01.14.2010: POSSIBLE SHORT TRADE GBPUSD; TRADE ENTERED. STOP LOSS OUT; TRADE 1 OF STAGE 3 IS A FAILURE (SCORE: NO WINS, 1 LOSS)
The GBPUSD pair is hugging the inside of a channel. Since we are in a 4 hour uptrend with a recent higher low, I drew a trendline off these two points and created a parallel line off the lows. After moving the line up to the high after the lowest-low, it shows the pair as being near the upper end of the channel. I would expect a retracement to those areas.
I am going to set my entry a few pips outside of the channel at 1.6368. My stop loss will be 70 pips above this at 1.6438. I am setting my stop losses at the 50%, 61.8% and the 100% Fib retracement lines. The 100% Fib is at the bottom of the channel so I don't know if I can get the full profit out of this one if it takes a few days. 
Well, the trade did not go my way. I added this chart to get the idea as to why this trade did not succeed. Click on the chart and look at the text on the chart to see how the trend lines were drawn.
The GBPUSD pair is hugging the inside of a channel. Since we are in a 4 hour uptrend with a recent higher low, I drew a trendline off these two points and created a parallel line off the lows. After moving the line up to the high after the lowest-low, it shows the pair as being near the upper end of the channel. I would expect a retracement to those areas.
I am going to set my entry a few pips outside of the channel at 1.6368. My stop loss will be 70 pips above this at 1.6438. I am setting my stop losses at the 50%, 61.8% and the 100% Fib retracement lines. The 100% Fib is at the bottom of the channel so I don't know if I can get the full profit out of this one if it takes a few days. 
Well, the trade did not go my way. I added this chart to get the idea as to why this trade did not succeed. Click on the chart and look at the text on the chart to see how the trend lines were drawn.
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