GBP JPY 240 Min

 GBP JPY – ORDER CANCELLED

04/09/14 – GBP JPY – ORDER CANCELLED – This potential Long trade almost triggered and then dropped like a bomb after the unexpected rate drop by the Central European Bank and just goes to show not all great trade setups trigger.  The Wave 4 pull back broke some major Elliott wave rules and as you can see from my chart below my software has re-labelled this movement as a bearish trend, currently a wave 3.  My “With Trend” strategy rely’s on the wave 4 pull back to hold and keep within the rules for an Elliott wave movement and clearly in this case they have been broken so I have cancelled the Buy order for GBP JPY.  A wave 3 is very un-predictable to trade in either direction and so I would not even contemplate breaking my trade rules and consider entering a low probability short trade, as in this instance. There will most likely be no more potential Forex trades for me this week as I would need the volatility to settle down in the markets so that I can look for a strong setup. Chart as Below

gbp jpy

04/09/14 – GBP JPY – Potential Long trade on this currency pair on a 240 Min time frame, setting up with my Wave 5 trade “with trend” strategy, currently with 8/9 indicators in the green.  I have waited for the first bar that broke the Trend Channel to complete before deciding on an entry strategy, which will now be just above the high of this bar.  Stop Buy order for GBP JPY @ 172.77, which is out of the Trend Channel for this bar and above the high of the previous bar.  Stop Loss @ 172.29, which is below the Wave extreme low and just below the Fibonacci 0.382 line taken between Wave 2 and Wave 3.  Initial Take profit Limit order @ 174.26, giving a Risk to reward ratio for this potential Long trade on GBP JPY of 1:3.  Charts as Below

GBP JPY GBPJPY240#1 GBPJPY240#2

 

paul.bratby@hotmail.com'

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