Quite an interesting view on monthly chart. Not so precise touches on the left side, but the triangle looks good to me so far. This consolidation has been due nearly 12 months by now. So perhaps a huge diamond later on
Igrok Method. Q's & A's. Comments, thoughts and ideas
- #6,141
- Edited 4:04am Sep 6, 2010 3:51am | Edited 4:04am
- Joined Sep 2007 | Status: gone fishing | 5,782 Posts
- #6,157
- Sep 10, 2010 1:44pm Sep 10, 2010 1:44pm
- Joined Aug 2007 | Status: Trader | 3,135 Posts
Measure twice, cut once
- #6,158
- Edited Sep 12, 2010 2:50pm Sep 11, 2010 9:41pm | Edited Sep 12, 2010 2:50pm
In "Currency Trader" 08.2010 is an interesting article "Asian Pattern, European Trade' by Daniel Fernandez.
As for me, this pattern can help to decrease risk in use template 18.2, and, especially, 18.3.The system might be applicable to currency pairs, have non-volatile Asian sessions - EUR/GBP, EUR/CHF, USD/CHF, GBP/USD, GBP/CHF, EUR/USD(tested).
In brief:
Strategy:
Use the Asian session, but trade outside of it
In this case, when an “average” Asian session occurs, there appears to be a significant tendency for price to subsequently trend (during the European session) in the opposite direction of the Asian session. This is especially true when the move from the previous Asian session’s close and the current Asian session’s close is in the same direction as the current Asian intra-session movement.
These tendencies lay the foundation for a system that uses the definition of an average Asian session — identified in the previous analysis — to profit from the subsequent moves during the forex trading day.
The system
enters a long trade when:
1. The Asian session’s net movement (open – close) is negative;
2. The close of today’s Asian session is below the close of yesterday’s Asian session;
3. The Asian session’s net movement is between 20 and 30 percent of the 14-day ATR.
Similarly, short trades are entered when:
1. The Asian session’s net movement is positive;
2. The close of today’s Asian session is above the close of yesterday’s Asian session;
3. The Asian session’s net movement is between 20 and 30 percent of the 14-day ATR.
As for me, this pattern can help to decrease risk in use template 18.2, and, especially, 18.3.The system might be applicable to currency pairs, have non-volatile Asian sessions - EUR/GBP, EUR/CHF, USD/CHF, GBP/USD, GBP/CHF, EUR/USD(tested).
In brief:
Strategy:
Use the Asian session, but trade outside of it
In this case, when an “average” Asian session occurs, there appears to be a significant tendency for price to subsequently trend (during the European session) in the opposite direction of the Asian session. This is especially true when the move from the previous Asian session’s close and the current Asian session’s close is in the same direction as the current Asian intra-session movement.
These tendencies lay the foundation for a system that uses the definition of an average Asian session — identified in the previous analysis — to profit from the subsequent moves during the forex trading day.
The system
enters a long trade when:
1. The Asian session’s net movement (open – close) is negative;
2. The close of today’s Asian session is below the close of yesterday’s Asian session;
3. The Asian session’s net movement is between 20 and 30 percent of the 14-day ATR.
Similarly, short trades are entered when:
1. The Asian session’s net movement is positive;
2. The close of today’s Asian session is above the close of yesterday’s Asian session;
3. The Asian session’s net movement is between 20 and 30 percent of the 14-day ATR.
