GKP

This is a chart of SLE, This is what GKP traders should look for to give a green light for safer entry. you can see the 123 low quite clearly on this chart and this came after a long down trend.
GKP is in a down trend currently and any longs are just a gamble as there are no buy signals.
so look at the chart below to see what you need to look out for to give a green light.
Even with the green light you should have stops attached.
I repeat...THIS IS NOT A CHART OF GKP ...I know there are a few crazy people out there that might think this chart is GKP

Could it be that this is about to form wave 4 of C? It hit the trendline support from the 64p and 87p lows yesterday and if it closes around 135/6 would form a hammer off this support on the weekly chart:



dl.dropboxusercontent.com/u/20815047/GKPweekly09_05_13.gif

I still think it would need to make a lower low even if it does bounce here so I'll not be doing anything just yet. Well, except for watching and waiting that is!

PS This is the slight drawback with a 123-low approach; in a downtrend waves b of A, wave B itself and waves 2 and 4 of C should all give 123-low breakout buy signals but are only corrections in the downtrend. That doesn't mean don't take them, but it does mean bank profit or move your stops to B/E.

Examples of this on the above chart were:

The breakout above 243p gave a 123-low to go long in Sept 2012 during wave B up;

The breakout above 187p gave a 123-low to go long in Jan 2013 during wave 2 of C up.

Don't get me wrong, 123-lows are great trade strategies, but they don't always give rise to long term uptrends.

I've labelled a tentative 3 at yesterday's low....

Me too. There was a hammer on the 4H and it's gapped up off that today.

161p still the number on this.

yep

also

w1 of c =~258 - ~161 = 97p
w3 of c = 228 - 126 = 102p

Yup, that's enough to guarantee wave 3 not the shortest.

161 - 87 = 74 = 97 x 0.764 (give or take a 1/1000th)

161 - 104 = 57 = 97 x 0.588

Interesting...