This is a video summary of the Live Forex Trading Room session on August 1, 2007.

Today’s Summary:

A good start to the month of August, and we do hope to continue in this fashion. Today’s trading was entirely about Wolfe Waves. Wolfe Waves, Wolfe Waves, and more Wolfe Waves.

First and foremost: GBP/JPY. Since yesterday, we’ve been following this pair upwards, expecting a downtrend to form. We plotted bearish wolfe waves with the appropriate targets (we discussed Wolfe Waves at length in the Live Trading Room).

Price was in consolidation, and broke the Wolfe Wave channel (around 18:15 GMT, July 31 chart time), coming down to the Wolfe Wave target. With the target achieved, we wanted additional confirmation from our Fibonacci extensions. Price stopped at the 127% level, expected to go down to 161%. We let the trade run for some time, and the price exceeded our expectations.

Overall an excellent trade here on the GBP/JPY, earning us approximately 150 pips of profit.

Similarly GBP/USD also formed a Wolfe Wave, which we did not end up taking yet. Target lines were confirmed by Fibonacci retracements.

USD/CHF expecting a bullish move up on a bullish Wolfe Wave, which was confirmed today by the price. The trigger was when price came up and down for a re-test, and formed a higher low. The higher low was our confirmation. We are still long on this. Expected target #1 is: 1.2080 (60 points should be quite definite). Target #2: using Fibonacci extensions on this last move down, we obtain 1.2115. We are still expecting further up movement on this pair.

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