19/02/14 – The price action has been negative at the beginning of the US session and the Elliott Oscillator has gone beyond the 140% line as shown in the chart below and therefore is now a Low probability trade for me , so I have cancelled the BUY order.  As Below


08/02/14 – This trade is setting up well and is a classic W4 pullback with the W4 extreme between the 0.25 and 0.382 Fib lines after a strong Bullish Trend.  I have drawn a dark blue trend line from W2 all the way through four pull back pivots along the bullish rend.  This is a strong line of resistance and is now at the W4 extreme and give me confidence that we are at the W4 extreme and the price should continue now on a W5.  But the markets are volatile at the moment so time will tell.  I want to enter the trades aggressively out of the Trend Channel next week so have placed the BUY order @ 5620 on a JUN14 Spread Bet Contract (remembering it is a Weekly chart and has a way to go and will take time).  The Stop Loss is @ 5070 and the Take profit Limit Order @ 7400.  The Risk to reward is around the 3% potential profit mark so a good trade, but those with an account balance less than 16,000 would not get the Stop loss at the 1% of account balance figure (integral to my trade strategy) due to the large price difference between Entry and Stop Loss – Rewards are fantastic though if the trade comes off.  As Below

LB#3 LB#1 LB#2osc'

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