GBPUSD compounding your analysis

Rob Lee of AiMS continues his forex educational blogs with Mastering Elliot wave.

Using Elliot wave on the Daily chart we track 1-2-3-4-5 points (points, not waves) and then apply A, B and C correction. A goes to 4, B to 3 and C to 2 giving us A4, B3 and C2 sequence and targets for taking profits both with and against the trend using a hedging matrix.

Putting it all together, from previous GBPUSD charts in our blog your see how we find entry and now how we exit.

Remember that there are waves within waves, the last GBPUSD action (March 2010) at the “bottom” for example is a 4-hourly Elliot 5 up to the correction which at the time of writing is at A4 of its correction. have a look on current 4- hour charts and see if you can find it, mark it up on a chart and track it.

Mastering Elliot will take you from a run of the mill trader into the world of super returns with clear trading plans and controlled compounding and positional management.

Hint: look for carry trade positions within the waves i.e. pairs that give you roll over fees in a given direction,  AUDUSD long was a very good option recently until its slight bear bias.