I closed out my long on this yesterday at the 161.8% extension for a wave 3 target. Managed to short it back down to the wave 1 high where I've just gone long again. Here's the hourly chart:



dl.dropbox.com/u/20815047/EURGBPhourly16_11_12.gif

So far it's played out perfectly and if it continues to do so my target for this will be the .8076 resistance.

Well, I'm still long from my trendline as this was also horizontal support,the 50% retracement level and RSI uptrend support and it looks like it's breaking out of that short term downtrend:



dl.dropbox.com/u/20815047/EURGBPdaily12_11_12.gif

The hourly also looks OK with an RSI downtrend breakout possibly occurring after the bullish divergence at that daily support:



dl.dropbox.com/u/20815047/EURGBPhourly12_11_12.gif

Im short on this and my stops are above 0.8031.
This is due to the back test of that trend line break area





dyor
remo

It's got the right setup for it on the hourly:



dl.dropbox.com/u/20815047/EURGBPhourly08_11_12.gif

Test of bullish RSI divergence right at the trendline. Should be OK IMHO. Timw will tell....

Jackozy wrote:
Ditto, looks like its struggling a bit and the DOW isn't helping things along! Got a tight stop at 0.7940 so don't stand to lose much.

My limit order got hit so yes, I'm long on it. Am I confident? Erm...no. Stops are in place and if they get hit well, that's trading for you!

You still going long on this one mate?

I know our charts disagreed (bizarrely) on where this uptrend support was, but I'm looking to go long for a short term trade at .7965 since there are 3 levels of support there.



dl.dropbox.com/u/20815047/EURGBPdaily07_11_12.gif

This is in a short term downtrend so this counter trend trade is risky.

perfect bounce of the trend line at 7985.

REMEMBER THAT THE TREND LINE LEVEL CHANGES DAILY


It should be a free bet now.
You should not really go long on a second attempt today as the area has already bounced off today.

DYOR
remo

mine are at 0.7753 and 0.7810 these are the lows of those days.
remo

What are the price points for your 2 trendline touches remo? Mine are 0.776 and 0.7809...if yours are the same then it must just be our drawing errors!

strange that.
whos got the right charts.....lol

soon find out if it does bounce from yours or mine....lol

Its a hard one as updata are pretty good.
so is Thomson Reuters...
The thing is all currency are free so everyone should have access to the same data.
Well i know its free from thomson reuters...
strange
remo

Wow - my trendline is more than 25 points away from yours remo!



dl.dropbox.com/u/20815047/EURGBPdaily01_11_12.gif

I'll also be going long there though as there's loads of support. 7965 is my mark which is wave 1 high and where the trendline (on my chart) wil be in a day or two. Luckily, I closed my previous long out at the resistance shown near 8074 yesterday.

Ive placed a order to go long at 7980 with a 15 point stoploss on first attempt only.
This is where the trend line is.

As you may have noticed I have been in and out of this quite a few times now . This is the realm of day trading. This is normal. You should be taking profits and closing them out quickly before profits go.
So far the last few trades have been very profitable.
As you should be able to tell theres no hindsite trading from me.
dyor

remo

ive also gone long from the trend line but this is after taking a hit from my earlier trade.
thats the thing with currency theres so many trading chances out there and it can take over.

remo

I'm long from the trendline: dl.dropbox.com/u/20815047/EURGBPdaily26_10_12.gif

Trading this short, entry 8017 sl 8034 target 7960 r/r just over 3/1 will lock in at b/e at 8005.

dl.dropbox.com/u/4899609/eurgbp25thoct.png

Ive closed my short on the eurgbp and now have reversed the trade. So now i am long from 8050
with my stops below 8019





dyor
remo

Good spot and nice call Rossy.

Jackozy - exactly what I look for also in my trades is that sort of RSI diverging set up and trendlines at or around important support/resistance levels - lovely charts.

Thanks again for the explanations. Makes your decisionaking easier to understand.
Gl with the long

RMc

Only on first attempt and only for today.
dyor
remo

dl.dropbox.com/u/4899609/eurgbp24thoct.png


Im going to close my short at 8054 just above the 8052 trend line test area.
then im going to go long with 40 point stop





dyor
remo

It was a good call, I took that trade.
yesterday when I checked I was in profit so I moved the stop to breakeven, now it looks very good.
I am just going to set a trailing stop on this one and see where it goes.
Thanks

The odds are in your favour when you short at a resistance level. Thats the key to beating the markets i think. Well it works for me. Thats the only way i trade.
With regards to why i placed the trade at 8160. I sought of thought where would all the stops be placed if i was shorting this from earlier. Then placed my Short from there. Lucky really.
Best place to have shorted this would be at the resistance at 8153 . I was being greedy so lucky really.

dyor
remo

Well done, Rossy

I had resistance at 0.8154 but there's "round number" trading at 8160 perhaps? I'm not really sure I follow your question since the bearish divergence occurred at the resistance level but in my experience, it sometimes pays to wait for a test of the RSI trendline formed by the divergence as shown here:

dl.dropbox.com/u/20815047/EURGBPdaily24_10_12.gif

It doesn't always happen and sometimes when it does it's only on an intra-candle basis so it appears later to have never touched.

It's a bit dangerous to simply trade divergences since they do often come in doubles or trebles. Best if you can find a divergence near an important support/resistance and then trade the actual S or R accordingly.

Thanks for the support on this trade guys. 8100 enough for me 3v1 etc.

Question please.
Whys was the trade initiated at 8160 when the RSI showed divergence at a lower price?

Regards RMc

Looks like a distinct possibility of this forming a bearish engulfing candle today too. Nice spot, Rossymc.

my short activated perfectly. now i have taken profits and moved my stop to break even.
Free trade. love it

yep it looks good for a short.
Im gonna place my order at 0.8160 with a 20 pip stop
dyor
remo

Short opp

RSI Divergence

Stop above 8157 (resistance from 11th June)
Target 50ma/uptrend line

screencast.com/t/UQHuRnse

Comments welcome RMc