Buy My IOU – Sell Your Government IOU For CASH

Lets start with one of the trades we were following since yesterday’s recap – the GBP/CHF on 30 min timeframe. The trigger was a Bearish Divergence. Price made higher highs, while stochastics were giving lower highs. We consider this an aggressive “Class A” divergence. The entry for this trade was determined by certain Fibonacci Retracements, and price did go down beyond our target of 2.3940. We also use the Andrew’s Pitchfork in different ways to confirm the entry. In this case, the price broke through the midline of the APF, and came back to retest it as a resistance. This is another strong confirmation that a downtrend is in progress. In our room we do like to twist around the technical tools available to give us better results. Lets go over an intraday trade we ended up taking today. The GBP/JPY, one of the most popular pairs in our room, had a Long trade, though the extent was not too large. As I always say, its the technique and methodology which is always more important than the result. Initially a bullish 1-2-3 Formation gave us a trigger for the Long trade. We like to use use Fibonacci Expansions for 1-2-3 Formations. On a long term basis, we had some bearish bias on this pair, so we really were not sure how long this bullish move would go. To stay on the safe side, we generally keep a trigger – the FE level of 78 became the trigger. The break of this level became our entry, and FE 127 was our targets. There was one more thing that made us stop our trade. We …