Yesterday we discussed British Pound (GBP A0-FX) having a couple early morning trades
in DA and DB. We mentioned monitoring the DT Profile for a trade opportunity setup the
next pause or pullback because it was beginning to exhibit good strength coming back
into the pound.
Below is an attached chart of the current DD trade in progress. Notice when you review
this setup it has a high RF and there is also strength across the board 2, 3, 4 rooms higher.
Currently the initial breakeven target has been hit, so half the position would most probably
been taken off the table and rest of position is moved up to breakeven.
Nice pick Marcus. I think this one will take all 7 hours.
We began a discussion last week in the Yahoo DT User group where we posted some encouraging comments on GBP currency. See the following links--
http://forums.dynamictrend.com/showthread.php?t=43
http://forums.dynamictrend.com/showthread.php?t=44
Over the weekend buying strength (blue color in strength bars/trade balance rooms) continues to filter into the Pound. We are starting to see more 'blue' uniformity across the various rooms, which indicates more trending capability.
Hence, odds continue to pick up the British Pound will generate some good buy signals, as soon as we get pauses or pullbacks.
I believe this is the current DT Profile day-trade in progress for GBP A0-fx. (see two attached items, current chart and Profile.
Notice the pristine nature of strength 2, 3, 4, 5, 6 and 7 rooms higher, and the Momentum Strength bars, the higher RF values.
So far, so good with the initial breakeven target currently being hit. - marc
GBP came within 2 pips of its1.7775 target price. Notice it is also at the end of its DA timing cycle.
(See attached DA Profile room.) Overall GBP is still showing strength on several higher rooms. It may
very well end up higher than this target price, but from a money management day-trade standpoint,
all the "easy" money may have been made with this trade. It might be time to tighten a trailing stop,
take some of rest of profits, and wait for another opportunity on the next pullback or pause period.
(For Moyer)
I am standing aside GBP today, for now. After a strong run up, GBP could be entering a 'pause' or deeper pullback phase.
So far this morning a high quality room trade setup has not been generated.
(If SC and SD had a high RF, SA would be higher quality.)
Guess it is time to just be a patient until better quality shows up in DT Profile.
(For Moyer)
I am standing aside GBP today, for now. After a strong run up, GBP could be entering a 'pause' or deeper pullback phase.
So far this morning a high quality room trade setup has not been generated.
(If SC and SD had a high RF, SA would be higher quality.)
Guess it is time to just be a patient until better quality shows up in DT Profile.
Tues, 20 Dec 2005, almost noon, NYT-- GBP A0-FX just hit its SA target. While it only had a -12, and marginal RF two rooms higher, it did have all the other qualifications of an 'acceptable' aggressive short trade because of the better than average RRR. Other than that, it did not have a dynamic great deal of selling phase analysis to help one better qualify it at the time. I took this trade in the demo account, but to compensate for the not so perfect setup, only took extremely small position. Now getting ready to lock in profits more aggressively. Using a trailing stop to trigger out because it is only noon, and still some potential then next two hours of one more wave of selling down... gambling for a little extra profit now... Odds are now improving you will be able to find a better quality short setup in a room if it were to rally somewhat in next couple days. - mr
Here is that trade parameter chart to reference with.... (see below)
(I covered that trade because I have to get ready for a private webinar and need to concentrate on other things.... Will be focusing a little more now on currencies, in general, later this week to see if any higher quality setups can not be identified.... suspect they will now.... mr)