Charting the Entry on the Five Minute on Today’s GBP/USD pt. 3

I had posted this set up at my personal blog over at and I wanted to walk you all through the set up and the details of the trade.

We begin with a mark down or downtrending cycle as the Wave shows that the angle is a 4 to 6 o’clock.

11-11-2009 6-28-13 PM.gif

The entry sets up at or “between the greens”.

11-11-2009 6-28-21 PM.gif

This area shows the entry at the lower line of the entry area, the light green line is the 13ema on the close. The dark green is the 21 ema on the close.

11-11-2009 6-29-22 PM.gif

The “warning track” is the 34ema on the high (light red) and the dark red is the 55ema on the close. Once prices break the dark red plus three to five pips, you’re out.

11-11-2009 6-29-45 PM.gif

11-11-2009 6-37-30 PM.gif

I’ll talk about profit target in the next update but suffice to say that psych levels, Fibo Retracements or Extension, even pivots would work. You’re simply looking for support levels that could lead to a significant bounce and step out in front of those.

By the way, you can read part one and part two if you would like to review what I’ve covered so far…


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