Looking for the bottom of wave 4 Remo?

RMc

This looks like support is breaching. I could see this heading towards the main trend line in the next few days




dyor
remo

Appreciate your time jackozy

Hi Monkeyz,

Actually, I don't like trading breakouts at all if I can help it. I've been looking for an entry here though and my original order was placed at 1.6000 (the 61.8% retrace of the 1.5909 to 1.6143 rise) when I figured that 1.5909 was likely to be a wave 4 low. I think I posted this planned trade on this thread. Unfortunately I missed that entry by 0.0002 so the next option was to trade the breakout of the 1.6143 recent high on a 123-low trade so I guess you could say that this time I simply traded the break above 1.6143 rather than the trendline backtest.

Normally I prefer to buy supports, trendline supports and Fibs and to sell resistances, trendline resistances and Fib extensions.

Jackozy - do you always wait for a back test before entering or do you sometimes just buy the breakout?

Stop at 1.6110, min target 1.6309 so 35 pips downside (since I waited for a break of 1.6143 to confirm a higher high after a higher low) for a possible 164 pips gain.

It could go higher than that but 1.6309 is previous high so I will close there and look to re-enter on a retrace.

Thanks Jackozy,

What is your R/R for learning purposes.

Regards RMc

I'm long on this now on a back test of the trendline breakout:




dl.dropbox.com/u/20815047/USDGBPdaily01_11_12.gif

The retracement KIs way

screencast.com/t/TzVoAZWfMwYr

This suggests 15777 for the bottom of wave 4? Seems to be lots of support around this area.

Regards RMc (Fibbed out)

ahh, that makes sense to me now. Nice one.

Sorry, Amo, I didn't show the full count. Here it is:




dl.dropbox.com/u/20815047/USDGBPdaily31_10_12a.gif

All the Fib retracements and extensions are similar to the USDJPY described here: www.chartsview.co.uk/blog/ewt-and-fibs-usdjpy-live-example.html

That should read 'with' the waves. How is there a 3 and 4 wave twice on the left hand side?

Jackozy wrote:
Jackozy any chance you can explain how the wave count works on this one? I'm confused we're the waves from the left hand side. Thanks

yea remo I was a little eager to get in on the trade. my thinking was that 1.6100 may have provided some round number resistance so it may not have reached the trend line. something I need to work on ... being a little more patient and letting the trade come to me

hi noodles.
You had the right idea but i think you entered too early. That trend line is at 1.6121 so thats where you went wrong on that trade. If you then had the stop above 1.6145 then you could still be in the trade.




Good idea thou

remo

hmmm stopped out ... very quick 27 pip loss!

nearly at 16143 already

Morning KI,

Not yet, just watching. I'll go long on a break of 6143, the recent high as that will be a short term 123-low breakout and confirm the wave count

Jackozy wrote:
Morning jackozy. Are you trading this pair ?

RSI and wave count suggest this will break through resistance shortly: dl.dropbox.com/u/20815047/USDGBPdaily31_10_12.gif

noodles75 wrote:
And dont forget that the price is now pulled back to the 23.6.........or the 76.4 LOL !!!! KI.

nearly at downtrend line which has provided excellent resistance in past few weeks

i have sell order in for 16098 stop 16125

screencast.com/t/T7heNe2Gpt