Scalping the EUR at the European open

Monday 11th June at 06:40 and looking bullish.



Here is the outcome at 08:09:



For me. the trick is to catch the 07:00 candle with a buy stop order above the pull-back. This strategy works well when the 7 am move is strong and there is no pull-back after the move.

Did you go long EU and EJ?

Today Monday, take these two, the AUD, was measuring its forces to the EUR, and closed well, did not reach the target, but I took 30 pips between the two pairs.

I went long on all four pairs, but only EUR/JPY reached its target and I closed all others when EUR/USD reached its line of resistance.

todays trades on all 4 pairs would have been a loser before the 20 pips target on each one was reached. not sure how you folks could have made pips.

There is no worse blind than the one who does not want to see.
My strategy with this method is to enter the candle at 7am London time, once it breaks support or immediate resistance.

I think you may be incorrect.

The strategy (as I see it) is that no matter what the charts are telling you, one has to wait until 7.00am (UK time). This of course is Frankfurt open. Ideally the price will take off straight away IF there has been some retracement in the hour or so beforehand and one can then open a trade immediately (option 1) If not then one should wait to see if price finds a nice support/resistance area (could be horizontal or diagonal ema line) in the period between 7.00am and 8.00am. One can then perhaps open a trade at that support/resistance area (option 2).

Looking at the charts from this morning, 15 min for EURJPY and 30 min for EURUSD (below) "X" marks the spot.

I hope tellboy agrees with my brief synopsis of his strategy!

Tues 12th June at 06:30 (GMT) looking bearish, but EUR/USD and EUR/JPY have fallen out of sync. This suggests that there will be indecision in the market and it will therefore be wise to stay out of the market unless there is a strong synchronised move on all pairs in one direction. The 7 am candle will show us.



Inconsistency with a bearish candle on USD and a bullish candle on NZD showed the indecision in the market, until 08:00 when the market decided to go long on all pairs. Retracements on the Aussie and Kiwi were pretty reliable indicators for a long move. What this shows us is to stay out of the market until there is synchronicity between all pairs when the market decides to move.

Today Tuesday, I see an uncertain panorama, the eur is competing its forces against the usd, and there is no synchronization with the other pairs like the jpy. I stay outside.

Well I did open a small short on EU just after session open. Looking for 1.1750 brought up my SL to BE so no loss if it doesn't work out

Unfortunately missed the best entry point which was just before 7.00am

EDIT
Well it was bullish after 8.00am (UK time) so I got stopped out of course

The real value of this strategy is that it works very well when all the criteria are met. This teaches is that to trade against the strategic rules is a very risky business and sometimes you will be lucky but most times you will not.

Weds 13th June. Not a pretty picture with no synchronicity between pairs. EUR is bullish against the JPY and the Aussie, but bearish against the USD and NZD. Indecision in the market suggests staying out unless you can crab a few pips with a strong 7 am move on any pair. That's a bit risky.



At 08:15 and the market just can not make up its mind.

Almost a repeat of yesterday! But you are quite right

Thurs 14th June. At 06:45 all looks bullish with the possible exception of EUR/JPY. This was due to a strengthening Yen. USD was also holding strength. Aussie was weak with a Kiwi showing a little strength. All in all an indication towards long positions on all pairs with the possible exception of EUR/JPY.



In the outcome charts below, the strategy reached its 25 pip target with the Aussie and Kiwi, but failed with EUR/USD. A trade with the JPY was seen as a bit risky, so, today's trades gave two out of four for reaching targets.

Friday 15th June at 06:30 after the EUR took a dive from yesterday's double whammy news items. Is the EUR set to continue its earlier decline?



The market couldn't decide whether to continue the decline or to retrace, so it went sideways. The bull candles at 7 am for Aussie and Kiwi told us to stay out because they broke the criteria for the strategy. For those who do follow the rules this meant staying safe. The risk-takers had to wait for price action to synchronise at 08:00 for a downward spike, but this was not sufficient to meet its target on any of the four pairs. So, no shamrocks today. Have a good weekend.

Thanks tellboy, you too.

It is an excellent system in my view because the mistake that small traders make is that they will spend the whole day constantly searching for a good setup. Yesterday was an exception - but how many days come along like yesterday - they are few and far between!! Looking at when to trade rather then looking at when not to trade is fundamental. Filtering out bad trades is infinitely more important then trying to find good ones! It's a subtle difference. It's mental strategy, right? - how many of us spend time studying mental strategy before we start even opening the charts? Very few I think.

Once one starts looking at the charts it requires extreme discipline and mental strength to be successful. So very strict rules are vital. Of course a strategy that is +80% at filtering out bad trades is worth it's weight in gold IMHO. Well done on finding one.

Monday 18th June. The conditions around the EUR pairs are decidedly bearish with strength in the Aussie and Kiwi in particular where they are grouped together in the upper quadrant of the strength table on the left of the first set of charts below. We are therefore looking to see a bearish candle at 07:00 on all pairs for a signal to go short:



Although none of my selected pairs reached their target of 25 pips, it was a good scalp following the bearish 7 am candle on all pairs. Exiting trades at 08:15 when they failed to reach their targets was a good strategy to avoid losing profits gained.

Great first couple of hours again. After that the market manipulators and Stop hunters get to the office and start working in earnest. Usually the end of profitable trading for the day!

If RT's only realised that and stuck to the script I think they might see some good profitability. On average (and in this game one must always try to increase the odds in one's favour) this time of the trading day produces the best results. Time and time again.

I went with GJ - missed GU but 40 pips rake off - not too bad! Using the same principles on the GBP pairs. I went with GBP pairs because GBP was weakest currency earlier. Of course that's turned around now which is the typical market manipulation tactics.

Noticed this thread and thought a couple of my 1 min charts might be of interest.....

The Three Dragons idea is from my work some years ago with Sonic.....its a simple way of keeping the profitable side of the market with varying levels of positions....PA around levels whilst watching for Wide Ranged Bodies and monitoring the tick volumes to identify when the Big Boys and active

I'd say that this is a system that is so different from the strategy used in this thread. I like to keep things simple and stick to the strategy. Thanks for the suggestion, but I see it as a distraction.