.7 fibonacci levels*

NEW W40 LOW: 9691
NEW W40 HIGH: 9777

OUR BIAS: No one "whole" candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.8 (40 Pip Wave) so we hold Long, until a whole candle closes below.

Regards,
E. Lang

[elang]

GBP/USD Trade #1

CHART 8

Active Wave 8:
L: 9691 H: 9777

ENTRY: 1.9639
SL: 1.9639

EXIT: 1.9719 / CLOSING PROFIT: +175

We determine that: One "whole" candle has closed under 75.0% Fibonnacci Level of the newly drawn W40.8 (40 Pip Wave) so we terminate our Long.

Closing Profit +175 pips

Regards,
E. Lang

[elang]

GBP/USD Trade #2

CHART 1

ENTRY: 1.9714
SL: Floating

Having exited our long position we are automatically given signals for a short entry since there is a whole candle close below 75%.

We Short and wait for a correction in order to draw our new active W40 wave.

A new wave is determined and active by noticing a correction of a valid W40.
(At Least 40 Pips prior to the correction)

Regards,
E. Lang

[elang]

GBP/USD Trade #2

CHART 1

Active Wave 1:
L: 9703 H: 9777

ENTRY: 1.9714
SL: Currently Floating
CURRENT PROFIT: 0

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 W40.8 fibonacci levels*

OUR BIAS: No one "whole" candle has closed over 75.0% Fibonnacci Level of the newly drawn W40.1 (40 Pip Wave) so we hold Short, until a whole candle closes over.

Please look at the acompanying Head and Shoulder chart as well.

This is a very valid possibility considering that we got rejected by 9750.
We may well have a top here.

Regards,
E. Lang

[elang]

Hey Guys and Girls

Don't forget that if you like what you see in my posts and you want to see more ... you can help me get pumped and enthused for the next post by kindly rewarding my modest donations with the thanks they deserve by giving me a few Reputation Points!

Gotta move up you know

Much Appreciated.

Regards,
E. Lang

PS: Today we've made 175 Pips (Closed Trade) and Currently Floating with a short at 25+

[pwegner]

You are doing a great job Elang and I am learning a lot from you. Thanks so much for sharing your time and insights.

[ramrocket]

Originally Posted by elang

you can help me get pumped and enthused for the next post by kindly rewarding my modest donations with the thanks they deserve by giving me a few Reputation Points!

Gotta move up you know

Ya man - would gladly vote for you.

Question:
Is the magic number 75% coming from both direction (long or short)? I thought it was 25% from a long retrace and 75% on a short retrace.

[elang]

Hello Ram,

Hope all is well.

It is rather relative, depending on your current bias, what position you have floating.

It is generally 75 to terminate the position and 25 to enter.

EG: If you draw a bullish wave and you don't have a floating position, you could short when a whole candle closed below 75.

So as you can see in this case you would use 75 for a short entry.

Vice Versa for Bearish W40 waves.

Dear Pwegner:

Thank you very much for your kind words! I hope you learn things here that help out with your trading!
And when you get good share everything you know, because there is enough bread for everyone.

We tend to sometimes underestimate that even the simplest of words we say in a place like BabyPips can be the key to unlocking someones padlock of Trading Faults and Dilemmas.

So, share, teach and give thanks

Regards,
E. Lang