GBP/USD: Retracement to 1.9970 After Target Hit of Diamond Bottom Formation at 2.0215 with a Shooting Star?

Sunday, March 9, 2008

GBP/USD: Retracement to 1.9970 After Target Hit of Diamond Bottom Formation at 2.0215 with a Shooting Star?

Daily Chart

04-Hour Chart

(CLICK ON THE CHART TO ENLARGE IT)
# Dailies show a beautiful Shooting Star on March 07th at exactly my target for the Diamond Bottom formation at 2.0215. Indicators are bullish but with the target hit and the shooting star I believe in a retracement to 1.9970.
# 04-Hour chart also favours this retracement with another beautiful Shooting Star on March 07th and all indicators favouring the short.
So my points are:
## SELL break 2.0100 with STOP 2.0130 and LIMIT 1.9971
## SELL failure central Pivot point 2.0144 March 10th with STOP 2.0170 and LIMIT 1.9971 (aggressive strategy)

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, March 9, 2008

GBP/USD: Retracement to 1.9970 After Target Hit of Diamond Bottom Formation at 2.0215 with a Shooting Star?

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