P1: a/b c08
August 12, 2008
Printer: Yet to come
Real Traders, Real Time
second unit short position, Jagir exited just after the GBP traded above the minor W.a low, for another small profit of 82 pips on the second unit. As it turned out, this was a very smart move as the GBP eventually continued to advance to a new high.
JPY Short Trade Setup: Possible ABC Corrective High As of September 21, the last bar on the daily Japanese yen (JPY) chart, the weekly momentum was OB and daily momentum had made a bearish reversal for a dual time frame momentum short setup. The JPY had reached a minor 78.6% price retracement and 62% time retracement. Everything was in place for a possible irregular ABC corrective high. With a typical ABC, the Wave-C exceeds the extreme of the Wave-A. In this case, the potential Wave-C was below the Wave-A high, but with momentum, price, and time in place for a high, Jagir considered the correction could be an irregular ABC and a good short setup. (See Figure 8.9.)
FIGURE 8.9 Setup for Short Trade, JPY