Greetings.

This chart should look very familiar to you as this was the one I put up yesterday. As I have mentioned in the past, when you combine a good mixture of technicals together and they all flow together, you get some pretty high probability trades.

I knew I was looking for a ZZ Wave 3. I also had a contracting triangle which is great for showing a continuation of the trend. So, even if my count was wrong, I knew i had a better probable chance of being correct because I matched it up with a triangle. If you entered at the market price shown on the chart 0.8239, you’d be up more than 150 pips as current price is about 0.8406.

The reason for this post is not to toot my horn about being correct. I can give you plenty of trades throughout my career where I was completely wrong. The point here is that I used two types of analysis (Elliott Wave and a Contracting Triangle) to increase my probability that this trade was correct. There is no one magic formula to the markets, however, you can increase your probability of being correct. Keep researching, develop a trading plan and stick with it, always remembering this is a dynamic market and you must change with the times.

We do have a few more of these similar patterns forming in the market right now. They are not complete but when they do arise, I will be sure to post them.

Good luck and we’ll see everyone again shortly.

Hello.

We have a shorter term set up on the AUD/CAD pair. Although not our idea of the ideal ZZ, we have a potential ZZ forming right now. Again, this is not my ideal formation due to the Wave 2 is must shorter (time wise) than Wave 1. Does that invalidate our forecast? No - but that is definitely something to keep an eye out for.

We potentially also have a triangle forming now, which also indicates that it is conituing to go up.

We have 3 stop prices here in case the trade goes against us.

Stop 1 - 0.8158 (where the bottom line and the next candle intersect)
Stop 2 - 0.8147 (low of 10/21/08 at 21:00)
Stop 3 - 0.8128 (this would also serve as our invalidation point).

Be sure to check for any announcements/news that may effect this pair.

Good luck.

Hello everyone.

We actually have a trade set up on the CHF/JPY hourly chart. This will be a good example of putting some elements together to form a trade set up.

First off, we’re in the 3rd wave of a Zig Zag (ZZ), which is one of the best waves to trade with. We’re also approaching a nice trendline. If we see a nice break of this trendline, look for a nice movement down.

Be sure to watch the news announcements. This is rigth between the two markets (Japan closing and Europe opening). As always, use your money management when taking any trade.

Good luck.

Hello everyone.

We have a potentially nice trade set up in the AUD/JPY. Although this is not a considered a major pair, there is still a great deal of potential profits to be made.

As you can see, we have a ZZ formation heading up. We have a complete Wave 2 and am heading up into a Wave 3.

We will continue to keep scanning the charts and post if anything comes up. Remember to use your money management when executing any trade.

Thanks again.

Hello everyone!

The FX markets, as a whole, has not given us a great trade set up so let’s look at the EUR/USD. This will be more of an analysis than a trade set-up or call.

Our initial scan indicated that we are moving up to complete a correction from the larger move downword. Take a look at the two lines. Look for a strong break of either of these two lines to enter your trade.

Good luck and we’ll see you again shortly.

The senate has approved the Bailout Plan by a landslide vote.

The EUR/USD has since bounced back from hitting the low of 1.3929 and seems the bears are gaining some of the momentum back. The GBP/USD looks very similar as we seem to be moving steadily up from the lows.

To find out what happens next for the U.S. Bailout Bill, read FX Street’s Marina Schiaffino and Mauricio Carrillo’s report about it.

We now turn our attention to the ECB rate decision set for Thursday. Most analysts predict that the ECB will hold borrowing costs at 4.25%. After that, of course, we have the U.S. Non-Farm Payroll numbers.

Be sure to trade the NFP live with FX Street’s Wayne McDonell. For more information, click here.