Islander and Medici trade the European open

A couple of threads to learn from:

http://www.forexfactory.com/showthread.php?t=86429

http://www.forexfactory.com/showthread.php?t=255586

Then take a look at the beginning of the thread.

ok thank a lot

You're welcome, and here's a good thread on Fibonacci levels:

http://www.forexfactory.com/showthread.php?t=50767

And to round off with pivots, and all the rest:

http://www.forexfactory.com/showthread.php?t=98028

hi medici, are you moving towards taking more m15 divergences vs. m5 divergences?

what is your approximate hit rate and avg R:R?

My current setup is to use LT charts, H1 - D1, at the start of the day to get the general situation and possible scenarios.

Then I take trades off the M1 with M15 and M5 as complements to keep the longer-term picture and levels in view, and the divergences serve as filters to filter out those trades that are not high probability or high R:R.


Generally speaking, this is the kind of thing, i.e. the personal aspect, that I don't want to get into detail about, and I don't think is of much benefit to you or anyone else.

Both parameters are trading style dependent. It can be better to have a lower hit rate but take more setups, thereby increasing your overall winnings.

The R:R, on the other hand, I think should be setup dependent. That is, each setup should be milked for what it's worth - anything else would add risk to your business. Takes some market knowledge, so you may want to go with a fixed number. I'd say 1:1.5 minimum.

If your question was about the setups and strategies described here, then I'd say that they are very high-probability, i.e. you can take a couple of trades a day and have a loser every couple of weeks or so. May not be the most optimal way to trade, though, as discussed above.

And the R:R, if you take only the good setups and use proper entry/exit could be about 1:3 or more if you trade £/$.

So, to summarise, you choose your hit rate based on goals and psychological make-up, and you optimise R:R based on market knowledge and understanding.

thanks for the reply, you and islander use the 20 sma and 30 ema in a similar manner correct?

also in the following screenshot, where would the best entry be (on the m1)? the break of the inside bar (rectangle) , a re-test of the level (triangle) or a LL + LH (elipse)

thanks!

I'm still playing with the cii and really loving it.

This trade was strictly divergence. I thought I held it too long but it never hit my stop which was pretty tight. I picked up 19 pips.

That last trade was not a good trade to make and I probably should not have posted it. It showed nothing of what Medici or Islander talk about other than divergence. It did get down near the sweetspot of x.xx80 but it was a counter trend trade and is not something a newbie should do and something I do way too often.

Divergence in action again Med, beautiful.

About the MAs, yes, even though it's always about price primarily and indicators second.

Not sure if I would enter at that time as the Asian session is coming to a close and there's bit of a lull until the European session gets started. Typically the best entries come around 7am UK time and sometimes 30-45 minutes before that. But IF I were to enter as suggested it would be off the resistance above it, i.e. the 61.8% level of yesterday's Asian session.

Nice isn't it, the M15 CI divergence? Says, in this case, "look for a long entry", and then you enter using your favourite entry technique - in your case a HL.

Whats the settings for the CI?

On the 15 and 5 min its the default settings, red line.

Morning Chaps,
No posts from me last week as i was on holiday, back at the pitface today and low and behold as soon as the screen was on, price outside BB, nice little divergence. a little late on the uptake so wasn't going to expect to much but 10 mins of pokerface and bingo! 14 for me and out!.

Hope some of you guys caught it or are still in on it

Doc.

Usual criteria presented itself, circa 15 for those paying attention, personally I missed it. Something tells me I shouldn't waste my time reading idle chit chat threads!!.

Where have our mentors gone???

Lesson learnt, paying attention now, had a look at eu and blow me down , triple trough regular divergence ,trade on - 13pips/5mins. result, might just have to get a lottery ticket today!!!

hey Dr nice trade just wondering if you have the BB's and CII set at standard setting?

Hey Doc nice to see someone posting.... Methinks something's afoot

Hi Karnivol.
As requested:

Cii - as attached.
BB's - period 100 , dev 2.

Regards

doc.

Morning,
Heres one I never have much confidence with so usually let them pass by.the sometimes difficult to spot hidden bullish divergence, never the less, gave it a go, got he jitters, pulled out with 5.