GBPUSD Long

GBPUSD, Time Frame - H1

Trade Direction : Long
Entry Point: 1.5706
Stop Loss: 1.5667
Profit Target: 1.5940
Trade Explanation: On a long rage trade (H4 & D1) the pair has completed a cycle of wave 1 and is on wave 2 correction and exhibits a bullish trend with RSI diverging at 61.8% fib expansions, on H1 time-frame the pair is on a ABC correction wave with previous wave retracing upto 38.2% correction.

Chart -


So your saying this was wave 2? I’d like to know how we ascertain the confirmation of wave 3… and where I can get elliot wave info on points I’m not clear on like this question here. I understand the basics but this is new to me… now I can only try to guess looking for a previous wave 3 beforehand.

  1. So your saying this was wave 2? - [B]Yes[/B]

  2. I’d like to know how we ascertain the confirmation of wave 3 - [B]My approach more or less begins from determining the stronger trend by studying the higher time frames and chasing them down all the way to M30 (in this case D1 & H4 agrees on a corrective move and I just had to find out till what extent they could correct, then using H1 & M30 I pick an entry) using RSI & Fib value S&R play outs. Once I have the trend confirmation I then assign values of entry points using 61.8 & 38.2 fib S&R’s as recommended by wave theory in conjunction to RSI Divergences ( again this is high possibility trading not precision trading, if the wave 3 move fails I cut losses with predetermined SL’s and hunt for the next move ) [/B]

  3. where I can get elliot wave info on points - [B]I recommend you study work of Robert R. Prechter Jr.[/B]

  4. I can only try to guess looking for a previous wave 3 beforehand - It’s purely observational skills, in time you will stop guessing and start interpreting moves more accurately; just keep practicing. here’s my recent before after for the same pair.

Before - http://goo.gl/wQOPvJ
After - http://goo.gl/mvBWFd