TraderSQUAD
Long

GBPUSD Bullish (Elliott Wave Buy)

FX:GBPUSD   British Pound/U.S. Dollar
2 months ago
Buy Sterling with a Take Profit target in the Brexit ICT Liquidity Zone

Entries
- Buy 1.3260 and TP 1.3600 (Reward:Risk of 2.38:1)
- Buy 1.3255 and TP 1.3600 (Reward:Risk of 3.2:1)

Intermediate targets would be 1.3345 and 1.3410

Look to phase in a 3x reversal below 1.3115

Rationale;
1. Elliott wave setup as per chart
2. Support/Resistance Flip ties in nicely with a 76% retracement of XC
3. RSI and MACD while negative point towards further falls (into 1.3150)
4. GBP sentiment has been negative post Brexit so highly likely there are Buys Stop orders above 1.3450 which may come into play in coming sessions
2 months ago
Comment: Typo Correction.

Entries are;
- Buy 1.3260 and TP 1.3600 (Reward:Risk of 2.38:1)
- Buy 1.3225 and TP 1.3600 (Reward:Risk of 3.2:1)
2 months ago
Comment: 1.3346 achieved at yesterday's London Close

Trailing Stop Loss Moved to Break Even

Cable currently trades 1.3290
There are bids in the 1.3290-3270 zone. Should these fail we likely see a move down to 1.3220 area
2 months ago
Trade closed manually: Trade closed at break-even (1.3260)
2 months ago
Trade active: 1.3150 not broken. I still like this setup.

Buy 1/2 position at 1.3175

TP1 1.3250
TP2 1.3600

3x reversal below 1.3115
2 months ago
Comment: 1.3140 holds (for now at least). Its the lower level of my Support/Resistance flip.

My understanding of Elliott Wave theory is that the low of the 4th wave cannot violate the high of the 1st wave. With experience I have modified the rule to consider the high-low range of the bar that forms the high of the 1st wave.
2 months ago
Trade closed manually: TP1 of 1.3250 hit

1/2 of position closed
2 months ago
Trade closed: target reached: 1/4 position Buy@1.3175 and TP at 1.3250 = +18.8pips

1/4 position Buy@1.3175 and Stop Loss @ 1.2985 = -47.5pips
3/4 reversal Sell@1.3150 and TP @ 1.2985 = +123pips

Total +18pips-47.7pips+123pips = 93pips
HenrikKonnerup
2 months ago
Newbee Elliot Wave question. I see that the wave 4 goes just lower than wave 1, just slightly. But I've read that it must NEVER go lower than one, to be an Elliot Wave. How do you look at this?
Otherwise it looks like a beautifull Elliot Wave :-)
Reply
TraderSQUAD PRO HenrikKonnerup
2 months ago
Hi Henrik you are correct. From personal experience I have found that there are times the 4th wave can extend into the zone/horizontal shadow cast by the candle of the high of the 1st wave.

Similarly, the textbook 2nd wave retracement should be 76% but here are times when apparently this is not the case.

I would advise sticking to the textbook rules as much as possible and with time you will recognise when to bend them a little :-)
Reply
HenrikKonnerup TraderSQUAD
2 months ago
Thanks, I'm new to Elliot Waves, but find them very interesting!
Reply
TraderSQUAD PRO HenrikKonnerup
2 months ago
I don't live or die by them, but as a guide they are a step up from simple ABCDs which gives the impression C-Ds can occur in perpetuity (or as FX educators say, "till the trend ends"

Elliot Waves x-1-2-3- 4- 5
ABCD pattern A-B-C-D-C2-D2

If you look at it that way Elliot Waves imply that if you are buying C's and selling Ds that will likely only happen twice in a typical higher timeframe swing (H4,D and maybe Weekly timefame)
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