GKP

Hi Diver.

Couple of questions for you: Why are you using the 261.8% Fib extension for your wave 3 target and how did you come by the 50p length for wave 5?

Genuine questions not criticisms...

261.8 is a supposition; 161.8 is a necessity for it to be 5 waves impulsive. It also needs to have divergence between waves 3 and 5, otherwise it's not impulsive, so we will see. The last three days would definitely appear impulsive in their action.
Wave 4 would ideally be 38.2 of wave 3; and wave 5, I would love to be 1.618 of wave 4. These are not compulsory, merely idealistic, so are open to variation but, if they do, I just bet they vary in a fibo variation.
Have a good weekend over there mate. I just bet it's 'B' cold ....brrrrr!
Take care:)

What is the view on GKP 'needing' to backtest 203-205p before further upward movement?

Well, that's really odd: when I tried to post my latest GKP chart last evening the software insisted on continuing to post the previous chart; now, this morning the correct one is shown??? Scratching my head here.... Whatever!

Jacko, as far as the extension is concerned, the chart posted shows the minimum position. The way this took-off it may well go to 423.6fib. There's just no telling till we see what transpires.

Bonobo, at some point there will be a retrace. Where that reaches to will depend entirely upon how far this goes north. Therefore, the 203 level may or may not be relevant in the future. I would expect a minimum retrace of 38.2 at the end of wave 3 and, once the entire move is complete, a minimum of 50% retrace.

Hi bonobo
The 203 has been the fulcrum for gkp for a long time. This level has played a big role.
Up above 203 and down below 203. in my view this level is the most important level for this company.


The best place for entry is the 203 level and if it did come back to this level then there is a good chance it would bounce from it,but if it goes through then back down to the 180ish again.




you can tell that there has been good volume recently by looking at the volume chart or looking at the OBV(On Balance Volume). The OBV is at the highest point since october 2011 so that bolds well for GKP in the short term.

The share price should now head towards the 230 gap resistance in the short term .

support.....203,,187,,172,,164(short term trend line),,161,,139
Resistance..230(gap resistance),,242,,247,,261,,281,,298,,339(gap resistance),,376,,465

bonobo77 wrote: What is the view on GKP 'needing' to backtest 203-205p before further upward movement?

"You should never follow the crowd."

With respect remo, you are so wrong here. So wrong that it hurts me to point it out. The market IS the crowd and you should always follow it. There are no prizes for be contrary. How is that not obvious?

You should follow the crowd and follow the indicatoras that the crowd uses because that is what moves the market. Those are usually the common ones.

As to extremes vs closing prices, a day trader can use closing prices on any time frame he chooses, it doesn't have to be the daily.

Let's agree to disagree. I have demonstated on both Blvn and Gkp the benefit of closing prices. I called the recent bottom on both. No one else on here did.

GL with your trading.
F4T

remo wrote: hi food4thought
every trader is different .
With trend lines it all depends on what type of trader you are.
Quite a lot of people on here day trade so using end of day charts wont be good enough as you need hourly time frames for early entry.
I use extremes and end of day charts do not show that.So totally no good for what i do.
I dont agree with the comment about most market participants use closing price.So you have to use it or else its foolish??????...Most market particpants lose so following them is not a good idea.
You should never follow the crowd.
Again its all down to what type of trader you are.If it works for you then stick with it.
here is a few examples of the difference between an end of day trend line and my extremes on a candlestick chart.

End of Day using USDGBP currency

Extremes using Candlestick

from the above example you should be able to tell which one is more effective and the big difference in them.

GKP End of Day

GKP extremes using candle

Theres not much in it when your talking short term on these but if you look at it from a long term view then the lines do appear far apart.

Dont take it the wrong way but i thought id better show the difference between the two.

Again its all down to what type of trader you are.

remo

Food4Thought wrote: Well I hate to say I told you so. The 162 area was a clear bottom and long term support back to 2009 as I mentioned several times on here.

I think that many on here draw their trendlines incorrectly. You have to use the closing prices for trendlines, that is what the majority of market participants use so it is foolish to do otherwise.

I also think that alot of traders overcomplicate their analysis using too many indicators and complicated wave therapy

My advice is to keep it simple. My target is still a 50%+ gain from 162 within two month which would need a gap close at 230.

No offense meant, just giving advice as I see it.
GL to all.
F4T

Food4Thought wrote: Hmmm, lots of negativity on here whch seems a little odd given the technicals. Positive divergence on MACD and a positive tick. In fact all indicators look pretty good to me. Maybe some missed the entry point.

Last time the sp hit the long term support line was 29/6 and before that 4/8/11 and both provided sizeable multi day bounces.

Well I guess the fiscal cliff will decide how the year ends and begins but if tonights session is positive IMO we are looking to test 203 and 206 at minimum in coming days. If not 162 is a bottom in any case for me not to be revisited.

F4T