Islander and Medici trade the European open | Page 139 | Forex Factory

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Islander and Medici trade the European open

  • #2,761
  • Sep 2, 2010 12:07pm Sep 2, 2010 12:07pm
Interesting video on The Fed. What is it? Who does it answer to?

http://video.google.com/videoplay?do...6891691870450#
  • #2,762
  • Sep 2, 2010 3:12pm Sep 2, 2010 3:12pm
Here's a thought inspired by Darren's question and Vantage's comments earlier about M15 and higher time frames.

I have been doing a very small bit of thinking and research and come to the tentative conclusion that trading CI divergence with M15 as primary time-frame could be a good idea.

My 'breaktrough' in fx was with support/resistance trading off H1 and M15 charts with M5 as a smaller time-frame to zoom in to when close to a level.

Then I put that together with what I had learned earlier from a very experienced trader about the London Open, and the result was what is posted at the beginning of this thread.

So I like trading 'off levels' very much and I am attracted by the idea of M15 as the primary time-frame instead of M5 and zooming in to M5 only close to a level.

Will be researched further, but it seems like a viable way to trade intraday, catching most of the action. Illustration using today's cable action attached.

Last but not least - a conclusion from more evidence than the chart below - it seems like the M15 opportunities typically are worth more pips than the M5 ones...not to mention that they are higher probability. So, Darren, you may only need to do one trade a day to get your 30!


Comments and suggestions welcome!
Attached Image (click to enlarge)
Click to Enlarge Name: cable m15 2 sept.gif Size: 28 KB
  • #2,763
  • Edited 4:54pm Sep 2, 2010 4:42pm | Edited 4:54pm
H4
actually , why not on every TF ...?

Quoting medici
Last but not least - a conclusion from more evidence than the chart below - it seems like the M15 opportunities typically are worth more pips than the M5 ones...not to mention that they are higher probability.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu h4 div.jpg Size: 94 KB
Click to Enlarge Name: eu d1 div.jpg Size: 115 KB
  • #2,764
  • Sep 2, 2010 4:44pm Sep 2, 2010 4:44pm
Quoting david4u
H4
actually , why not on every TF ...?
Good point, David, and useful for detecting when you should hold on to your position for a few days or weeks...but less useful for intraday trading. But, yes, I look at divergences on all time-frames - now also daily after Vantage's notice on that.
  • #2,765
  • Edited 11:34pm Sep 2, 2010 4:45pm | Edited 11:34pm
Here's a good article on how to trade divergences:

http://www.babypips.com/school/divergence_trading.html
  • #2,766
  • Sep 2, 2010 4:59pm Sep 2, 2010 4:59pm
Quoting medici
Perhaps because of the big news tomorrow (NFP) and a big move yesterday...maybe people play it safe ahead of NFP.

Thanks for chart What settings do you use for CII on the M1?

Thanks again.
medici,settings are default - hope thats not too great a disappointment!!. go on - tell me you have a secret optimization for m1??

regards

doc.
  • #2,767
  • Sep 2, 2010 5:05pm Sep 2, 2010 5:05pm
Quoting Dr.Scalpall
medici,settings are default - hope thats not too great a disappointment!!. go on - tell me you have a secret optimization for m1??

regards

doc.
Haha, no! But it has been my impression that CI on M1 gives too early signals, and I have tried multiplying all parameters by five, i.e. essentially emulating CI on M5. That wasn't satisfactory either, and my preferred M1 divergence indicator is with EMAAngleZero(30, 0.8, 6) as researched by Islander.
  • #2,768
  • Sep 3, 2010 2:19am Sep 3, 2010 2:19am
Best to be had this slow morning...also divergence if you connect the lows...
Attached Image (click to enlarge)
Click to Enlarge Name: cable m15 3 sept.gif Size: 27 KB
  • #2,769
  • Sep 3, 2010 2:26am Sep 3, 2010 2:26am
Hey

Medici still enjoying the thread have to say what a great resource "Babypips" is I don't think it gets the credit it deserves
  • #2,770
  • Sep 3, 2010 2:40am Sep 3, 2010 2:40am
Quoting Eamonn
Hey

Medici still enjoying the thread have to say what a great resource "Babypips" is I don't think it gets the credit it deserves
Glad to hear

On babypips, it's an honest place for the basics, and good at providing that, I think.
  • #2,771
  • Sep 3, 2010 3:07am Sep 3, 2010 3:07am
And the continuation...
Attached Image (click to enlarge)
Click to Enlarge Name: cable m5 3 sept.gif Size: 29 KB
  • #2,772
  • Sep 3, 2010 3:26am Sep 3, 2010 3:26am
Quoting medici
And the continuation...
Hi Medici

Just wondering how are you timing your entries?

I saw the divergence on the 15 minute chart, so I went in, maybe a bit too soon, or my stop loss is too small, I just set a 10 pip stop loss and a 10 pip take profit as I practice this method.

Of course my stop was only just touched as the market continued up. This has happened a few times to me now, so just wondering how are you entering? Are you entering at market or do you do entry orders based off your resistance lines? Or break out of 5-15 minute bars? Do you enter in with a much wider stop? I think I read earlier in the journal, Islander enters in with a 50 pip stop?

I appreciate all the knowledge you've been sharing in this thread, I just hope to be able to read the charts half as well as you and Islander in the future.

Cheers
furble
  • #2,773
  • Sep 3, 2010 4:11am Sep 3, 2010 4:11am
Quoting furble
Hi Medici

Just wondering how are you timing your entries?

I saw the divergence on the 15 minute chart, so I went in, maybe a bit too soon, or my stop loss is too small, I just set a 10 pip stop loss and a 10 pip take profit as I practice this method.

Of course my stop was only just touched as the market continued up. This has happened a few times to me now, so just wondering how are you entering? Are you entering at market or do you do entry orders based off your resistance lines? Or break out of 5-15 minute bars? Do you enter in with...
Good question. You want to enter early to be able to have a tight stop that won't be touched.

I enter off levels, so on that M15 chart this morning, you see a first M15 candle with a visible lower wick, i.e. buying going on. Then I would enter at the level/low or as close to that as possible with a 10-15 pip stop depending on PA.

That Islander 50 pip stop is in case of power cuts etc. I don't think he ever lets a trade go more than 15 pips against him, and neither do I.
  • #2,774
  • Sep 3, 2010 4:14am Sep 3, 2010 4:14am
Quoting furble
I think I read earlier in the journal, Islander enters in with a 50 pip stop?
As far as I remember, Islander has that as an emergency stop in case of disconnection etc., but he said his average stop is 10-15 pips.
  • #2,775
  • Sep 3, 2010 4:14am Sep 3, 2010 4:14am
Oops, was posting at the same time
  • #2,776
  • Sep 3, 2010 5:28am Sep 3, 2010 5:28am
Ah, somebody just gave the thread its first one star rating! We should perhaps close the shop
  • #2,777
  • Sep 3, 2010 5:44am Sep 3, 2010 5:44am
Quoting medici
Ah, somebody just gave the thread its first one star rating! We should perhaps close the shop
Don't you dare!

Just loving the snippets of information which are all adding to the big picture. Your description of the M15 candle with the lower wick this morning was another lightbulb moment.
  • #2,778
  • Sep 3, 2010 5:48am Sep 3, 2010 5:48am
Quoting Delite
Don't you dare!

Just loving the snippets of information which are all adding to the big picture. Your description of the M15 candle with the lower wick this morning was another lightbulb moment.
Ok, will try to keep it up then

Yes, I've heard the same thing from others about that post. You can see the same thing on the M5 during the retrace after the news drop. M5 candle with substantial wick together with CI div signifying that the retrace was over.
  • #2,779
  • Sep 3, 2010 5:56am Sep 3, 2010 5:56am
It all sounds so simple when its pointed out! Lets see what the NFP numbers bring this afternoon!
  • #2,780
  • Sep 3, 2010 6:01am Sep 3, 2010 6:01am
Quoting Delite
It all sounds so simple when its pointed out! Lets see what the NFP numbers bring this afternoon!
Can't wait...will be interesting after all the positive US data. And ADP was spot on, so something similar to or better than forecast and there will probably be a nice rally. TWT.
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