Sleepingwolf

Sleeping Wolf... I don't like the way price broke over into January at all... I don't think we should be holding long positions at the moment in GBPUSD.. I'm still giving it a little more patience before I hop on board.. The candle for december signals a bottom should occour now or soon.. It is not a 100% guarantee that there is a bottom in place yet.. Be careful !

As for targets.. I use Fib targets usually...

I'd say get your hands on anything from Steve Nison.. Books ? Sure why not ! --- Depending on your account balance (I'm not sure what kind of capital you are dealing with) I would advocate shorting USDJPY anywhere around current levels.. But I would also warn you of the high volatility present in this pair... So possibly expect upside before down side.. Just stick to your guns and dont over-leveredge and you'll come out a net winner .. For now the possibility remains that the phsychologically important 100.00 Number could cause some heavily whipsaw price action, But this will only be prelude to a major Bearish break sooner or later.. The longer term elliott wave structure indicates the U.S. Dollar will plummet against the Japanese Yen.. Even though many comments have come from the Bank Of Japan saying they will do anything in their power to stop the appreciation of the YEN, they can't, plain and simple.. Currency markets are not owned by the bank, they are owned by the people who need the currency (The People) .. The Bank can only try to manipulate the price fluctuation, the exact same way we try to, but their attempts to fight the mass phsycology of the people will prove to be futile in the end no matter what they do... Knowing that the Bank Of Japan is trying to keep USDJPY at higher prices as of late, they will continue to do so until it is impossible anymore then price will continue downward.. Have the patience to stick to your short USDJPY position if you hop on board, it could be a choppy ride, so just know what your in for..

I always start by looking at the monthly, then the weekly, then the daily and so fourth. --- As for stops--> You will want to place your stop about 5 pips above or below the reversal point (depending if going long or short), plus whatever you pay on the spread. I deffinately recommend learning Elliott Wave too, The book is called Elliott Wave Theory by Frost and Prechter. There is also another Elliott Wave book as well called Mastering Elliott Wave by Glenn Neely, both are excellent. You'll find the combination of candlesticks and Elliott Wave with help you in a big way. -- Also, move your stops to break even when the market allows you, and as price progresses in your favour move the stops up behind price to lock in your profits, but don't move them up too far, leave the market room to bounce around or you'll get stopped out of positions too early.

I use MACD and stochastics on occasion but not always.. They do help when you're first starting out trading, after a while they are not necessary because you'll be acustomed to what you are looking for.

Hi there Sleepingwolf. I learned candlesticks from the best, The man who introduced them to the western world, Steve Nison (The Godfather Of Candlesticks) lol His website is CANDLECHARTS - STEVE NISON He sells a DVD set that will take your trading to unheard of potential, I highly recommend getting your hands on it. As for setting stops, it's fairly easy, You need to wait for a candlestick reversal, once it is identified you place your trade with a stop above the reversal. (Pretty easy) If you know candles. -- PS: I'm not too sure about that short AUDCAD trade, I'm no longer in that one, price didnot move as expected and I'm not sure about direction in that pair right now so I'm not touching it right now until a clearer pattern emerges. There are plenty of opportunities elsewhere anyway.

If you have any questions or need help with anything feel free to shoot me a message, I'm always glad to help.