Islander and Medici trade the European open | Page 73 | Forex Factory

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Islander and Medici trade the European open

  • #1,441
  • Apr 22, 2010 1:47am Apr 22, 2010 1:47am
Closed my short at R1 / fast ema - the fast ema is still +ve

I like the idea of looking at EJ - but I've never tried to trade it, so have no idea about its patterns etc, so I'd appreciate any input......and I'll also have to do some research.....
Trading Levels with WRBs
  • #1,442
  • Apr 22, 2010 1:53am Apr 22, 2010 1:53am
Quoting Islander
Closed my short at R1 / fast ema - the fast ema is still +ve

I like the idea of looking at EJ - but I've never tried to trade it, so have no idea about its patterns etc, so I'd appreciate any input......and I'll also have to do some research.....
I've had good fun with it. I'll start posting opportunities when I spot them. Good for trading off 'levels', including your favoured pivots. I'll give it some thought and maybe post an introduction when I get the time.
  • #1,443
  • Apr 22, 2010 1:54am Apr 22, 2010 1:54am
Quoting medici
I've taken profit too. Loaded big down at the Asian high so good for today's target.

Btw, I suggest that we start following euro-yen here too. Technically easy to trade, i.e. lots of nice retracements such as down to yesterday's low at about 6.20 this morning, and good moves too. 50+ pips already this morning.
Seconded. I've been trading the EJ for a couple months with good success on the lower time frames. For the most part smooth, predictable moves and respects the areas it should. It was actually looking at Vantage's charts that caused me to take a closer look, and glad I did.
  • #1,444
  • Apr 22, 2010 2:01am Apr 22, 2010 2:01am
Quoting Auron112
Seconded. I've been trading the EJ for a couple months with good success on the lower time frames. For the most part smooth, predictable moves and respects the areas it should. It was actually looking at Vantage's charts that caused me to take a closer look, and glad I did.
I noticed that EyeVoltage in the old Psych Levels, Pivots and Trendlines thread changed to EJ and as you say V also trades it. I used to trade GJ, but the wide spread and whiplash moves were too much for a whiteman....http://cdn.forexfactory.com/images/icons/icon11.gif
Trading Levels with WRBs
  • #1,445
  • Apr 22, 2010 2:02am Apr 22, 2010 2:02am
Hi,

With EJ does the regular flow of news at this time from European countries cause spikes ?

Some days it seems every 30 mins a bit more news comes out. That is why I haven't had a look before, at least with GU I get two hours of news free trading.

I have noticed that German news seems to have the most impact, which is logical as it would be the biggest economy I think.
Money grows on the tree of persistence
  • #1,446
  • Apr 22, 2010 2:02am Apr 22, 2010 2:02am
Quoting medici
I've had good fun with it. I'll start posting opportunities when I spot them. Good for trading off 'levels', including your favoured pivots. I'll give it some thought and maybe post an introduction when I get the time.

Excellent.....
Trading Levels with WRBs
  • #1,447
  • Apr 22, 2010 2:05am Apr 22, 2010 2:05am
Quoting Auron112
Seconded. I've been trading the EJ for a couple months with good success on the lower time frames. For the most part smooth, predictable moves and respects the areas it should. It was actually looking at Vantage's charts that caused me to take a closer look, and glad I did.
That's great. You seem to have made the same observations. So let's get it going.

Good ranges too. 60 pips so far this morning vs 45 for cable.
  • #1,448
  • Apr 22, 2010 2:12am Apr 22, 2010 2:12am
Quoting Islander
I noticed that EyeVoltage in the old Psych Levels, Pivots and Trendlines thread changed to EJ and as you say V also trades it. I used to trade GJ, but the wide spread and whiplash moves were too much for a whiteman....http://cdn.forexfactory.com/images/icons/icon11.gif
Euro-yen brings the good things about sterling-yen, but without those downsides. Tight spread and smooth as a peach most of the time.
  • #1,449
  • Apr 22, 2010 2:20am Apr 22, 2010 2:20am
Accumulation above yesterday's low which was also this week's open - note the way levels are adhered to.

Nice retracement down to that level before take-off around 6.20. And then a 7am retracement for entry if you missed the first one.

Target at the 38.2% retracement of last week's drop at 124.88. 124.85 is today's pivot.
Attached Image(s) (click to enlarge)
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  • #1,450
  • Apr 22, 2010 2:21am Apr 22, 2010 2:21am
I sold after the LH after LO....the broker that I use for volumes has lost connection several times, so I'm missing good data....

Edit: my last post on cable for now so that we can concentrate on EJ.....IF the slow ema turns negative it will confirm shorts.....
Trading Levels with WRBs
  • #1,451
  • Apr 22, 2010 9:16am Apr 22, 2010 9:16am
Quoting Islander
Those of us that have read the book that Medici recommended will have noticed the follow on fall after Fridays afternoon action......good for 40 or so pips, although IF I'd been thinking about this trade, I would have sold earlier off the falling 5m 30 ema.....http://cdn.forexfactory.com/images/icons/icon12.gif
Hi Islander and Medici I have been reading back through the thread and saw this post but couldn't seem to find a post saying what book was being recommended. Was it beat the forex dealer or a different one? If so could you please tell me what one.

Thanks
  • #1,452
  • Apr 22, 2010 11:17am Apr 22, 2010 11:17am
Quoting reflex
Hi Islander and Medici I have been reading back through the thread and saw this post but couldn't seem to find a post saying what book was being recommended. Was it beat the forex dealer or a different one? If so could you please tell me what one.

Thanks
It's Beat The Forex Dealer, i.e. the one I recommended to you earlier.
  • #1,453
  • Apr 22, 2010 11:44am Apr 22, 2010 11:44am
Firstly Id like to say thanks to all the contributors here its a wonderful thread and a pleasure to read.

Since its states that in your 20 years of experience only 4 of them have been in FX, I presume you have experience in options aswell.

If so then are you still trading options?

Are you using them to speculate on GU,EU etc?

I would be interested to hear your insights on options aswell
The greatest force on earth is compound interest.
  • #1,454
  • Apr 22, 2010 12:51pm Apr 22, 2010 12:51pm
Quoting sebastionay
Firstly Id like to say thanks to all the contributors here its a wonderful thread and a pleasure to read.
Glad to hear

Quote

Since its states that in your 20 years of experience only 4 of them have been in FX, I presume you have experience in options aswell.

If so then are you still trading options?

Are you using them to speculate on GU,EU etc?

Correct. I'm sure Islander and others have their own stories; here's mine:

Buying vanilla options has never appealed to me. You're paying for time premium that you're not getting back. Better to construct the same position using the underlying. Of course, you can trade options profitably buying far out-of-the-money options and make a killing every once in a while - compensating the many small losses. Very far from my taste.

So my option trading has been about selling volatility, and betting on exotics. I sold fx volatility profitably until the summer of 07, after which the only sensible thing to do was to buy volatility - the old strategies got too risky and buying volatility was the thing to do given the changing market conditions.

So we're back full circle - I don't buy options, so spot it'll have to be. With the leverage in fx markets there is really no need for options for the small scale speculator, i.e. for us who can exit a position without moving the market. And the way of trading shared in this thread fits my personality like a glove - no more options for me.

And with the current global instabilities and imbalances I am sure the fx markets will continue to be a goldmine for many years to come.

Hope that makes sense.
  • #1,455
  • Apr 22, 2010 1:53pm Apr 22, 2010 1:53pm
Just passing by and noticed the activity.....

I totally agree with Medici's take on the use of options - another great post...http://cdn.forexfactory.com/images/icons/icon14.gif

Options were my first move into derivatives from stocks and shares and I soon discovered the difficulty of actually making any money by buying them....the time decay and spreads make this almost impossible - certainly for any close timewise to expiration.

However, I did make a good living for a couple of years running a trading program for a wealthy retired businessman based on selling (writing) way out-of-the-money index options.

During this time I introduced the idea of selling (writing) fully covered options on major stocks to one of my family. Since he moved as far away as possible - "Down Under" - this has become a major source of his income. IMO this is THE best way to use options.

Once I got to know my way round the futures markets I had no further need to use options and I've never used them on currencies.
Trading Levels with WRBs
  • #1,456
  • Apr 22, 2010 3:17pm Apr 22, 2010 3:17pm
Did you hear about the goldman sachs put's last week?
The greatest force on earth is compound interest.
  • #1,457
  • Apr 22, 2010 3:45pm Apr 22, 2010 3:45pm
Quoting sebastionay
Did you hear about the goldman sachs put's last week?
I suppose you mean the puts on Goldman stock expiring last week? Yes, heard about those. Which brings up the topic of option trading close to expiry. For those interested, Jeff Augen has written some interesting books relating to that, for example Day Trading Options at Expiration.
  • #1,458
  • Apr 22, 2010 3:58pm Apr 22, 2010 3:58pm
Quoting medici
I suppose you mean the puts on Goldman stock expiring last week? Yes, heard about those. Which brings up the topic of option trading close to expiry. For those interested, Jeff Augen has written some interesting books relating to that, for example Day Trading Options at Expiration.
Yeah thats exactly what I meant Thanks for that medici.

Ive been reading options demystified which seems good but Ive been alot more interested to read about the specifics of trading close to expiry after that goldman news, will check it out.
The greatest force on earth is compound interest.
  • #1,459
  • Apr 23, 2010 12:59am Apr 23, 2010 12:59am
GM - the fast drop early in the Asian Session was on low volume and stopped at S1. Four hours later there was a HL at the 5325 level which gave a 55 pip rally back up to the Days Open level at 5378.

I waited after price turned off the DOL and then sold the 1 min LH, exiting after the small red candle that followed the wider red marubozo - this was the 50% retrace.

Interesting to see that € didnt fall and is in fact still above its rising slow ema....

So far EJs been in a narrow range around its 123.50 level since its early drop
Trading Levels with WRBs
  • #1,460
  • Apr 23, 2010 1:19am Apr 23, 2010 1:19am
Hi Islander,

Just looking at the volume, seems to be a lot higher today so far.

Must be something going on

Caught the retrace back down after FO so in front on the day so far, getting better at this ( thanks to you and medici, with a little bit of vantage stuff tossed in)

PS See it bounced off S1, we may see the DP after LO
Money grows on the tree of persistence
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