The London Open

Good afternoon

I trust everyone is well... I posted a few other examples a while ago and didn't realise how much of a full time job this is in posting on Blogs. I have promised myself to do this more often and see what you think of these trades.

I have decided to move charting packages recently to MT4 and i have to say what a package. I only use a Demo account here at the moment, as i trade elsewhere, but it is free and its worth a sneeky look. You can overlap longer term MA's and CCI's on shorter time frames, which makes charts so much easier to read...

A little about myself... I've been trading for quite a while now and after trading in London and Hong Kong, i decided to leave and setup on my own. Its a lot different trading your own cash but when you crack a winning formula it can be very profiatble as you all know...I now enjoy living in Europe and this gives me the lifestyle i desire...

Take a look at a few of my setups. Today has been good and of course i am a realist, this doesn't happen everyday but i stick to my rules and only jump in when the trades come to me.

I will be posting here most days after the london open...

1. GBPUSD - Looked heavy and as it crossed 20ma the trade was on at 1.9725 for 75 pts lower.



2. GBPJPY - Perfect setup for a break at 206.50 (200ma) for 75 points…



3. EURJPY - Break at 162.60 for a 30 point move…




4. GBPCHF - We built on this one from 2.0775 and sold at various levels on the way down. Low was 2.0625, which was 150 points lower from when we started…




Have a great day and see you tomorrow.

Dan007

Hi Dan, great charts - a couple of questions.
1) What are you using for the MT$ charts as I can see you have some indexes charts also, I use from Alpari and they dont have those charts - only currency.
2) What are your chart setups and how do you use thaem - care to explain your method.

Thanks.

Hi

1) I use WHC MT4... They offer the most charts available in FX, Indices & Commodities...

2) I basically use the 60min MA's overlaping my MA's on the 15min chart... I use a 200 & 50 simple and 20 & 5 exponential....Its very powerful knowing exactly where the longer term MA's are for support and resistance. I also add the daily MA's on the 15min chart in a very light colour to guide me on trends.

Basically i look for crossovers on various time frames. The longer time frames being the stronger player. As you probably know the 200ma is your key player and i use this like a bungee cord. I buy or sell with a drive away from the 200ma and calclauting average distances away from the 200ma i will then trade it back to it, on the retracement.

Nothing complicated and keeping it simple...

Take a look at the charts..For instance can you see the break of the thick black MA on the GBPJPY chart, which is my 60min 200ma on the 15min chart. All the other MA's are squeezing the price down and then the break occurs.

Hope that helps... Will post again at around midday tomorrow.

Dan007

Hi,
I have just added you as a buddy. Please can you tell me more about the strategy that you use. It looks very powerful! Thanks for the posts, they are very good.
J

Good morning

Quiet day ahead of MPC meeting at midday..

GBPUSD was the only small risk trade with a pullback to the 200ma. Broke the channel at 1.9550 for a quick 50 points to 1.9600..

Take a look at the charts attached..

Good luck at 12...

Dan

Hi

Well thats me done for the day... Cable was the only low risk, high probability trade back to the 200ma for 50 points.

See ya tomorrow.

Dan

Dan,

While I applaud you for you sharing your method, something here seems fishy.

While I sort of believe in coincidences, this one is tooooo perfect to be a coincidence. Your choice of moving averages (esp the fact that you are using both sma and ema), and the actual cci values are something I have seen at a commercial website. Then we have MDS Markets coming here and adding you as a buddy.

Something smells fishy.

K.

Hi Kermut

Nothing fishy at all mate...I am a full time trader and posting a few of my trades for the day...Good to start a chat with you and if you have any questions please do ask. Happy to help...

Interesting day to day with a lot of the trades pulling back to the 200ma and crossing back through the 20ma and 50ma resistance...

The JPY crosses had a massive move last week (as we know) so a powerful pullback was on the cards... Take a look how you can spot the trade on the 60min and then move to the 15min for an entry point. The 20ma became a support for the move through the 60min 50ma.

Always break time frames down for specific entry points and use the CCI's for exit strategies...

Good morning all

I trust you are all well... Well it looks like rates will remain on hold for now. Possible 0.25% cut by the end of year.. Tough decision for MPC as inflation is No1 priority...

Quiet london session but took GBPJPY and USDJPY down to support levels.

60min shows me the trade and the 15min gets me in on cross of CCI's.

Still in both as often when announcements come out the main trend continues...

Good luck today.

D

Good morning all…
Interesting to listent o Mr King and his team on their inflation report… Tough times ahead i fear!!! They kept talking about patience and feel it will take 18-24 months before inflation will come back into line towards the 2% target.

USD hasn't really gathered momentum but thats the way it goes. The inflation data hasnt helped either...

Claimant Count in GBP came in a lot higher than expected which makes GBP very hard to trade. Growth suggests rates have to cut but Inflation at 3% is making it doubtful.

Speak tom…

GBPCHF break of triangle…
EURCHF break of ascending triangle…
EURUSD break of triangle….

Good afternoon all

Messy day to be honest but good trades taken in Gold, Crude and FTSE...

The currencies hovered at key resistance levels and u can see the JPY currences falling off their medium term highs for small pullbacks. keep your stops above the resistance level for safety... Any trade close to a support and resistance can be worth a play in the opposite direction, witha tight stop... It often picks me the odd 100 pips...

- Crude Oil saw a positive turn off 123.75…Follow the 21 CCI for entry on the 60min.

- FTSE bounces off Daily 200ma on 60min chart. The higher low bounced at 6180 for a move towards resistance at 6250..

- EURJPY - The 163.00 resistance held all morning and watch how the 21 CCI fell off the highs. Great entry level…

- GBPJPY was dragged lower with USDJPY… Watch resistance level at 204.50 and the 21 CCI moving below 0.00 level.

- Gold broke 50ma with high lows all morning.. Gave indication that USD would weaken, which helped our JPY trades...

Mixed picture with figures to be honest… Still like EUR lower but USD figures keep letting me down. The market is very illiquid and lost direction to me, so be very careful.. Each day is different and hard to build in these conditions but there are good possibilities if you wait for them.
Speak tom.
Dan

Good afternoon all...

Not long till we bowl all these kiwi's out in teh Test match!!!

As you know its a messy period and a lot of indecision in these currencies. Take it day by day until we get a clearer picture for longer term plays. Gold was the call of the day…What a trade!!!

GBPJPY - After breaking support line on 60min chart, the 15 min gave the perfect entry point on a short trade…The red heiken ashi candle takes u in and gets u out.

EURJPY - The box strategy works well here with 50ma on 60min as a resistance…Look how the 15min gives u exact entry point on break of support. Red heiken ashi as well…

EURCHF - All these swiss’ currencies looked similar…The EURCHF broke support on 60min and the 15min gave us an entry on break of 60min 50MA on 15 min chart…The Blue line… Take a look at how it bounced off daily 200ma. The21 CCI gave us entry and the 10CCI on an exit… The 21CCI then gave us a perfect entry for a revers play..Always look at the 21CCI for entry…Vvvv helpful…

GOLD - This was called perfectly today…. I had my reservations but look how the 20ma held firm on the 60min chart. The 50ma was crossing back for a golden cross and a perfect break of the triangle for a long trade…

Hi all


Very quiet today with limited alerts out in GBP and USD.

Picked JPY strength and CHF strength today, even in a quiet market for a few pips…

GBPJPY - Drifting lower from 203.65 and target 203.10

USDJPY - With Jpy strength the 21 CCI showed us an entry from 104.00 for a breakout…

GBPCHF - My favourite currency pair.. Amazing how much this can move on a quiet day… Break below 200ma at 2.0500 for a move to the 4hour support line at 2.0415.

EURUSD - With USD weakness all round the Eur found support off the 60min 20ma and the daily 20ma for a move from 1.5575 to a break of the 1.5600 level.

Please ask questions if u have any...

I like what I see very much,when will u update this site?Mike in Flint,Michigan

Hi dan007

Came accross this thread by chance and must confess i'm intrigued! Am i right that the larger portion of your trading occurs during the London Session? Do you always look for trading opportunities around the london open? if so when in you're experience is the london open exactly?

Finally i'd be interested to know what parameters you use in your trading. I note you've been trading for approx a decade and while there is no substitute for experience, i am sure others as well as my self would be interseted in emulating your gameplan if your prepared to share

cheers

rocwell

Hi Dan

Thanks for starting this thread. I trade the Frankfurt and London open trying to catch the initial moves of the day. I use very simple set ups but there is always room for improvement.
I would be interested to know your set ups.

Thanks

Jeremy

Hi all

Trust everyone is well...

My philosophy in trading is TO keep it simple and stick to your trading plan...

I use a 200ma & 50ma simple and a 20ma exponential...The 21CCi and 10CCI are key as well for trends...

I work off a Daily, 60min and 15min charts for specific entry points.

The 1st point is to always remember where you are compared to to your 200ma. This is critical and the greater the distance you are away from the 200ma the greater the chance of an aggressive pullback to the 200ma.

There are 3 stages in a move...

1) The drive away from the 200ma..Use the 20 and 50ma as a support or resistance.

2) The pullback and break of 20ma and 50ma..This is what we call thE Box strategy when the candles are boxed between the 200ma and the 50ma... Be careful here as u never truely know the exact support and resistance levels... However the 50% retracement rule is key here and calculate this before every trade... Look at the GBPJPY chart below... The 1st higher low before the break of the 20ma was key and then the break of the 50ma for a 50% move, then a retacement for a 123 setup and a bounce off the 50ma for a pullback to the 200ma....

3) At the point of return to the 200ma is key..This is the resting point and you need to wait for a clear move for the direction... The 21CCI is key here and on every time frame the 21 CCI shows me the trend...

Lets look at GOLD... I have to admit i love Crude as well and been long for quite a while and bought again on each dip... Its bid and its about taking advantage of these trending markets...

Ok Gold...Look at the Daiy chart below and the breakout of the resistance line..Look how the 21CCI broke above the 0.00 level for a clear change in trend. This strategy is the box strategy because we are positioned betweeen the 200ma and 50ma as shown on the chart so we need to be careful of the 50ma as a resistance level here...

Ok lets look at the break on the 60min chart as the daily was set for the break...Look how the candles break the 50ma on the 15th and the 200ma before hitting the daily 20ma (dotted yellow line)..This was 1st target..Here we wait for a retracement back to the 60min 20ma and 50ma before the momentum up again... Can u see the 21CCI (in green), showing the way and the dip down below the 10CCI, before it bounces back above the 0.00 for a move higher... Perfect setup and no need to head to the 15min for an entry...

Recently with the markets being so bad i have had to move onto the 15min on the currencies for entry points so i can grab at least 25 points on each trade on the london open...I tend to pick 3 or 4 from the 10 pairs...

I have specialised on this for ages and it definitely works...

Take a look at the GBPCHF chart below today on the 15min chart..The CHF looked bid, even in a quiet market and i have to admit GBPCHF is my favourite currency pair...Look at the 123 retracement back to the 200ma led me to believe this was a short for today... USDCHF started to move as well but look how the 21CCI showed me the way for a move lower from 2.0500 to 2.0420... Look at the JPY currencies as well... Quiet similar to the CHF today to be honest with USD weakness all round...

I focus on pairings of CHF's , GBP, EUR's and then JPY's and when these pairs move together i then look for the best setup and then trade the 2,3 or 4 pairs and this tends to bank me quite a bit each am from 6.30 am to 10am...

Dont trade US anymore as i dont really need to now and i like to stay fresh each am for the 1st move...Prefer to be with the family...

There is a little bit more to it and i will cover it later but that is the idea...

KEEP IT SIMPLE...

Hi Dan,

could you pls share with us ur CCI indicator software???

Thanks Dan007, for your detailed post. Only just had a chance to study it at and its about 23.50 gmt so my brain is not functioning at its best! i do have some questions but i'm just too knackered to put them down in a post!

Will hopefully be able to marshall my thoughts a little more clearly after some sleep but just wanted to say 'cheers' for your reply anyway

hi dan, Thanks for posting your trading technique, im looking forward to picking things up from this thread. I do have a question. what do you consider to far from the 200 ma ? Thanks