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  • #261
  • May 14, 2008 8:42pm May 14, 2008 8:42pm
PeterCrowns recommends that we treat start of day at 06:00GMT and to pay more attention to IBs formed in first 6-9 hours of the day, and he has explained clearly the basis for his recommendation.

But when we say "we pay more attention to first 6-9 hours of the day", does that mean we should ignore IBs formed after 9 hours? If we do this, then we may miss out good trades, as was the case for this particular G/J trade.

On the other hand, if we should not ignore IBs formed after 9 hours, but merely to be more cautious trading based on them, then 2 questions: (1) We will be looking out for IBs throughout the trading day (06:00 to 05:59GMT), not only the first 9 hours. (2) What is the criteria to say "This IB is good for trading"/"This IB is not good for trading"?



Quoting jarroo
The Gbp/Jpy from this moring.

Again I took 0500 GMT Open which was 203.63. It just so happens that the 0400 GMT candle was an IB. So I played it off the 0500 GMT open. Right or wrong? Oh well, it looked playable to me.

Price came down and tickled the bottom of the 0400 IB. Not strong at all. Price then moved up and broke the top 0400 GMT IB pretty strong so I entered at 203.75. My stop loss was placed just below the bottom of the IB where price tickled, at 203.50 -26 pips.

Price moved up pretty strong and I didn't cover the trade risk (my stop loss amount -26). Price climbed to over 100 pips and I decided to take some off the table. Just by blind luck Price fell right after I took half off at 204.83. for +108. I am still in the trade with the other half, with the stop loss at 204.10
  • #262
  • May 14, 2008 8:55pm May 14, 2008 8:55pm
Quoting blueskies
PeterCrowns recommends that we treat start of day at 06:00GMT and to pay more attention to IBs formed in first 6-9 hours of the day, and he has explained clearly the basis for his recommendation.

But when we say "we pay more attention to first 6-9 hours of the day", does that mean we should ignore IBs formed after 9 hours? If we do this, then we may miss out good trades, as was the case for this particular G/J trade.

On the other hand, if we should not ignore IBs formed after 9 hours, but merely to be more cautious trading based on them, then 2 questions: (1) We will be looking out for IBs throughout the trading day (06:00 to 05:59GMT), not only the first 9 hours. (2) What is the criteria to say "This IB is good for trading"/"This IB is not good for trading"?
Point taken about the 0600 GMT, I will take it under advisement. (Just kidding)

About the first 6-9 hours of the trading day. Remember this chart from post #97? It shows there is more pip movement is in those first hours. Meaning there is a high probablility that the big moves happen at that time.
For me I will forget trying to trade a IB after that time. If one or two IBs form and are suceessful and I didn't take them, so what. I want to trade during the high probabililty time, not the low probability time so that my trade will make the best move.
Gbp/Jpy trade happen during these high movement times.

I hope this helps.
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Indicators show the past. Price Action "Indicates" the future.
  • #263
  • May 14, 2008 9:46pm May 14, 2008 9:46pm
Quoting jarroo
The Gbp/Jpy from this moring.

Again I took 0500 GMT Open which was 203.63. It just so happens that the 0400 GMT candle was an IB. So I played it off the 0500 GMT open. Right or wrong? Oh well, it looked playable to me.

Price came down and tickled the bottom of the 0400 IB. Not strong at all. Price then moved up and broke the top 0400 GMT IB pretty strong so I entered at 203.75. My stop loss was placed just below the bottom of the IB where price tickled, at 203.50 -26 pips.

Price moved up pretty strong and I didn't cover the trade risk (my stop loss amount -26). Price climbed to over 100 pips and I decided to take some off the table. Just by blind luck Price fell right after I took half off at 204.83. for +108. I am still in the trade with the other half, with the stop loss at 204.10
My other half stopped out at 204.10 from my 203.75 entry. I'm still in the habit of locking in pips. Probably should have left this at break even. Did I give it enough room to run? Only time will tell.
Indicators show the past. Price Action "Indicates" the future.
  • #264
  • May 15, 2008 12:29am May 15, 2008 12:29am
Looks like the USD/JPY might give us a very low risk entry.
  • #265
  • May 15, 2008 12:30am May 15, 2008 12:30am
Quoting billflet
Looks like the USD/JPY might give us a very low risk entry.
0400 IB
Indicators show the past. Price Action "Indicates" the future.
  • #266
  • May 15, 2008 12:32am May 15, 2008 12:32am
small stops big position size, a beautiful thing
  • #267
  • May 15, 2008 12:42am May 15, 2008 12:42am
From Peter's post:

"The answer is: the same as any other time, but especially focus on trades that setup "early" in the day. Meaning within 6 - 7 hours of the open.

The open I look at is 00:00 CST or 01:00 EST. This would also translate to 06:00 GMT. Now if you wish to declare another time the official open of the day, it is your choice and your money.

I do have a friend who believes that 00:00 GMT is the official day's open, and he's had some success trading with that concept. But he trades the JPY pairs more than 60% of the time, which may be a mitigating factor."

Remember that the US is in Daylight Savings Time and that 01:00 EDT is now 05:00 GMT. This is also more logical as it allows time to set up for the Frankfurt Open, currently at 06:00 GMT due to European Summer Time.

Edit: On the above basis, it looks as if GJ is setting up for an early IB trade....
Trading Levels with WRBs
  • #268
  • May 15, 2008 12:45am May 15, 2008 12:45am
Quoting Islander
From Peter's post:

"The answer is: the same as any other time, but especially focus on trades that setup "early" in the day. Meaning within 6 - 7 hours of the open.

The open I look at is 00:00 CST or 01:00 EST. This would also translate to 06:00 GMT. Now if you wish to declare another time the official open of the day, it is your choice and your money.

I do have a friend who believes that 00:00 GMT is the official day's open, and he's had some success trading with that concept. But he trades the JPY pairs more than 60% of the time, which may be a mitigating factor."

Remember that the US is in Daylight Savings Time and that 01:00 EDT is now 05:00 GMT. This is also more logical as it allows time to set up for the Frankfurt Open, currently at 06:00 GMT due to European Summer Time.
Excellent. Thanks Islander.
Indicators show the past. Price Action "Indicates" the future.
  • #269
  • May 15, 2008 12:49am May 15, 2008 12:49am
Quoting mbqb11
small stops big position size, a beautiful thing
Right, that's the whole appeal to me. That, and we get quite a few setups.
  • #270
  • May 15, 2008 12:52am May 15, 2008 12:52am
Quoting Islander
From Peter's post:

"The answer is: the same as any other time, but especially focus on trades that setup "early" in the day. Meaning within 6 - 7 hours of the open.

The open I look at is 00:00 CST or 01:00 EST. This would also translate to 06:00 GMT. Now if you wish to declare another time the official open of the day, it is your choice and your money.

I do have a friend who believes that 00:00 GMT is the official day's open, and he's had some success trading with that concept. But he trades the JPY pairs more than 60% of the time, which may be a mitigating factor."

Remember that the US is in Daylight Savings Time and that 01:00 EDT is now 05:00 GMT. This is also more logical as it allows time to set up for the Frankfurt Open, currently at 06:00 GMT due to European Summer Time.

Edit: On the above basis, it looks as if GJ is setting up for an early IB trade....
so setting up for trades "within" 6-7 hrs of the open tells me that I really should be looking for set ups in the Asian session and see what they do as they get closer to Frankie
trading naked.......
  • #271
  • May 15, 2008 12:55am May 15, 2008 12:55am
Quoting billflet
Right, that's the whole appeal to me. That, and we get quite a few setups.
DIBS posses a lot of strong qualities I have been "taught" by fellow traders gracious enough like Peter.

 

  1. Small Stops, Larger position size
  2. Unlimited potential Reward, with downside always in control
  3. Frequency of trades = Greater ability to compound
  4. Simplicity in execution
  5. Strong Underlying theory to support the simplicity of the method

I continue to test this with great interest

  • #272
  • May 15, 2008 1:12am May 15, 2008 1:12am
Quoting piphitman
so setting up for trades "within" 6-7 hrs of the open tells me that I really should be looking for set ups in the Asian session and see what they do as they get closer to Frankie
GM Pip - I guess that you could have a signal candle in the early Asian session, BUT only activate it if it fits the criteria AFTER "the Open" - i.e. a time filter.

Edit: for GJ as its the volatile cross of GU and UJ, I'm wondering if it would be a good idea consider some kind of filter - either price or time - to guard against the whipsaw spikes that GJ is prone to - especially around FO and LO.
Trading Levels with WRBs
  • #273
  • Edited 1:18am May 15, 2008 1:16am | Edited 1:18am
Anyone else see\trade the short on USD\CHF? IB at 0500 GMT.

I'm in from 1.0522, stop at 1.0538

EDIT UPDATE - Taken half trade off at 16 pips profit. Free carried for the other half
Leonardo Follower
  • #274
  • May 15, 2008 1:21am May 15, 2008 1:21am
Quoting shodd
Anyone else see\trade the short on USD\CHF? IB at 0500 GMT.

I'm in from 1.0522, stop at 1.0538

EDIT UPDATE - Taken half trade off at 16 pips profit. Free carried for the other half
Missed that one. Free ride down for you!
  • #275
  • May 15, 2008 1:23am May 15, 2008 1:23am
Hi there,

As expected it when further it could go further after London open.
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Forex Price Action Hacked - Price Action Rockstar
  • #276
  • May 15, 2008 1:27am May 15, 2008 1:27am
Short U/C.

Too bad did not enter position on E/U. Seems EUR strength is the reason behind this morning's moves. And I do remember PeterCrown mentioning to "Buy on strength, sell on weakness".


Quoting shodd
Anyone else see\trade the short on USD\CHF? IB at 0500 GMT.

I'm in from 1.0522, stop at 1.0538

EDIT UPDATE - Taken half trade off at 16 pips profit. Free carried for the other half
  • #277
  • May 15, 2008 1:30am May 15, 2008 1:30am
Quoting shodd
Anyone else see\trade the short on USD\CHF? IB at 0500 GMT.

I'm in from 1.0522, stop at 1.0538

EDIT UPDATE - Taken half trade off at 16 pips profit. Free carried for the other half
yep this could be a fun session, free rides on usd/jpy gbp/jpy and usd/chf, one loss on gbp/jpy anyone in the same boat
  • #278
  • May 15, 2008 1:30am May 15, 2008 1:30am
Hello sorry to intrude
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  • #279
  • May 15, 2008 1:31am May 15, 2008 1:31am
Quoting billflet
Looks like the USD/JPY might give us a very low risk entry.
Nice call. I took the 0400 IB.
Indicators show the past. Price Action "Indicates" the future.
  • #280
  • May 15, 2008 1:33am May 15, 2008 1:33am
Quoting jarroo
Nice call. I took the 0400 IB.

0400 IB on the gbpjpy was good too.
Indicators show the past. Price Action "Indicates" the future.
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