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  • #4,661
  • Jun 2, 2021 8:59am Jun 2, 2021 8:59am
Quoting H0nZ4
{quote} Hi Laura, my question rather was, when do you call it "a Bounce of ADR line" and when is it "ADR Breakout". Never mind. Here are my observations of how the market behaved, when the price reached the ADR line in the last few days and what were the CompRSI values in that particular moment... {image}
Hi,

Apologies, I misunderstood. I tend to regard bounces as anything that reacts within 10-15 pips (depending on volatility of pair) of the ADR line.

As it's a rather inexact science, I advise people to wait until they see some sort of reaction/rejection to be on the safe side. More aggressive traders will likely prefer to take the hit of the line straight away if everything else lines up.

Finally, thank you for the data. Very interesting to see it laid out that way. I think it highlights the transient nature of market behaviour in terms of there being exceptions to every 'rule', but hopefully it does provide a general idea.
  • #4,662
  • Jun 2, 2021 9:24am Jun 2, 2021 9:24am
Quoting H0nZ4
{quote} Hi tesiag, I apologize for any incomprehensibility of my post. The question mark means "I am not sure, if it can be clasified as a bounce or rather a breakout." The table doesn't include all the tests of ADR levels, just a few examples. Maybe one picture says more than my limited ability to express myself in English: {image}
Thanks...
So you identify bounces, breakouts and false breakouts

And importantly (for me at least) Laura helps, in her rey to you, to put in somewhat rigorous terms the above definitions....
Based on those definitions one could extend your analysis to actually identify and count in a given period of time (1week, one month, or whatever else) the number of bounces and breakouts and false breakouts......

How discretion could turn to rule.....
  • #4,663
  • Jun 2, 2021 9:56am Jun 2, 2021 9:56am
Continuing the theme of ADR bounces, GU is reaching an interesting point on the 15m timeframe.

ADR High is pretty close. RSI under 70. 200SMA between price and ADR High.

These factors, when combined, provide a narrative that could encourage different types of traders to react in various ways.

An aggressive trader will short somewhere between 200SMA and ADR High, a more cautious trader will short if price rejects ADR high in terms of candle/bar structure. An even more conservative trader will wait for price to close below the 8EMA channel before getting short.

This is where discretion, trader personality and risk tolerance all come together to create various decision points. There is no 'correct' approach to scenarios like this, only judgement calls.

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  • #4,664
  • Jun 2, 2021 12:32pm Jun 2, 2021 12:32pm
Quoting LauraT
Continuing the theme of ADR bounces, GU is reaching an interesting point on the 15m timeframe. ADR High is pretty close. RSI under 70. 200SMA between price and ADR High. These factors, when combined, provide a narrative that could encourage different types of traders to react in various ways. An aggressive trader will short somewhere between 200SMA and ADR High, a more cautious trader will short if price rejects ADR high in terms of candle/bar structure. An even more conservative trader will wait for price to close below the 8EMA channel before...
Crystal clear Laura....but have you (who are our guide) any specific preference or all depends on the day or the mood or some other 'rule of thumb'?
  • #4,665
  • Jun 2, 2021 1:06pm Jun 2, 2021 1:06pm
Quoting tesiag
{quote} Crystal clear Laura....but have you (who are our guide) any specific preference or all depends on the day or the mood or some other 'rule of thumb'?
My preference is to trade aggressively, so I'd be looking to enter somewhere between SMA200 and ADR High.
  • #4,666
  • Jun 2, 2021 11:44pm Jun 2, 2021 11:44pm
Quoting LauraT
{quote} My preference is to trade aggressively, so I'd be looking to enter somewhere between SMA200 and ADR High.
Hi, shall we have (or do u already have ) a whatsapp group to share ideas and entries if others are interested?
Arun
  • #4,667
  • Jun 3, 2021 2:11am Jun 3, 2021 2:11am
Hi Laura
it is a good entry?, nomarly when you trade m5 do you attention on m15 and m30 TF?
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  • #4,668
  • Jun 3, 2021 2:35am Jun 3, 2021 2:35am
Another sell on gu, could you give me some comment
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  • #4,669
  • Jun 3, 2021 6:40am Jun 3, 2021 6:40am
Quoting arunthegreat
{quote} Hi, shall we have (or do u already have ) a whatsapp group to share ideas and entries if others are interested?
You are welcome to set up anything you like but I can't be involved. This thread is probably the best place to share ideas and entries.
  • #4,670
  • Jun 3, 2021 6:42am Jun 3, 2021 6:42am
Quoting potay90
Hi Laura it is a good entry?, nomarly when you trade m5 do you attention on m15 and m30 TF? {image}
Yes, very good entry.

I tend not to look at additional timeframes too much (aside from a quick glance at the MTF dashboard) as MTF analysis can lead to more confusion than clarity. However, there are many who only trade in accordance with higher timeframes and do well, so it's a case of finding what suits you.
  • #4,671
  • Jun 3, 2021 6:44am Jun 3, 2021 6:44am
Quoting potay90
Another sell on gu, could you give me some comment {image}
Less keen on this entry as you are selling into bullish momentum. Much better to wait for that momentum to die off and to see signs of the downtrend re-asserting itself.
  • #4,672
  • Edited 7:31am Jun 3, 2021 6:56am | Edited 7:31am
Hi

Still busy to go through this thread so I might have missed something already said.
I tried enter twice on EU M1. Both times stopped out by the spread.
Is my entries valid and should the SL in hindsight been wider.

Thanks
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  • #4,673
  • Jun 3, 2021 9:09am Jun 3, 2021 9:09am
One practical demonstration of ADR Bounce:
Today on GBPCAD, everything was "green", but the Comp RSI value was 65 only.
I've set S/L to 15 pips, TP on the next level below actual price...
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  • #4,674
  • Jun 3, 2021 9:12am Jun 3, 2021 9:12am
Quoting Snowbird510
Hi Still busy to go through this thread so I might have missed something already said. I tried enter twice on EU M1. Both times stopped out by the spread. Is my entries valid and should the SL in hindsight been wider. Thanks {image}
I do not advise trading currencies on 1m timeframe - too much noise. You're also trading a pretty flat SMA200, much better to aim for pairs that are trending.
  • #4,675
  • Jun 3, 2021 10:07am Jun 3, 2021 10:07am
Quoting LauraT
{quote} I do not advise trading currencies on 1m timeframe - too much noise. You're also trading a pretty flat SMA200, much better to aim for pairs that are trending.
Thanks for the reply
What would be the lowest time frame for currencies you suggest. Just try to understand as working thru the previous pages.
Would the AN M15 be a better option not taking into account that the yesterday high seem to act as resistance.
The ADR also still a way off and has not locked yet.

Thanks

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  • #4,676
  • Jun 3, 2021 10:15am Jun 3, 2021 10:15am
Quoting H0nZ4
One practical demonstration of ADR Bounce: Today on GBPCAD, everything was "green", but the Comp RSI value was 65 only. I've set S/L to 15 pips, TP on the next level below actual price... {image}
Very nice.
  • #4,677
  • Jun 3, 2021 10:17am Jun 3, 2021 10:17am
Quoting Snowbird510
{quote} Thanks for the reply What would be the lowest time frame for currencies you suggest. Just try to understand as working thru the previous pages. Would the AN M15 be a better option not taking into account that the yesterday high seem to act as resistance. The ADR also still a way off and has not locked yet. Thanks {image}
5m, 15m, 1H - any of those timeframes are fine, really just depends on how often you can check charts.

The AUDNZD example is better in terms of SMA slope and RSI, but notice how it keeps banging its head against Yesterday's High. That is becoming quite tough resistance.
  • #4,678
  • Jun 3, 2021 11:29am Jun 3, 2021 11:29am
Hi Laura do you use wide stoploss on trading, or base on ATR? or base on last swing high low?
  • #4,679
  • Jun 3, 2021 11:47am Jun 3, 2021 11:47am
EURGBP

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Plan, Prepare, Execute, Repeat
  • #4,680
  • Jun 3, 2021 11:49am Jun 3, 2021 11:49am
Quoting potay90
Hi Laura do you use wide stoploss on trading, or base on ATR? or base on last swing high low?
The problem with placing stops just beyond a previous swing high/low is that most people do it. Price seeks out liquidity and a bunch of stops sitting in the same place is an appealing target.

I use an emergency stop, quite a distance from current price action. The only purpose of the stop is to protect my capital from an unforeseen event or from me being unable to manage the trade. Rather than be stopped out, most of my trades are closed manually when I feel I have been proven wrong.

The important point is that, alongside this approach to stop losses, I deliberately trade with a miniscule amount of risk per trade. I appreciate that isn't always possible for people with smaller accounts. However, for anyone who has the choice available to them, I would always recommend reducing position size and increasing stop size. Rather than trading bigger size with smaller stops. But these are decisions we all have to make individually as part of our trading plans.
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