Sep 042011
 

The Pound has finished a five wave move from 1.4235 to 1.6720. Hence, we will be looking for a correction that is bigger than either of the two corrections seen during the 5 wave upmove. All corrections tend to be in sets of three waves (or their combinations)

As wave A came down in 3 waves, it was reasonable to expect the B wave to go back to the start of Wave A (as a flat correction). I went overboard and suggested we might even look for a new high! That is not happening. For nearly 3 weeks, the Pound has been confined to a 400-point range. There is a growing feeling that we might get a sudden dip, just as demonstrated in Fig 12a in the Book.
But let us see waht happens around 1.6100 to determine if we are indeed already in the C wave. Don’t worry about the missed opportunities! We only want to get involved in low-risk trades.

  3 Responses to “GBPUSD update”

  1. Hi Ramki,

    I feel only first leg(a) of B is finished. It has retraced 61.8% of A, but the time spent in the B? wave looks smaller compared to A wave down. Does B wave necessarily have to be longer in terms of time?. Pls comment.

    Thanks,

    Pasupathi

    • Pasupathi, All of wave analysis will finally come down to judgement calls. Being faithful to your own count will allow you to change tracks as it becomes necessary. What I have taught in the book is how to read the charts. Your reading may be different from someone else’s, but it doesn’t matter. Bith of you can make (or lose) money. But the person who remains faithful to his count will win more, and lose less.

  2. Sir, You have given a through insight into Forex trading. I have read your book and yet to start using tips from your book. I would be much obliged if you could provide latest update on GBP/USD since last one you gave was in september 2011.

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