Signal for 14/07/2009 for: GBP/USDRecap of yesterday’s session: We had a volatile start of the week with price losing and gaining 350 pips by market close. We had some good opportunity for a sell yesterday though price already reached our first profit target for the day. The other two profit targets were successfully met. There was a potential of at least 60 pips on the downside yesterday. I had a loss trading off the 5 mins chart where I got kicked out of the market. I commonly use a 60 pips stop loss but decided to use half that amount yesterday. My bad...the market did throw me out before heading in my original direction. Don’t you hate it when that happens? Well had a small loss of 30 pips and called it a night. Remember you will not win all the time with Forex, with my systems I win 80-85% of the time. The same secret of trading stocks applies to Forex: "Let your winners ride, and cut your losses short". Today's Signals: Ok lets have a look at today’s levels: R3-1.6507 Possible scenarios: Bias seems to be on the upside today but this may change later. No proper direction has yet been set by the market at the moment, hence the reason of a ranging market. We will wait for the London open to decide the next step to take. Buy Signal: For a buy signal to be triggered, I will expect the price to be trading above the pivot point by London open. We have some good support above the pivot point today making it a bit tricky to find the correct level to trigger a buy position. To be on the safe side, I will wait for price to retrace to 1.6230, where we have some good support before looking for a valid buy signal. My first target is set at 1.6312 where I will exit all my positions due to some heavy cluster formations around that level. I will start looking for another buy signal only if 1.6320 level is broken. If a valid signal presents itself, my profit target will be set at 1.6382 where I will exit my entire position. Note: A break of 1.6410 may be a good confirmation that market may want to head further up. Taking into consideration the average pips move being experienced in the past trading days, if this level is taken out in today’s session we may well see price head all the way to 1.6510. Please always remember, those are simply possible targets where price may head up due to heavy cluster formations and analysis. This is not 100% accurate, no system is. Take profit each time you reach a certain level and bring your stop to break even. Note: Wait for a retest with 20EMA, 50SMA all heading up. Make sure that the 200SMA is not in the way when price is heading up as this may act as a strong resistance. Sell Signal I won’t be putting any sell signals today as I feel market is strongly trending upwards. Remember that proper money management will be needed to maximize profit. Wait for retest of the levels given once broken or until a bullish candle is formed after the retrace (preferably on 15 mins chart, making sure that the 20EMA and 50SMA obeys the rule of entry) PS – You may decide to use your own strategy and use those levels as entry and exit points Happy Trading. Back to: Free Forex Signals Page Back to: Forex Trading Homepage
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