GDP/USD

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)

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




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

Thanks Jackozy,

What is your R/R for learning purposes.

Regards RMc

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.

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

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.