Islander and Medici trade the European open

For your information

Another trend-following scalp on the m1 and m5 charts.

Why I took it?

 

1. Stalling 10 wilder MA (or 20 ema it's the same), 56 LWMA and 100 wilder MA (200 EMA). MA's are from M5 timeframe.
2. Daily open acts as a magnet pulling price towards it.
3. Stalling again near Monthly pivot.
4. Failed to even reach the 1.17 area which I was waiting for before, so overall trend at this moment was down.
5. Trendline coming from previous move. (Drawn in chart in yellow)

I take always take two types of trades: One with maximum lot size and hedging when the move is exhausted. I try to jump on a spike candle. The other trend-following with SL and risking 35% of what I risk with my CT strategy. Every trend starts from a CT trade, so this would happen if I miss the first entry. Today I was waiting for 1.17 level and we never reached that price. That's why I entered later in the trade above.

1.17 level was key: fibonacci 38.0 pivot, daily and weekly pivot + BRN + outside of envelopes.

The bigger picture.....

And the smaller....

Mmmm....

So far price has only managed to get 17 pips below that July 3rd Low, actually to today's MS 3 at 08:43. Its now back at that level on lower volumes with a new POC at 1.1622 as price is worked by the SM in this narrow range for the last two and a half hours....

Entry, already BE+1. Will see what happens from here, until where we can go.



Missed the initial FIBS2 entry.. Was sleeping. Wished I lived in Europe's timezone.



Decided to change SL 1.16100 as I am trading smaller, want to see a clear break of the trendline that has been forming.

That WRB HG is a magnet for price.

Two HLs so expect that area to be visited sooner rather than later

and it was, almost to its top at 11:59

Edit: .......and to its top / the 618 fib 35 mins later....

For any traders who may be interested in learning more about Wide Ranged Bodies (bars) with Hidden Gaps I have attached a word doc with some basic information.

You may also like to check out the posts made by HiddenGap in various forums.

and so it did - a nice move for those of us who trade the short time frames intra day

Edit: Soz - I missed the 2 x HLs off my chart. Chart updated

I am trying to go short, but stopped out at be+1 4 times already

Would love price to reach yesterdays low, 1.16500 area.

IMO this is not a good time to be trading €......whilst there is normally some activity as the early US Traders get to their desks - USO 1 - this often slows down as USO 2 - the NYSE Open - approaches and trading focuses on Dow, S&P etc...

I think that profit taking from Frankfurt and London session close can give enough volatility for scalps. I agree with you though, would love to be around for Frankfurt and London sessions, but it's 3 AM in the morning in my timezone. I wake up at 5 30 AM (GMT-3) and trade what I can. Only the highest probability setups I see, no need to force a trade if I see too much choppiness.

Was looking for 1.16500 to short but it was reached due to a news announcement. Prefer to not take the spike up as news can be unpredictable sometimes.

The poor US Data at 14:00 GMT triggered some buying in € with an UWRB with UHV on the m1 chart and after a retest of S1 price got back up to the DP an hour later and then Yest Cls

Here's a more detailed look at the action around the turn at 08:40 GMT on Friday morning......

1. Pre London Open there was a Lower High followed by the Wide Ranged Body - a red Marubozo (M) + vol increased

2. A Very High Volume (activity) BUT a narrower range.....must be some hidden buying / profit taking

3. A WRB M held at the **25 Sweet Spot.....No Demand to push down followed by 5 green = buying / profit taking

4. Another red WRB M on increased volume - followed immediatly by an equal volumed green doji = indecision

5. A narrow ranged red M on increased volume = Hidden Buying followed by the low at the MS 3 level at 08:40
in a good volumed small red spinning top / doji.....followed by three green candles with good volumes - more buying

6. Price was then "worked" in a ~20 pip range as the Big Boys - aka Smart Money - exited their shorts and started buying with two Higher Lows before the Ultra High Volumed WRB - a green Marubozo at 12:00

7. The second WRB HV Green M moved proce out of the Accumulation Zone, signalling the start of the rally of more than 70 pips

A Marubozo Candle a solid bodied candle which if wider than previous candles signals increased interest. IF with Higher Volumes this suggests such interest is caused by the activity of the BBs / SM.

Point Of Control ( POC ) level is the level of greatest activiry during a given time period - see Market Profile for more
information.

This use of WRBs with Volumes around Levels is my take on the seminal work on the use of Volumes in trading by the late, great Tom Williams known as Volume Spread Analysis - thank you old friend.

GM Buying thepull back to yesterday's close - also ~ 50% retrace was a high probability trade.

Took partials at T 2 - the 1.618 expansion and will look to add back on any retrace into the fib levels....~the 50 would be nice....TWT

My hourly chart has a Price Projection up to the area of last wednesday's high, some 65 pips up from yest cls. 65 pips = current 10 ADR....mmmm....

Only managed 9 pips higher before the sellers stepped in and pushed price down to new lows for today...

hello Islander, not trading DAX these days?

Hi,
this thread seems to be very interesting. I also trade the European breakout. I would like to join.
thanks . can someone link the main strategy page? is it just the first-page post #3 and #5