Islander and Medici trade the European open | Page 32 | Forex Factory

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Islander and Medici trade the European open

  • #621
  • Jan 28, 2010 2:32am Jan 28, 2010 2:32am
We are as usual looking for signs that confirm our view of hl/lh's.

The trades taken after 5 min hammer above.

Attached 1 min. Laguerre comes out of basement crosses .15 line, fozzy rsi has moved up. NB thats just a timing issue main thing is the 5 min hl hammer above.

Trade 1 see red line below, exit at W pivot .6215, trade 2 exit at 25 psych level. Next one exit at 50 level.

The hl's keep coming and final trade in at 6253 exit at 75 psych level for +19.

GU has now run 100 pips not sure how much further it'll run.
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  • #622
  • Jan 28, 2010 2:45am Jan 28, 2010 2:45am
Just wanted to add no losing trades this am, always a bonus when that happens.
  • #623
  • Jan 28, 2010 2:51am Jan 28, 2010 2:51am
Hi V....nice trades.

Todays range so far is 142 pips vs the 6 day ADR of 146, so as you say, how much more do we expect......also, we are in this well known S/R area around Medici's favourite 6272 level.....

Looking at the 15 min chart, this morning's retrace was to the 61.8% level and pulling a fib expansion we find the 100% at 6267, the 138% at 6302 and the 161% at 6325.......will cable try for one of these levels???......I have no idea, I'll just follow my chart
Trading Levels with WRBs
  • #624
  • Jan 28, 2010 3:07am Jan 28, 2010 3:07am
It gets difficult and rather risky to trade the European session when there is a big move during the Asian session and most of the ATR is already eaten up, we usually end up with the crumbs. I prefer to see a small range going into the European session.
  • #625
  • Jan 28, 2010 3:08am Jan 28, 2010 3:08am
Coffee time, volume's dropped, so audio alerts set and time enjoy a break....
Trading Levels with WRBs
  • #626
  • Jan 28, 2010 3:45am Jan 28, 2010 3:45am
I've taken a small short off the LH....a confirmed break of 6250 / slow EMA will allow me to add to it......TWT
Trading Levels with WRBs
  • #627
  • Jan 28, 2010 4:53am Jan 28, 2010 4:53am
Quoting Islander
I've taken a small short off the LH....a confirmed break of 6250 / slow EMA will allow me to add to it......TWT
there was another LH and then the 6250 was broken in a wider candle.....I added another short....
Trading Levels with WRBs
  • #628
  • Jan 28, 2010 4:55am Jan 28, 2010 4:55am
Quoting okfx
It gets difficult and rather risky to trade the European session when there is a big move during the Asian session and most of the ATR is already eaten up, we usually end up with the crumbs. I prefer to see a small range going into the European session.

Agreed, hopefully the ADR has now been used up to the upside and later we'll get a chance to test the lower part.....TWT
Trading Levels with WRBs
  • #629
  • Jan 28, 2010 5:13am Jan 28, 2010 5:13am
I booked some profits at the 6225 level = earlier resistance, also bullish momentum divergence on 1 min chart......the last support area around 6250 will be a nice area to sell again....
Trading Levels with WRBs
  • #630
  • Jan 28, 2010 5:32am Jan 28, 2010 5:32am
Quoting Islander
I booked some profits at the 6225 level = earlier resistance, also bullish momentum divergence on 1 min chart......the last support area around 6250 will be a nice area to sell again....

and I did after the nice 5m doji
Trading Levels with WRBs
  • #631
  • Jan 28, 2010 6:52am Jan 28, 2010 6:52am
Quoting okfx
It gets difficult and rather risky to trade the European session when there is a big move during the Asian session and most of the ATR is already eaten up, we usually end up with the crumbs. I prefer to see a small range going into the European session.
Hello, I've had a good time with my visitor but missed a great morning

As for big moves during the Asian session, this morning was an example of a pattern identified in my strategy post on the first page of the thread. The charts describing the pattern can be found here:

http://www.forexfactory.com/showpost...05&postcount=7

It was a clear 'buy around 7am' pattern in line with Islander's excellent entry.
  • #632
  • Jan 28, 2010 7:23am Jan 28, 2010 7:23am
Hi. I discovered your thread yesterday, and it has taken a while to read it all. Your trading style is very impressive.

I am actually quite intrigued by your use of "local" (short-term) support and resistance, and I have to ask: How reliable do you find it to be compared to longer-term S/R? Let me make it more clear: if somebody had proposed me to try and trade the way you do, I'd probably have started by marking important S/R levels on the chart, from the weekly and all the way down to perhaps H1, and also the round numbers. It appears you pay attention not only to those, but also to shorter term stuff like daily pivots, the H/L of the previous asian session, S/R levels defined just a few hours before... in fact many of your quick trades seem to gravitate around the use of these S/R levels (which are of course more abundant than the ones coming from higher time frames), and you are remarkably succesful. So I am wondering whether you find these short-term S/R levels to be that reliable (at least during London), or it is more a case of watching how price reacts around them and then decide what to do (observation instead of prediciton).

For example, I was surprised at the shorts you (Islander) took today at ~1.6250 (post 626). I had been watching the chart for a while, but I could not see any special reason for cable to go back down to retest the asian high (now support). From previous comments you were expecting it and were obviously correct, but I still don't see clearly why. Could you elaborate a little on your thought process for this trade?

Thanks in advance!
  • #633
  • Jan 28, 2010 9:28am Jan 28, 2010 9:28am
Quoting PipAdder
Hi. I discovered your thread yesterday, and it has taken a while to read it all. Your trading style is very impressive.

I am actually quite intrigued by your use of "local" (short-term) support and resistance, and I have to ask: How reliable do you find it to be compared to longer-term S/R? Let me make it more clear: if somebody had proposed me to try and trade the way you do, I'd probably have started by marking important S/R levels on the chart, from the weekly and all the way down to perhaps H1, and also the round numbers. It appears you...


Hi PipAdder and welcome to the thread......I'm busy trading, but when things slow down I'll reply to your questions
Cheers
Islander
Trading Levels with WRBs
  • #634
  • Jan 28, 2010 9:34am Jan 28, 2010 9:34am
Quoting Islander
and I did sell after the nice 5m doji

We waited some time for the break and it finally started about 40 mins ago when cable broke its R1 level, bounced up a little to the Yesterday High level / fast EMA and then headed seriously south.

I exited as we retested the early Asian low at the MS1 level and I'm now waiting for a bounce to consider another sell
Trading Levels with WRBs
  • #635
  • Edited 11:30am Jan 28, 2010 10:27am | Edited 11:30am
@ PipAdder

Medici is the expert on picking out longer term S & R levels and whilst I do look at my hourly chart, I rarely go further out to pick up on levels as he does.

I'm happy to use the Daily Pivot levels which include yesterdays high, low and and todays open level combined with the Sweet Spots and any recent obvious S&R off the aforementioned hourly chart......IMO these are more than sufficent levels to trade off...remembering that we are looking to bank regular safe pips mainly around FO / LO and also at times around the NY Opens.

The short that you mentioned was for me a classic entry.....firstly there is an important area around the 6275 level that's been mentioned in several posts both as support and as with today as resistance.

Today the high was at the MR2 pivot level of 6273 - one Medici's favourite numbers too. That level was retested an hour later after price had bounced up from the 6250 level.....it bounced up off this level again, this time making a Lower High in a 5 min red doji.....for me a classic sell signal.


A clear rejection of the MR2 level often leads to a test of the MS1 level - always assumimg that the DP doesnt hold - today the DP was support before FO, but swiftly broken this afternoon, leaving the way open for a drop to MS1. This is classical pivot trading as explained a couple of years ago by The Dove Alliance.....

I hope this helps

Islander
Trading Levels with WRBs
  • #636
  • Jan 28, 2010 10:37am Jan 28, 2010 10:37am
Todays action.....the arrows are potential entry signals and the ticks exits / short term reversals...
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Trading Levels with WRBs
  • #637
  • Jan 28, 2010 10:45am Jan 28, 2010 10:45am
Quoting medici
Hello, I've had a good time with my visitor but missed a great morning

As for big moves during the Asian session, this morning was an example of a pattern identified in my strategy post on the first page of the thread. The charts describing the pattern can be found here:

http://www.forexfactory.com/showpost...05&postcount=7

It was a clear 'buy around 7am' pattern in line with Islander's excellent entry.

Excellent.....we all need to take a break....http://cdn.forexfactory.com/images/icons/icon6.gif
Trading Levels with WRBs
  • #638
  • Jan 28, 2010 11:25am Jan 28, 2010 11:25am
Quoting Islander
@ PipAdder

Medici is the expert on picking out longer term S & R levels and whilst I do look an my hourly chart, I rarely go further out to pick up on levels as he does.

I'm happy to use the Daily Pivot levels which include yesterdays high, low and and todays open level combined with the Sweet Spots and any recent obvious S&R off the aforementioned hourly chart......IMO there are more than sufficent levels to trade off...remembering that we are looking to bank regular safe pips mainly around FO / LO and also at times around the NY Opens....
great post
  • #639
  • Edited Jan 29, 2010 12:27am Jan 28, 2010 12:09pm | Edited Jan 29, 2010 12:27am
Quoting PipAdder
Let me make it more clear: if somebody had proposed me to try and trade the way you do, I'd probably have started by marking important S/R levels on the chart, from the weekly and all the way down to perhaps H1, and also the round numbers.

It appears you pay attention not only to those, but also to shorter term stuff like daily pivots, the H/L of the previous asian session, S/R levels defined just a few hours before... in fact many of your quick trades seem to gravitate around the use of these S/R levels (which are of course more abundant than...
Hello PipAdder, good to see you here. Let me try to add my angle on this.

Just like you describe I try to identfy the longer term S/R levels from monthly charts down to hourly. During the morning session these mostly serve as profit-taking and potential reversal levels.

I also use short term charts, from 1 to 15 minutes, to identify the overnight S/R levels and the levels from the past couple of days.

These levels, and price action around them at certain points in time, give a strong indication of how the morning will unfold. Using these it is often possible to pinpoint your entry with a drawdown of only a handful of pips or so. These levels, together with the long-term levels, also serve as possible levels for profit-taking and re-entry, or adding to a trade if you are confident about it, as the morning unfolds.

This morning, for example, I would have identified 6171 as the key overnight level from a 1 minute chart, and in conjunction with the overnight pattern I would have identified it as a likely long entry point.

The important long-term level 6273 would have served as a target and possible entry point for reversal. For reversal I would have used the same observation as Islander - 5 min doji on retest. Also, the confluence with the MR2 levels strengthened that entry.

As to your final question, the short term levels I find reliable during the morning session and I do often enter without looking for confirmation or price action around them. I wouldn't do that, but for exceptions, during the NY session.
  • #640
  • Jan 28, 2010 12:14pm Jan 28, 2010 12:14pm
Quoting Islander
Excellent.....we all need to take a break....http://cdn.forexfactory.com/images/icons/icon6.gif
Thanks, but I would have preferred the break to have been yesterday morning...

Congratulations on another great day. See you tomorrow.
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