Did not take it. 1.4488 to 1.4495 was full of candles (junk in the trunk).
Did go for sub & entry prior to 123, and bailed when it started to jet back down. When price made the 123, decided against it because of previous rejection at resistance area.
My question is what made this trade so attractive?
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diamond,
I decided early in the session I wasn't going to take any shorts against the overall trend so I was looking for the div. 123. Saw the divergence forming about an hour earlier and then this was the first 123 setup.
roll out the barrels we'll have a barrel of fun at target
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Been following this thread for a little over a week now. Thanx Mr D. for this great thread and thanx for the assistance of all the excellent traders here. Nice to learn from a bunch of vry knowledgable & generous of people here.
Mr D. i paper traded the 123 long on EUR this morning at 1435. Nice trade if dat is the 123 long you were referin ta. The only minus I saw with the set up was dat da divergence didnt occur at a previous swing level support.
Here is a 5 M GU chart. Shrink the chart down and you can see why it was such a tough day trying to trade this pair. See the last big swing on the left hand side of the chart. Now look at all of the price action for Wednesday. All of it is contained within that swing. Now Price can't go higher or lower until it breaks that big swing so keep that in mind.
Not exactly Iambic Pentameter but give me a few more years and Shakespeare look out.
Major screw up on this trade.
• When SUB is not surpassed by bar following it, then the bar following it becomes the SUB.
• If the SUB is MORE than 2.4 pips away from 10 sma, NO TRADE
Which is exactly what I didn't do.
Well, it's off to the tattoo parlor to get the 2.4 pip rule permanently engraved on my mouse finger...
when sub is not taken out and next bar is away from sma by more than 2.4 pips you need to wait for pullback which it did then next bar closed above became sub
Here is an EU trade I took short for 30 pips. I think I had the SUB correct. The down bar was so strong I just left it go to see where it would end up. Got lucky and made some nice pipage.
diamondd, dont feel bad, i went long against what i was seeing. This thing hasnt cracked 4519 or so in over a year..in the grand scheme of things on the weekly chart this is just a pullback in the uptrend but from what i'm looking at that pullback could go back to 4300 or less before heading up.
granted i'm really new at this so ya know take it with a grain of salt. I'd love to hear more experienced traders thoughts on it.
when sub is not taken out and next bar is away from sma by more than 2.4 pips you need to wait for pullback which it did then next bar closed above became sub
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It took me a while but I did figure that out.
So now to the important stuff, how did you like my Poem?
i know this was after the finish bell, but would this be a valid short to take even though we are in an uptrend. once it broke thru the 4480 level it tested it 2x and then gave a setup bar, are these valid counter-trend trades or do we need div 123, to go counter?
i know this was after the finish bell, but would this be a valid short to take even though we are in an uptrend. once it broke thru the 4480 level it tested it 2x and then gave a setup bar, are these valid counter-trend trades or do we need div 123, to go counter?
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To my understanding, we take no countertrend trades with out both divergence & a 123. The retest, which was there, is important as well.
What I'm finding out is that if we hold out for the "Perfect Storm" trades, we may have to wait awhile, but we will spend much less time collecting debt.
