DislikedAND... btw. Peter... If you are listening... I {again} would like to say "Thank You. Because I didn't get that Play until you explained it."Ignored
Thanks for the nice sentiments. Something so simple is better in the hands of those who appreciate "simple".
In my view, the market is "simple". It only goes where it is fed.
-----
I got a few emails asking for additional clarification about how one trades the inside bar setup mentioned previously (Now officially called the Daily IBar Setup) when the markets are as choppy as they've been recently.
The answer is: the same as any other time, but especially focus on trades that setup "early" in the day. Meaning within 6 - 7 hours of the open.
The open I look at is 00:00 CST or 01:00 EST. This would also translate to 06:00 GMT. Now if you wish to declare another time the official open of the day, it is your choice and your money.
I do have a friend who believes that 00:00 GMT is the official day's open, and he's had some success trading with that concept. But he trades the JPY pairs more than 60% of the time, which may be a mitigating factor.
I've found that you are always better using an opening time period that fits closely to the normal biological tendencies of the greatest amount of people who control the money in the world.
That would not indicate using the Japanese open @ 00:00 GMT.
Back on to the choppy markets we're seeing.
I've attached a hourly chart screen snap of the past 2 days in the GBP/USD.
One of my favorite trading markets, it was pretty rambunctious yesterday and today. Which is usually good for trading.
You can see that the Daily IBar Setup works best earlier in the day. The first trade yesterday was an immediately loss, the sell taking place directly after the first hour of day's action. Then there was a reversal buy within minutes which you could have held for the entire day profitably.
And then a second buy a couple of hours later above a second inside bar.
Today, it was a simple case of taking the first Daily IBar Setup sell, taking half of the trade off at 1:1 and letting it ride.
Other markets weren't as nice as the Pound, and had a lot more 1:1 profit targets hit and then subsequent stopouts.
The second chart below is the Eur/Usd "free trade" I took in that market today. The trade happened a little later in the day than I would normally operate, but the range was so narrow, the other pairs were gaining on the dollar. I also knew that with no previous defining trade today, there would be tons of sell stops below the low of the hourly inside bar at 1.5788. There were. Minutes later the trade went 1:1 risk/reward and I had another free trade.
Now I wait. Seems to be the story of my life. By the way, that is the story of being a trader--- waiting for the trades you are in to work out, or not.
The secret to success as a trader, in my humble opinion; is find a very low risk method to enter the markets..., and learn to wait.
Have a good week.
-PeterCrowns-
3