AUD/USD Analysis

Possible contracting triangle set up on 30min. Will consider a short if the bottom trendline is broken. This could coincide with the FTSE needing a correction as its very overbought on 30min/1 hr too

Thoughts

The rally that has formed overnight/this morning is in overbought conditions up the the 1hr chart, there are 2 counts here now, either this is a B wave of a zigzag with one more low to come or the 3rd wave up of the final 5th has started.

Unsure of this for now so will wait for it to play its hand

Good start to the week!

Result of first live trade - Position closed for 48 points. Wouldve just hit the limit on FTSE open but it was not worth taking a risk considering RSI was high and it can get volatile at open

LIVE TRADE

I am long FTSE December 5266 based on the analysis below.

My target is currently the 50% retracement but will start taking points off the table if we reach the 38.2 area depending on the situation we are in. Limit set at 5304

Technical Analysis - FTSE 100

MACD Histogram indicators on the 2hr chart seems to suggest that we are due an upleg. Price has also diverged with RSI, Stots and Momentum which prefers the long scenario

Elliott Wave Analysis - FTSE 100

The majority of this week, we have been playing out a correction in the markets which resemble a wave 2. The formation it has taken so far believes me to have taken a zigzag formation. Currently there are 2 counts i have as to where the markets are going next.

The first image shows we have had our first 5 waves down as part of the Zigzag which is the A wave. An Expanded Flat B wave is now being played out which can retrace anything between 38 to 79% of Wave A.

The second image shows us having a full 5 waves down as an A wave and now we have begun a B wave which will move in 3 waves. Projected targets for a safe trade in both cases is a 38.2 retracement.

Welcome

Im using this blog to record all the elliott wave and technical analysis i do on the stock markets. I shall be trading the markets via spread betting and will keep a record of all the live trades i make and why i make them. I shall be mainly trading the FTSE 100 and Forex currency pairs mainly as position trades.

As someone who is still learning how to trade effectively i believe keeping a record of events, decisions and trades will make me become a better trader in the future

Best regards
Tee Man