Wednesday 15 February 2012

Where's the Trade? EURUSD 7.03 am London 16/2/12

Risk Warning: Trading Forex is inherently risky. This is not a trade alert service and should not be taken as advice to enter or exit a trade. It is simply a narrative of what Straight Talk Traders are watching for, which may or may not happen. What is posted here may or may not develop into legitimate setups on Straight Talk Trading's Complete Response Trading System's specific entry and exit rules, which are only accessible by STT clients.

The Trade: STT ReCoil long trade has set up on the Weekly charts, although it is dueling with an STT Shatterbounce short trade situation. The next shatterpoint at which this will resolve itself one way or another is at 1.2941, where either the Shatterbounce will prove correct and continue the downtrend, or the ReCoil will commence its effect. Provided the momentum and divergence conditions for the ReCoil are met on the 4H and 1H charts, there is a trade long from that shatterpoint region. In the mean time, lower timeframe Shatterbounces short are likely to develop on the way to that shatterpoint.

Direction: Long

Reason: The higher timeframes provide evidence to believe that a retracement higher is to be expected, and thus on signs of the movement downward weakening, a long position is valid.





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