Signal for 6/07/2009 for: GBP/USDRecap of last week's events: Last week's total profit (or loss): Profit: 143 pips We had a good end of the week where the first profit target was successfully met. Today, we have a lot of heavy cluster formations both above and below pivot point. It may be quite a tricky day. We will just have to wait for the London open once again and trade accordingly. Today's Signals: Ok lets have a look at today’s levels: R3-1.6474
Possible scenarios:
Buy Signal: For a buy signals to be triggered, I will wait for the price to trade above pivot point by London open. As said, there are some heavy cluster formations above the pivot point today making our trading decision quite tricky, so we will need to be careful before entering a trade. I will start looking for a valid entry if price trades above pivot point and the 1.6365 level. If all the conditions are met for a buy, my first target is set at 1.6408. I will exit half of my position at this level and let the rest run to 1.6450, which I believe may be a second profit target. Please always remember, those are simply possible target 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. OR : You may use your own strategy and use those levels as reference to enter and exit trades Sell Signal:
If by London open, price is trading below pivot point and 1.6310, which is acting as strong resistance level, there may be a good opportunity for a sell signal. I will start looking for a good entry point with first profit target set at 1.6280. I will exit all my position at this point as I feel price may reverse strongly at this level if buyers start entering the market. If this level is broken, then we may have some fairly good confirmation of a move downwards. Thus my next target is set at 1.6230. I have a final target set at 1.6131. I believe that if price is strong to the downside, then this level may be reached. We may still encounter some strong support around the 1.6194 regions on the move down. 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
|
