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  • #2,441
  • Jun 22, 2010 1:34am Jun 22, 2010 1:34am
Hi Folks.

Lets take a look at what the market is telling us this morning.

Frankfurt open at 07.00hrs BST Gbp/Usd who is in control of the market from the get go ?

Well the market moved lower at the open so we could say that sellers are in control, now as long as the price stays below this opening price we should look for sell opportunities.
However, as soon as the market breaks out above the opening price all shorts should be trimmed & we should now be looking for buy opportunities until the next market open at 08.00 BST.

It might be worthwhile investing in a book called "The Logical Trader" written by Mark Fisher, this covers opening range breakout trading.

Regards,


BabeFX.
  • #2,442
  • Jun 22, 2010 1:49am Jun 22, 2010 1:49am
thanks very much for your reply. I will be monitoring the UK open.

do you go for 120pips or nothing as it seems Tony does?

and would you say entries at the open with very small stops, going for these large pip numbers are fairly effective in general?
Limitation is a creation of the mind
  • #2,443
  • Jun 22, 2010 2:06am Jun 22, 2010 2:06am
ouch that would have hurt
Limitation is a creation of the mind
  • #2,444
  • Edited 7:36am Jun 22, 2010 2:30am | Edited 7:36am
Quoting schnitzeltra
thanks very much for your reply. I will be monitoring the UK open.

do you go for 120pips or nothing as it seems Tony does?

and would you say entries at the open with very small stops, going for these large pip numbers are fairly effective in general?
Hi schnitzeltra.

I vary my targets, but more importantly I always endeavor to move my stops to entry as soon as possible. I also endeavor to take at least a couple of pips profit from each winning trade. You will find that price often moves up to 20 pips in your favour & then does a quick about turn, sometimes I am able to snatch the best part of these 20pips at other times I will leave alone but ensure that I have locked in at least 2pips profit.

It goes without saying, that any method which gives small stops (losses) to large potential profits is going to be an effective method of trading.

Our two biggest enemies are "Fear & Greed" fear of incurring a loss will force us to use stops that are too large, it will also force us into waiting to long for confirmation of a breaking opportunity.

Greed can manifest itself in us trying for too bit a slice of the cake, often resulting in the market running back to our entry point & stopping us out at break even or worst still a loss.

Regards,

BabeFX
  • #2,445
  • Jun 22, 2010 2:51am Jun 22, 2010 2:51am
after 50 mins, I'm still floating on an initial entry right at the beginning of THE LONDON OPEN

GUYS, UNFORTUNATELY, I'm unable to reply to this thread because I'm very busy. Do not take it personal.
Attached Image (click to enlarge)
Click to Enlarge Name: london11.gif Size: 13 KB
Invest in alarm clocks
  • #2,446
  • Jun 22, 2010 3:01am Jun 22, 2010 3:01am
thanks BabeFX, makes good sense.

I currently trade 1 min charts with usually 1:1 1:2 risk/reward, so this is sounding very attractive with the large potential. I will keep monitoring, thanks for your time.
Limitation is a creation of the mind
  • #2,447
  • Jun 22, 2010 9:48am Jun 22, 2010 9:48am
Hi Folks.

Notice how the opening price often acts like a line in the sand. e.g. today's New York open. the Eur/Usd opened at 1.2265 market first moved away from this level & has now moved back down to make a re-test.

The re-test of the 1.2265 level has been repelled, price failing to put in a close below this level on a 1min chart. Simple observations like this should be noted & added to your arsenal of weaponry.


Regards,


BabeFX
  • #2,448
  • Jun 22, 2010 11:26am Jun 22, 2010 11:26am
There was also a nice 8 pip bar later on that signalled the clearing of a congestion area which demo'ed me a nice 80 pips, could have been more but i was happy.

Can I ask, with regards to the NY open, how do you enter? as the price moved down for the first few minutes and then came back up..how do you decide which way that is going to go?
Limitation is a creation of the mind
  • #2,449
  • Jun 23, 2010 5:51am Jun 23, 2010 5:51am
Quoting schnitzeltra
There was also a nice 8 pip bar later on that signalled the clearing of a congestion area which demo'ed me a nice 80 pips, could have been more but i was happy.

Can I ask, with regards to the NY open, how do you enter? as the price moved down for the first few minutes and then came back up..how do you decide which way that is going to go?
Hi Schnit

If you scroll back on a 5sec chart to 9.30 gmt today 23/06 you will see two large 10/15 pip candles which is where I always buy, these large candles represent where the central banks and hedge funds have placed their orders, NY is no different.

Hope this helps.
  • #2,450
  • Edited 6:18am Jun 23, 2010 6:03am | Edited 6:18am
hi morfisher,

thanks for your reply!

ok, i found the bar, my chart was playing up, can i ask what sort of confirmation you use with the these bars? and how many bars of confirmation do you look for? ..also what stops do you generally use? I assume you want these bars to be breaking some sort of level..ie todays broke up through the pivot and above the local bars.. just trying to clear this all up in my head and this appears to be a very powerful method of trading!

thanks once again
Limitation is a creation of the mind
  • #2,451
  • Jun 23, 2010 7:52am Jun 23, 2010 7:52am
Quoting schnitzeltra
hi morfisher,

thanks for your reply!

ok, i found the bar, my chart was playing up, can i ask what sort of confirmation you use with the these bars? and how many bars of confirmation do you look for? ..also what stops do you generally use? I assume you want these bars to be breaking some sort of level..ie todays broke up through the pivot and above the local bars.. just trying to clear this all up in my head and this appears to be a very powerful method of trading!

thanks once again

Hi schnitzeltra,

Lets re-cap in our minds the benefits of this method.

 

  1. Small stops

  1. Good reward to risk ratio

What we don't really have time for is over analyzing, trade of this impulse bar, but remember to use a relatively small stop.


Regards,

BabeFX.

  • #2,452
  • Edited 10:18am Jun 23, 2010 8:15am | Edited 10:18am
whats up this thread rocks

i'm more of a swing trader but today i thought i'd look at some 5 sec charts. i have my default position size at like $1.5 and stop at like 8 pips

i have 00s and 50s and daily pivot points and the day's open plotted

some big news today and maybe i'll get some practice on these small time frames

hey babefx i really like your avatar, this kind of trading seems like it could be just like the great american passtime

edit:

tried 8 pips a couple times, now set to 3, except oanda puts it at five so i'm assuming i'll have to move it manually after i place my order?

i'm very curious to see what small time frame (5sec) traders look for in price action. couldn't be candlestick patterns .. probably relating highs and lows and watching how price shimmys around significant levels?
  • #2,453
  • Jun 23, 2010 10:59am Jun 23, 2010 10:59am
I've been demoing this method for a while with varying success.

A factor that seems to vary somewhat between everyone is the size of SL. I feel Tony's recommended 2-4 pips is too small for me, I feel more comfortable with a stop somewhere around 6-10 pips. Of course this results in a proportionally smaller win.

Any thoughts?
  • #2,454
  • Jun 24, 2010 12:09am Jun 24, 2010 12:09am
Hi BabeFX,

thanks for that, those are two great key features of this strategy, im just trying to figure out more about entry, as im sure you well know if i delay entry to long, then i would not be in at an optimal price and my small stop will be getting hit everytime.. but obviously i want some sort of confirmation that this large bar is a valid setup to some degree. So I am basically trying to get a bit more insight to add to my observations, as to what others are doing in this regard who trade this strategy successfully..

thanks!
Limitation is a creation of the mind
  • #2,455
  • Jun 24, 2010 1:56am Jun 24, 2010 1:56am
Quoting schnitzeltra
Hi BabeFX,

thanks for that, those are two great key features of this strategy, im just trying to figure out more about entry, as im sure you well know if i delay entry to long, then i would not be in at an optimal price and my small stop will be getting hit everytime.. but obviously i want some sort of confirmation that this large bar is a valid setup to some degree. So I am basically trying to get a bit more insight to add to my observations, as to what others are doing in this regard who trade this strategy successfully..

thanks!...

Hi schnitzeltra.

It is no use trying to exactly follow others. Try this out using various sized stop losses, in Demo or Micro lots.

On the trading platform I use I can't place my stop as close to entry as Tony . I don't think I am as highly leveraged as Tony, this all helps.


Regards,


BabeFX.
  • #2,456
  • Jun 24, 2010 2:03am Jun 24, 2010 2:03am
Quoting Cabby
I've been demoing this method for a while with varying success.

A factor that seems to vary somewhat between everyone is the size of SL. I feel Tony's recommended 2-4 pips is too small for me, I feel more comfortable with a stop somewhere around 6-10 pips. Of course this results in a proportionally smaller win.

Any thoughts?
Hi Cabby.

Due to the trading platform I use I am unable to place stops as close as 2-4 pips to entry. However, this doesn't stop me manually closing out my trades if the market doesn't continue to follow the impulse candle.

Regards,


BabeFX.
  • #2,457
  • Jun 24, 2010 2:11am Jun 24, 2010 2:11am
Quoting frankkn
whats up this thread rocks

i'm more of a swing trader but today i thought i'd look at some 5 sec charts. i have my default position size at like $1.5 and stop at like 8 pips

i have 00s and 50s and daily pivot points and the day's open plotted

some big news today and maybe i'll get some practice on these small time frames

hey babefx i really like your avatar, this kind of trading seems like it could be just like the great american passtime

edit:

tried 8 pips a couple times, now set to 3, except oanda puts it at five so i'm assuming i'll have...

Hi frankkn,


One of the main attractions of this method is you don't have to spend hours over analyzing the market, just wait for the impulse bar, then press the trigger.

Don't Swing until the Ball is Pitched !


Regards,


BabeFX.
  • #2,458
  • Jun 24, 2010 5:51am Jun 24, 2010 5:51am
Hi guys,

I've been reading through this thread and getting the gist of how this system is traded etc. Yesterday I loaded up the 5 sec chart for both EU and GU on oanda and watched them yesterday for the first two hours of the new york session and today for the first two hours of the london session in accordance to the times that tony has posted on the first post.

I was just wondering if what i'm seeing is correct, it doesn't seem like we'll get a 8 pip bar on every session and that some sessions will see no trades. Because I didn't see any in the two sessions i've watched so far and I will keep watching them. I just wanted some of your guys' insights into this and as well your experiences using this system.

Another thing does anyone know if tony is gonna be coming or no.....

thanks
  • #2,459
  • Jun 24, 2010 6:12am Jun 24, 2010 6:12am
Quoting mannai70
Hi guys,

I've been reading through this thread and getting the gist of how this system is traded etc. Yesterday I loaded up the 5 sec chart for both EU and GU on oanda and watched them yesterday for the first two hours of the new york session and today for the first two hours of the london session in accordance to the times that tony has posted on the first post.

I was just wondering if what i'm seeing is correct, it doesn't seem like we'll get a 8 pip bar on every session and that some sessions will see no trades. Because I didn't see any in...

Hi mannai70,

If you have indeed read all the post's on this thread you will see that Tony
has changed his style.

Tony now trades from the open, and as far as can be made out he trades in the direction of the 1st 5second candle.

He was planning to update his trading style on page one of this thread. However, up to-date there is no sign of it.

A few post's back I think I mentioned something about the importance of the open & how price often respects this level.

Getting back to your point about not too many 8pip/5sec candles in each trading session. You have to be careful that when you see a 8/5 candle at a time other than the open, that it is indeed a candle trading off support or resistance, & not an exhaustion candle.

Quick fingers, quick brain, tight stops & sensible trade management should ensure profitable trading.

Not I feel a suitable method of trading for a beginner.


Regards,


BabeFX.
  • #2,460
  • Jun 24, 2010 6:25am Jun 24, 2010 6:25am
thanks for the reply and thanks for clearing that up.

so if I understand that correctly Tony basically enters in the direction of the first 5 sec candle during each of the london and new york sessions?

Now say for example you enter in the direction of the first 5 sec bar on the london session and your SL gets taken out, when will you enter again if you are going to? will it be back at the opening price level or something else?

thanks again
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