BRITISH POUND FUTURES - SET TO SWING

Technically the MKT is at a NEUTRAL NEGATIVE EXTREME and is ready to either pop back into a firm neutral posture or break into a new down trend. The MKT has produced a technical sell signal into support and is in a "Make or Break" scenario. Volatility as well is on the fence and ready to rise with a new trend move and decline with some sideways "positioning".

Key off the 15853 Inflection Pivot for an indication of the session bias. Below here the negative sentiment hangs over the contract pressing support at 15667. A held trade below here is needed to keep the currency on edge.


On the SELL side accept FADE and BREAKOUT strategies expecting an immediate follow through to the MKT's technical sell signal. BREAKOUT strategies should be worked with the expectation that any sustained trade and repeated tests of support will give way to negative follow through. This strategy is vulnerable to the MKT expanding its lower support band in a series of starts and stops. Keep profit targets extended to pay for any monies spent holding a position. FADE strategies should expect an immediate reaction as any held trade or violation of major resistance foreshadows a potential turning point. These are good opportunities to "roll" into a long position when stopped out.

On the BUY side FADE and REVERSAL strategies off major support base are qualified however the FADE is a lower probability and should use tight risk criteria. REVERSALs can risk more but should also go for more profit with the expectation of a turning point "key reversal" signal to play out. BREAKOUT strategies are aggressive and should just "go" and not look back. Risk less and go for more. A laborious lack-luster rise after a positive breakout is a sign that the MKT is more likely expanding its resistance lid for a new consolidation verses transition from negative to positive technical posture.

Note: The MKT has produced a negative signal but it is not confirmed and trending indicators do not support follow through in either direction at this time. The MKT has the potential for big range conditions so don't get stuck FADing momentum in either direction.
 
JS


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

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BRITISH POUND Futures - POSITIVE TRANSITION

Technically the MKT is in NEUTRAL TRANSITION and difficult trading conditions are expected. The MKT has produced an strong positive signal which should keep the MKT firm today if the signal is valid. If the integrity of the prior session's high remains intact a return to a sideways trend less trade is likely. Roll with any new strength and leverage up if good risk parameters present themselves. The potential to get in at the beginning of a new move higher is real.


The 15410 Inflection Pivot is the base supporting the positive signal. If the currency is heading higher it will not do much if any trading below here. A breach of 15534 confirms the positive sentiment targeting 15689 on any new advance. A break under 15379 negates the optimistic outlook.
On the SELL side REVERSAL strategies can be executed off of major resistance levels at or near the previous session high point. Avoid this strategy on higher levels as any new strength has the potential to be the beginning of a move. If the integrity of the previous session high remains intact FADE strategies can be accepted at or near this inflection point on the initial test with tight profit target objectives. If the MKT has already had a reaction off this resistance area avoid this strategy. Use BREAKOUT strategies as a signal to FADE a positive pull-back after a confirm break in the positive momentum. Only take this trade if the previous session high point remains intact.

On the BUY side be more aggressive after the previous session high is taken out. Not that this is a pre-condition but should be noted as a confirmation of strength. BREAKOUT strategies should just "go" so keep risk parameters tight. FADE into any negative reaction off an unsuccessful upside BREAKOUT after a support level is confirmed. Use a REVERSAL strategy to leverage up after the MKT gets back above the original breakout point. If the integrity of the previous session high remains intact, avoid REVERSAL strategies as expectations are that the "positive" signal is going to follow through it should do so straight away and any break momentum is a negative signal that the MKT is going to return to its neutral posture. FADE strategies are recommended early in the session or near the end. The positive signal will either play out from the get go or will make its move in the latter stages of the trading session.

Note: This is a dangerous emotional trading environment. MKT reactions to go a little further that you expect in either direction so anticipate this in your position and risk management.

JS

* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .


To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com  . You can also visit http://www.jsservices.com/  and sign up for a Complimentary FREE Trial.

BRITISH POUND Futures - Searching for Resistance

Technically the MKT has produced a major positive signal into the upper extreme and will need to hold structure if it is going to avoid a drop back into a digestive trade.

Key off the 15035 Inflection Pivot as the potental exhaustive high point for any new interest today.

On the SELL side FADE signals are valid but REVERSAL strategies are a better option at 14916 and 15035. Have resting limit orders off support inflections and use aggressive position management to lock in any unrealized gains on any REVERSAL trade. BREAKOUT strategies at 14801 and 14686 are aggressive but do have the potential to profit from a quick negative move out of the extreme. Use tight position management for these strategies as any unrealized profits can be erased quickly by the underlying positive momentum.

On the BUY side accept FADE strategies off the 14686 support pivot after confirmation. The MKT is extended and may search for stops before it resumes its Bull move. REVERSAL strategies are a better option. The sharper the break, the better for an entry with the expectations that the MKT is going to revisit the recent move high. BUY BREAKOUT strategies above 14801 and 14916 may need to be "worked" as the MKT is extended and has the potential to produce some starts and stops, with 15035 the high point for any positive push. Only above here does the rally extend.

JS

Learn more about JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

British Pound Futures - EXTENDED

Technically the MKT has produce a negative signal into the EXTREME of a BEAR TREND move and will need to hold structure below the 14631 Inflection Pivot if it is going to maintain an aggressive sell posture. Don't press it. Although the MKT is vulnerable a break in momentum has the potential to spark a sharp corrective rally.

On the SELL side downside BREAKOUT strategies below 14359 are valid and should continue to hold negative structure if they are going to extend. Get in to these trades sooner (higher) than later (lower) as new weakness is expected to be stop and go. A more conservative strategy is to FADE a positive reaction after a negative breakdown signal against the 14495 Directional Pivot and even better to wait for a negative REVERSAL off this corrective rise rather than stepping in front of it. FADE and REVERSAL are recommended at the 14631 and 14916 resistance levels especially after a sharp corrective rise. The MKT is negative but is also extended and the probability of a corrective rise is high. Wait for an exhaustive signals or confirmation to jump on.

On the BUY side BREAKOUT strategies above 14631 should have aggressive trail stops and tighter profit targets at 14746 and 14916. There is a good chance for a corrective turn but profit targets and position management should be tight as this is more likely a rally to sell. If you get on, ride it until structure is broken and then look to go the other way. BUY REVERSAL strategies will provide opportunity off of lower support inflections but will work best after a sharp trade lower through major support. Look for opportunity at 14359 and the 14245 and 14116 support levels. Expectations are for no follow through not a reversal of sentiment. Keep risk management and profit targets tight to reduce giveback as the underlying technical foundation today is negative. Avoid FADE BUYS as the negative trend remains enforce with sell FADE opportunities the better place to step out.

Note: Just because the MKT is extended does not mean it cannot get more extended. Any long ideas should wait for a signal don't force one.

JS

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

British Pound - Bear Trend Correction

The Dec'09 British Pound produced a positive signal against a negative underlying trend. Positive action today should be viewed as "Corrective" up to the 16146 Inflection Pivot. This is the expected high point for any upside follow through to yesterday's signal if the underlying negative momentum is going to remain in force. A rise above 16146 is a positive transitional signal that projects the currency up to 16387 and 16661 on any sentiment shift.

A break under 15873 support pivot is needed to put the contract back in a soft spot targeting 15691 on any negative turn. If the MKT is going to stabilize it will do so above here. If not the sellers will be back with 15554 and 15510 targeted.

Corrective trading environments are dynamic. Watch the current positive structure [higher move lows, higher move highs]. If its holding don't be too anxious to step in front of the rise. A break in structure followed by a squeeze test of 16146 or a REVERSAL [false Breakout] at this level is the best opportunity today to re-establish a short position. 16055 resistance will also provide a REVERSAL opportunity.

Only above 16146 can we get on board with the current positive push.

JS

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

BRITISH POUND Z'09 - PRESSING THE LOWER EXTREME

The Dec'09 BRITISH POUND is on edge and pressing it lower support extreme at 15755. If the MKT is going to stabilize it will not spend much time if any below this support Inflection. Only under 15687 is the current weakness able to overwhelm the senses forecasting further losses down to 15443 and 15267 on any negative follow through.

A held trade above 15803 and the currency has the potential to close higher on the day and challenging the 16045 Inflection Pivot. Only above this price point is a positive reversal confirmed with 16467 targeted.

JS

Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.Please review the following CME sponsored tutorial for a complete overview of this approach.STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.

British Pound [Z'09] - On the Fence

The DEC'09 BRITISH POUND slipped back into a corrective posture and will remain on the defensive below the 16626 Inflection Pivot. If yesterday's negative signal is going to mean much the MKT will not spend much time if any above here. If so expectations are for the buyers to return for another challenge to 16724. Be patient. Although a test of this resistance is positive a reaction should be expected. A violation of 9724 and the rally starts to accelerate with 16835 the initial target on a move that has the potential to extended up to 17147.

A dip under 16529 is needed to turn the heat back up pressing support at 16432 on any lower probe. Keep it tight. If the MKT is going to find its footing it will here. If not further losses down to 16237 is the outlook. 16092 is the extended target.

JS

This post supports JS Services Strategy Based Trading approach. For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary Trial.

British Pound U'09 - EXTENDED

The Sep'09 British Pound jumped higher and is pressing the extreme. Key off the 17008 Inflection Pivot today for an indication of the session tone. Below here the currency is vulnerable to a drop back into a digestive trade down to 16694 on any hard hit. Be patient. This is the low point for any selling if the positive momentum is going to pick back up. A failure here and the aggressive buying takes a break down to 16263.

A trade above 17008 will have the contract in a euphoric state. Respect the bid but accept REVERSAL signals off 17008. 17147 and 17364 are the targets for any new gains today and good points to employ exhaustive sell strategies. 17569 is the upper extreme.

JS

This post supports JS Services Strategy Based Trading approach. For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary Trial.

BRITISH POUND - Applied Strategy Based Trading

BRITISH POUND – Initial Target Attained

In my May 20, 2009 post, with the JUN’09 BRITISH POUND contract trading at the 15663 Inflection Pivot, I highlighted a positive divergence signal with a 16633 initial target.

Impressive day in the British Pound.

15663 is the Inflection Pivot to key off for the current advance. If the MKT is going to run it should just go with 16363 and 16633 the initial targets.

Today the MKT attained that target.

By using the Price Map you optimized your position by not only locking in your gains but were also presented an opportunity to get short.

The service is published at 12am cst and highlighted the MKTs technical position to be “BULL TREND EXTREME”. In this technical state the MKT is extended and an exhaustive reaction is expected.


At 1am cst the MKT was at our forecasted target, which was also today’s UP [Upside Pivot or Resistance Inflection Pivot]. With the technical posture exhaustive, taking profits at 16634 was the only option. If you were not on the MKT, a resting overnight order was a nice wake up call.



But the day is just getting started and on the right foot. On the regular session open the Price Map produces a negative signal below the DIR [16542] providing a sell opportunity. Additionally a failure from the 16420 DP [Downside Pivot or Support Inflection Pivot] provides another sell signal with two opportunities to enter and attaining the 16266 DT2 [Downside Target #2].

This is a classic Price Map BREAKOUT strategy. Where the MKT breaks outside the UP-DP Critical Range extremes.

The original May 20, 2009 post signal was valid for a 1000 point move. The Price Map enhanced this with another 800-point winner on the reverse.

This is the power of Strategy Based Trading.

Aligning your strategy with the market expectations.

Today JS Services Technical Outlook was BULL TREND EXTREME. Our expectations are for an exhaustive reversal or digestive trade. Combining this with our long term forecast target we can anticipate a negative reaction and accept exhaustive Reversal and Breakdown Failure signals.

By using the sell bias Price Map entry strategies at risk qualified inflection points we can systematically exploit this opportunity.

By anticipating opportunity we capture it.

For more information regarding Strategy Based Trading and the Price Map please contact me.

JS

British Pound - All that and a Bag of Chips

Impressive day in the British Pound.

Is this the real deal. Could be. At least for another 5 handles through the Memorial Day holiday, if not 15 over the next 2-5 weeks.

Interesting divergence in the Monthly with the MKT breaking structure this year taking out the JUNE 2001 lows but maintaining an underlying positive structure basis the Monthly close.

15663 is the Inflection Pivot to key off for the current advance. If the MKT is going to run it should just go with 16363 and 16633 the initial targets. If things turn eventful an extended run can climb as high as 17589.

A held trade under 15598 and the positive turn is in question and the currency vulnerable to a slide back into a digestive trade.

JS