Powerful Fib Based System - by DAZfx

This candle closes in 20 minutes and unless something changes, it looks like a valid entry to me.

Pipsy,

We are in together.

Lets ride the waves and collect them pips.

Also check out AUDUSD.

checking it out, just waiting for that confirmation

are you in on the usdjpy h1 setup

already taken profit at fe50

waiting to get the rest just now

Nope, I am watching only H4, don't have much time for lower timeframes. Good luck.

@ hutchy, where do u place ur stop in UJ H1? im stopped out already.

@Pipsy108, the r:r in GJ is much better as in EJ. im thinking about to close my EJ and move to GJ, but GJ is more volatile and could easily stopped out in few minutes by FOMC.

I think you can also pick AUDUSD as r:r is about the same as on GBPJPY, it's less volatile a most likely to move in the same way as GBPJPY or EURJPY. And there is still time to catch the train.

we had the same idea

Glad to see you catched it It's moooving right now.

i closed out EJ here BE, because the r:r is near 1:1 and thats much to less. i hope for all of you that it goes down anyway

audusd is my r:r 4:1 and still open. stop or profit we will see soon.

sorry, i was stopped out in this trade by the news announcement.

but currently in the ej, au & gj trades


good luck

Up or down? I have no idea what the direction of EURUSD may be. I think I will skip this one even if it turns into valid daz setup.

@pipsy im agree with you in EU

my limit sell has triggered in GJ, now i have a good r:r in an possible downmove.

Hey thanks for your neat tutorial.

I also use fib as one of my confirmation tool.

Good morning traders. There is very interesting commentary on Billy Ray Valentine's blog on interventions of european central banks to "protect" european currencies from drop against dollar. You could have seen one of these interventions yesterday on CHF, but EUR and GBP are affected too.

You can read it here: http://www.nobrainertrades.com/2009/...hort-term.html

The point is, we can expect more ranging with no clear directions in comming days, instead of real correction. So don't forget to thank your central banker for this.

Billy Ray Valentine is former institutional trader and has his own thread here at FF. Everything you wanted to know about supports and resistances bundled with insider informations:

http://www.forexfactory.com/showthread.php?t=86429

I am still in AUDUSD and GBPJPY trades. First one looks good so far. the second one not so good, but unless is makes hourly close above 78.6, I will be holding onto it, as GBPUSD is heading towards down side of it's range.

There may be daz setup developing on EURGBP, but I am already short since it bounced from 0.8600, first profit target reached and stops at BE. Also short GBPUSD based on PA after the bounce from upper side of it's range.

Good trading.

Hi there Pipsy,

Are you still in the trades for EJ & AU from alst night?

Do you think they will still come down to the predicted fibo levels we posted last night?

Because there are no new trades to enter into, I will post few graphs and what I see regarding trend directions, because this method relies on them.

First is USD index against other major currencies. First on a weekly graph we can see five weeks long consolidation. On a daily we see that during these five weeks USD has been trading in upwards pointing triangle with no clean break through upper side. On H4 there was false break through lower trendline, but the price is now back in triangle. With S&P and other indexes dropping we should have expected strong dollar, so this long consolidation is likely effect of the interventions mentioned in previous post. I would expect more of this in comming days, maybe weeks. To get clear direction on USD we would need S&P going up (USD down), or central bankers to be overpowered by markets (USD up) - likely not gonna happen, as these people have quite a lot of money to pursue in their "interventions". Especially Brits tends to keep their currency strong at all costs, even if it kills British economy.

This makes trading USD crosses hard on longer timeframes, because they are in consolidation too. I always look at where USDLFX is headed intraday, and try to trade it against currency heading opposite side intraday, if there is good setup. Safest approach is to watch this situation from the sidelines and enter only into A trades.

Hi hutchy, I am still in GJ and AU, never was in EJ, because this setup was not very clear to me, and it correlates with GJ anyway. Well, I still have some hope, I guess we will know after second H4 candle close from now. I think there was nothing wrong with these setups, it's just that we are trading within the range, so not everything may go as expected. In trend it's always easy. I am sitting on my hands right now and resisting temptation to intervene I am still only few months in trading, so I am learning to handle these ranges gracefully. Hopefully I will not pay to much money for this training.

On weekly EURUSD graph we see the same situation as on USDLFX. Candles with long wicks and small bodies show strong balance (and battle) between bulls and bears. Again short term bias is towards down side, as we would expect with S&P going down, but it get always rejected, again subject of aforementioned interventions.

On a daily graph the price has broken through upper trendline, but I would not take it as a sign resuming trend, perhaps just a little broader range.

GBP index is the worst. The consolidation is shorter, starting with imperfect hanging man last week on weekly, and as you can see on daily, it's trading in narrow range near the top. As a result of this GBPUSD is trading in very narrow range, but if you are adventurous enough, you can take bounces from the upper side on H4 time frame.