The Cable double day / the two day "rule"

Hi,

after seeing this happen so many times over the last 6 months and having capitalized on it several times as well, I thought I'd share.
After an "out of the blue" strong trending day like thursday(and oddly enough, it usually IS a thursday when it happens), you can almost always predict this to happen:

Overnight and during the London open, price will retreat 40-60 (more can be possible but is rare, I think past 75 would say something is up) pips from the high or low put in on the thursday/trending day and then put in a second day with close to or the same volume pip wise in the same direction.
What this means is that you can almost blindly put in an order at the next S/R zone or trendline you can find in that 40-60 pip area, put a 30-50 pip stop and aim for 100+.
I am not sh*tting you, this is one of the most simple and blatantly obvious ways to get back into a strong trending cable.
Like I said, it seems to like to happen on fridays after trending thursdays, but basically the go 100+, correct 40-60(yes I know that this will also line up with fibs etc, like I said, pick a likely spot to enter), go another 100+ and then rest a while pattern usually unfolds just like this and on any given day pair

It also corresponds to bullish bars/bearish bars quite obviously and coincides with bullish/bearish engulfing candles, DBLHC/DBLHLC etc pp, but all I am saying is that trending waves like this on cable tend to go in two day pairs(monday and tuesday was the same deal as well) and there's an easy way back in...
Just trying to simplify something that can also be expressed in dozens of other ways (elliot, price action, MAs, whatever is your poison)...

Just thought I'd share, since it's sometimes so hard to make it so easy and for some reason one is always too afraid that after one day it might be over and "just as I try to get in" it might reverse. Then you stay out and see another 100+ run unfold....

(If you're wondering why I'm posting so much nonsense, just trying a simple take on something and if all else fails: I was bored!)



Good luck with your trading,

SeekingLight


P.S. I know it also coincided with a data release today, but please get my point, this is not just a data reliant occurrence and I am not a fundamental FX terrorist anyway.

right now is friday morning...when you said thursday did you mean yesterday?

do u mind posting a chart so we can learn?

thanks

I basically agree with the original post. After a strongly trending day i often like to look for a clear flag or pennant to set up, and then look to trade the break in the same direction the following day. If the set up is nice and clear you can use a relatively tight stop and the potential rewards are good.

Basically I'm just saying bullish bars with proper form will usually have a followup(that's not from me, that's from learning from James16)....I posted an example for today here and I recommend the whole thread for more price action info...

Including the example for monday/tuesday attached to show the difference of getting in on a breakout vs the 40-60 pip retrace idea / double day logic.

But you don't trade it in advance, like always.
Means I'm not so bad like I think, there are others which do the same.

BTW: Are you not anymore in eChat?

Perfect example today.

50 pips down, 120+ up. Thursday day one, Friday day two / double day, just like it is supposed to be. How much easier can it get?

Live proof

Best regards,

Seekinglight.

Hi,

just wanted to say it's still applicable...

"basically they go 100+, correct 40-60(yes I know that this will also line up with fibs etc, like I said, pick a likely spot to enter), go another 100+ and then rest a while"

>>>> Yesterdays low: 1.8996, up to 1.9049 (40-60 pips like I said), down 84 so far already.

Yes I know that news supposedly were the cause, but it didn't change the actual outcome, now did it
Was short at 1.9033 as a tester after 1.9050 proved resistance, now over 60 pips in there and waiting to see if it manages to get out of the range or not.

Just always find it funny how simple it can be if you allow it to be.

Best wishes,

SeekingLight

When the gbp runs a 100 or more pips think how many times it does not retrace to the 23.6, 38.2, 50.0, or even the 61.8 level. You almost alway get one of them and mostly two.

At 7am EST looking at GBP/USD 15 min charts and this exact scenario is playing out again. Looking for a bounce back to 1.8955 to confirm.

Bounce to 1.8995

Another Thursday / Friday double day, finally!

Phew, missed those!

The chart below shows the daily average range (DAR) for the days of the week and how it has changed from 2006 to 2007 on which days have the highest (DAR). Friday has slipped from having the highest (DAR) to the third highest. Maybe it will get back to what it had been doing. Good observation on the double day rule. Thanks I will be looking for that in the up coming weeks.

have you read the ebook by Avi Frister? I won't go plugging it, but one of his three setups that work on purely price action, no indicators, is specifically for cable and plays on this two day pattern that you have also noticed...

he estimates that it occurs 3 or 4 times a month.

Is still someone following this rule?
What experience have you made?

Although I didn’t try but I think, this type of system isn’t the long run trading strategy!