GBP: Shooting Star to Favour a Bearish Correction?

Sunday, September 30, 2007

GBP: Shooting Star to Favour a Bearish Correction?

(DAILY CHART)

04-HOUR CHART

30-MINUTE CHART

(CLICK ON THE CHART TO ENLARGE IT)
Dailies are coming in a very strong bullish move. Last Friday Sep. 28th prices broke main bullish channel (purple line) but found resistance at the minor one (yellow line). Daily indicators still favour the long, specially the MACD crossing its bearish yellow trendline and RSI also crossing a bearish white trendline.
But the 04-hour and 30-minute chart show a Shooting Star at the top of a bullish channel (see purple lines on the respective charts...). I believe this calls for a bearish correction.
So points are:
SELL break 2.0463 (which is the close of July 17th, the Open of July 18th, and the high of Aug. 03rd and 06th) with stop at 5 pips above Sep 28th high at 2.0490 and targets 2.0420 and 2.0375 (23% and 38% fibo 2.0191 - 2.0490). Add lots break 2.0420 with target 2.0375.
If I´m wrong BUY break 2.0490 with 20-pip stop and target 2.0560

TRADING STYLE

Even though we are considered Day-Traders, our trading sometimes requires different styles, according to the patterns and/or how the market moves during our trading sessions. All strategies presented in all posts below are for Positioning but, depending on how markets behave, our style can change so that we can capture good trading opportunities......

Our Trading Styles are discriminated as below:

1) Scalping: Short-term trades, usually betwen 2 to 15 minutes, with stops lower than 8 pips, targeting 15 pips. Generally our Scalping trades apply very low stops (5 pips) aiming quick surges in prices of around 10 pips, in a matter of a very few minutes.................................................................................................
2) Day-Trading: this is our main Trading Style where we dedicate most of our time. Their lenght is usually betwen 10 to 60 minutes, sometimes for more than 2 hours, with stops between 10 and 20 pips and targets between 20 and 60 pips...
3) Positioning: Long-Term trades based on Daily and 4-Hour charts, with stops between 20 and 40 pips, targeting minimum 60 pips. Most of these trades have Open Limits......................................................

Money Management

This is a crucial aspect of our trading, considering the different styles we apply to our trading Sessions. As the Positioning Style requires larger stops (usually the double of our Day-Trading Style), their lot size is lower than usual, generally 50% of our standard lot size. As the Scalping style requires lower stops (usually half of our Day-Trading style), their lot size is usually 150% of our standard lot size. For instance: let´s suppose that our current standard lot size is 200K. For Scalping trades the lot size will be 300K and for Positioning it will be 100K...................................

Daily FOREX Analysis - Brasil

Sunday, September 30, 2007

GBP: Shooting Star to Favour a Bearish Correction?

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