Trading Aussie Jacko Style

Ok,
Following Jacko´s rules from his journal on the journal thread, http://www.forexfactory.com/showthread.php?t=27286
lets try other pairs and see what we come up with. I like aussie because it seems to move in a cleaner way these days, but you guys decide what you want to try and chime in ...

I also want to add, almost a year later, that I use a lot of price action setups (you can find those on the J16 thread, well worth the read) to confirm entries and to set stops. Jacko, as far as I know, does not use price action, so just want to make that clear. Jacko also has very well-defined rules about stops, which have changed recently due to the increased volatility in the markets, while I tend to try to find entries and use the tightest stops possible. So for the record, while I call this Jacko style trading I do things slightly differently, as you will see. Neither Jacko or I use indicators per se, only trendlines and fibos. Ah one other thing I have taken to doing which Jacko does not do is take profit at support or resistances where I expect price to bounce. I am happy to answer any questions regarding Jacko style trading and would highly recommend you read the J16 thread as well.


First chart is an Aud usd daily so entry here for me would be around 0.9500, above the 50 fib of the last move up, I see support in the 0.9470 area, Im going to do these trades on oanda micro cause Im not used to trading this pair a lot
So, entry at 0.9500, sl @ 0.9450 (we dont have to account for huge volatility as on eurusd) and AH if it drops below 0.9400 ...

Been a while since I've done this sort of analysis but it's good practice to see how I now analyze trendlines with the help of waves

Based on what I'm seeing, daily line chart shows strong support at 0.9450. I've mapped out the waves which I regard as significant points to plot my trendline and have included the 50.0% retracement. If I was to trade this I would enter a long at 0.9450 OR try to get as close to 0.9400 as possible.

Hi,

I agree, the Aussie doesn't look like it may be another good pair for the Jacko Method. The recent break above .9500 gave good confirmation (in my eyes) that this pair wants to go higher and what better than break out, pull back to let the big boys fill their boots and then take off towards parity.

I'm looking for the 1.9450 area too.

Well,
nice work Zoopy, I just want to get the ball rolling really. I havent traded this pair much so I would appreciate any and all input. Also not sure about the stop size but I think Im going to spend some time with the ts simulator this weekend try and get my money out of them (thieves, slippage is outrageous) so I will have a better idea next week. Then again, I might just go to the beach instead lol, ok come on you more intelligent folks, get posting...Raz

The ATR is a good tool for sizing your stops.
I use 2/3 ATR for my stops on the EUR/USD which makes it about 75 instead of 100..... it has been working well.
I can't see any reason for it not working for this pair ( AUD/USD ) or any other for that matter.

Yes atr is excellent and must be incorporated somehow...will have a look at the 2/3 rule when I get back from my classes...thanks

the other method is go back 20 candles and average out the length of the wicks........ if the trend is up average the low wicks .. from open to low of candle, ... opposite for for down trend.
looking at the AUD i would use a SL of about 32, which is a little less than half ATR at present on the daily.

...0.9432, if its 32 pips it sounds too good to be true...

Weekly chart shows price bouncing off 26 week EMA. I would want to wait for a pullback to this a little more before taking a position. Marked line is also confluence of two fibo lines.

32 would work but for a slightly better margin of safety 45 pip would be better..

Also, I noticed on your chart that this week has closed as an IB, inside bar, and price has bounced off the 38 fib of the last leg up from 0.9285...so lets watch if that bar breaks up or down. In fact, its an IB4, so we can perhaps give it more weight(J16 members comments welcome) This also tells me getting in at 9500 is not a great idea, would be better either a pullback on the break of the high(0.9636) or low(0.9511) but neither follows Jackos methodology, so youre right look for price action lower down or after a break of the high and pullback...thanks for the chart yamin, Raz

also on daily we have a beovb, so combined with the weekly IB could be a good indication we are going down...

Didn't really want to post this here since this doesn't really have too much to do with Jacko's method but more a study/style I'm doing. If it makes you feel better, we have a 4 hour wave collapse

Since I posted the other 4 hour chart, on the daily we had a wave that broke to the upside. When I see that I usually wait for the wave to pull back before buying. Having said that... this makes more sense right now plus the major trend is up. I'm still more inclined to buy at 0.9450/0.9400 if possible based on this chart. Just make sure to keep an eye on 0.9300 because if that area breaks and we get a wave collapse, it's time to wait instead of buy.

If we are following Jacko style trading we will only ever buy, following the long term trend, but PA and your waves point to a retrace so I will be on the lookout for long signals a bit lower down...

I'm going to be on a possible lookout to perhaps buy on the eurusd as well. I noticed something "fishy" going on with usdchf. There was a daily wave collapse on that pair which means it may be heading down.

Hi Raz and Zoopie, nice to see you guys here, Im quite a fan of you.

My approach is simple: 1. Buy order at .9500 - obvious support, above 50% and round nr.
2. Buy order at .9600 - the reason for this is the PB formed on friday above support, so my guess is that the price might not reach .9500 but go up instead.

Thanx for your message, Raz. I agree that Euro became much harder to trade nowadays. but I have to figure it out.

P.S. One more thing: I checked the COT Report from last friday and it seems that the investors are again net long on euro and their sentiment is increasing, hence this might bring us a new rally in Euro. For Aussie, they are bullish as well.

Another great post from Jim on J16, take a look at the setup here on eur
http://www.forexfactory.com/showpost...ostcount=11014

looks rather similar to whats happening on aussie daily ..we have had the beob now lets see if we get a breakout ....

here is trade stations

hey tom,
nice post thanks!