OK you've probably been asking the question: Jerry, why on earth are we not catching a ride on these two big sell-offs that we've had over the last couple of days?
Well of course, with our 4 hr "long side of the market" or "short side of the market" strategy we just don't take any sell trades when price action is ABOVE the 4 hr DASR.
But we have been looking at a new strategy called "daily analytics" whereby we utilise the Euro's average daily trading range (130 pips but can be a lot more!), Asian session high/low, daily pivot point, and BRN support/resistance levels to try and get a "picture" of exactly price where and how far price action is heading. We obviously MUST try to follow the "big guys" and trade in the same direction THEY are trading and have the same target/s!
Have a look at the EURUSD 1 hour and 4 hr charts I have posted below.
On the 1 hour chart the key areas we need to look at is when price EXCEEDS the Asian high or low (completely and decisively breaks higher or lower then the Asian high/low). Today we had it going both ways but note that price action really did not fully break through to the upside. We saw a big sell off and at 3.00 pm we had a great opportunity to enter short when price broke decisively through the daily pivot AND below the asian low. Plus of course we had a very bearish previous candle!
The other great opportunity, using our 4hr DASR strategy - there was a lovely "bounce" off the 4hr DASR when the 4hr candle opened. Quite OK to take because price action is now on the "short side" of our vegas tunnel! (look at 4hr chart attached)
rgds
Jerry
Well of course, with our 4 hr "long side of the market" or "short side of the market" strategy we just don't take any sell trades when price action is ABOVE the 4 hr DASR.
But we have been looking at a new strategy called "daily analytics" whereby we utilise the Euro's average daily trading range (130 pips but can be a lot more!), Asian session high/low, daily pivot point, and BRN support/resistance levels to try and get a "picture" of exactly price where and how far price action is heading. We obviously MUST try to follow the "big guys" and trade in the same direction THEY are trading and have the same target/s!
Have a look at the EURUSD 1 hour and 4 hr charts I have posted below.
On the 1 hour chart the key areas we need to look at is when price EXCEEDS the Asian high or low (completely and decisively breaks higher or lower then the Asian high/low). Today we had it going both ways but note that price action really did not fully break through to the upside. We saw a big sell off and at 3.00 pm we had a great opportunity to enter short when price broke decisively through the daily pivot AND below the asian low. Plus of course we had a very bearish previous candle!
The other great opportunity, using our 4hr DASR strategy - there was a lovely "bounce" off the 4hr DASR when the 4hr candle opened. Quite OK to take because price action is now on the "short side" of our vegas tunnel! (look at 4hr chart attached)
rgds
Jerry