All my market opinions reflect my own trading behavior, this behavior is based on Elliott wave’s law. Any part of my opinion cannot be considered as an investment advice and may or may not match with market opinions of other trading2day.com authors.
Wave labels table. Degree of our waves on charts may or may not match with yours, it is not an error.
Monday morning, 17 July 2017.
GBP/USD spot. The end of correction.
Long term waves structure of GBP/USD.
Hunting a high degree wave is a war campaign. You may lose ones, twice and even thrice on this way – it does not matter, you should win the final battle – establish a long term position near the wave start, and all war is yours. Step by step we went forward, aiming at the end of wave , but every our assumption was false and every SELL attempt was premature. Eventually this wave has shaped.
Wave  form – initial triangle (A) – zigzag (B) – ending triangle (C). The last wave E in ending triangle can still go higher toward the upper triangle line and even break through this line shortly, but all minimal targets have already been achieved:
1) Price has exceeded previous wave C top, an ending triangle has shaped.
2) Price has reached the fourth wave level in the previous wave , marked on the chart above.
3) US dollar strength is awaited on all major currencies.
Time to SELL. Or anyone can wait for a first move down in wave 1 to be seen and SELL at the wave 2 end. But
1) GBP/USD has already made all minimal reverse requirements.
2) Wave 1 down may be very deep, and wave 2 up may be very shallow to SELL pound on the run.
3) Waves form of first waves 1 and 2 may be not clear to catch the right SELL place.
4) Open short position for GBP/USD earns you about +0.33 swap points per every day.
5) We can enforce our short position later using floating profit.
There is 200 points distance on Friday evening between current GBP/USD rate and upper triangle line level, I add 50 points for a possible overshoot, it makes 250 points of possible move against us. My account should endure this counter move.
1) I choose a desired amount of money I can afford to use.
2) Next define a deal size. To open position at the current price, to endure 250 points
counter move, at the move end my trading account should still has 70% of initial value. So
initial_amount – 0.7 * initial_amount = floating_loss
floating_loss / 250 points = point_value
Using point_value we can define amount of british pound we can SELL from our trading account. Moreover, we can add more SELLs during wave  run, using floating profit. Track our GBP/USD reviews for a place to SELL again. Anyone can choose another affordable loss values, let us say 75% or 80% of initial money amount.
Open short position should be held until the nearest target for wave . The nearest target is placed 1 point below wave  end. At this place all our SELLs should be closed. MetaTrader4 and Tenfore-Morningstar fed charts show different levels of wave  end. Tenfore offers the highest possible value, this value could be used as wave  target for an additional safety.
For every opposite opinion – “We can not be so sure in the future to say such decisive words” – I could remind these words:”To see future is our work, and sometimes, probability of our forecast tends to 1.0 with a magical precision”. Every opponent is offered to disprove our waves count and to present his own one with his own trading plan.
SELL british pound against GBP in wave  is the most reliable and profitable deal at the present time among all major markets – currencies, stocks, indices, bonds, commodities.
All my market opinions reflect my own trading behavior, this behavior is based on Elliott waves law. Any my opinion can not be considered as an investment advise and may or may not match with market opinions of other trading2day.com authors.