Bounce 'N' Break
Although I have been trading for a while I am relatively new to the following systems.
Please note the systems used here are MY INTERPRETATION of systems that have been banging about in the EUR/USD thread for a while. The main contributors/instigators of the systems are CLOGGIE and GLENEAGLES.
Both the systems are short term trading styles and closely follow PA (price action) the names these systems seem to have adopted within the EUR/USD forum are "river box" and "dustbin trades" as my systems are not exactly the same as the above mentioned I will refer to them as RB(river box) and DBT(dustbin trades).
I will explain the settings for each and display a few examples shortly but the hardest part of this system in my opinion is whether to play the bounce or the break (hence the thread name).
It will take many hours in front of the screen and various other support and resistance skills to help you consistently make the correct (higher percentage) choice.
RB SYSTEM
This as I said is PA based, I basically use a 5 min chart to determine the areas that price is bouncing between and then playing the bounce or break of those areas.
A particular area of concern with this system is FAKE OUTS especially around the 7am and 8am time, because of this I look to take smaller profits, wait for the price to settle back down again and play again.
As you can see today would have been a very profitable break on the EUR/USD, this is one I played however my pip target is usually around the +40 pips SL on this would have been just above the other side of the box (roughly -30 pips on this trade).
As mentioned above around 7am & 8am time London open can create FAKE OUTS this is the reason why my TP is relatively low, it looks like a bad idea on today's trade but on the whole I find it beneficial.
As you can see there are 4 blue boxes on my chart today, I didn't take the 2nd one as my initial trade was still open, I did however take the 3rd and the 4th. You will also note that more boxes could have been drawn and also that I did not play the break up from the 4th box. I am not always at my screen so will not always be playing every possible box break, sometimes I am still in a trade either a RB trade or potentially a DBT which means I am not looking to enter and double my risk. I did not enter the break north from the 4th box due to today's PA the more you watch the screen the better sense you will get of this, I had already made my quota for the day and did not fancy taking a break against the daily trend, however when the continuation presented itself I took it. 80 pips generally works out as 2% for me so on the EUR/USD today I have closed 3% (3 X 40 pip trades)
DBT SYSTEM
This is an even quicker system looking to get in on quick moves looking on the 5 min chart I assess the PA to determine today's levels (note these do not necessarily change every day). I apply an EA to the chart which creates horizontal lines a certain pips apart
GPB/USD
GAP: 30 SL: 30 TP:20
EUR/USD
GAP:20 SL: 20 TP:12
USOIL
GAP: 35 SL: 35 TP:25
(please not the white lines on the chart are only rough they are not 100% accurate)
As you can see from the chart above after Friday's massive drop I have only shorted USOIL today, initially this morning I played the break of 95.14 but 3 times later in the day I played the bounce of 95.14 I chose to ignore the break of 94.79 and 94.44 and also the massive break north up to and above 95.84 after that failed and continued to fall once again I replayed the break of 95.14
Today's profit on USOIL = 125 pips (5 x 25).
I do not trade around news times !! Occassionly I find myself dragged into them because the Price hasn't moved quick enough, if I am in profit I take it regardless of what it is, if negative I consider closing but if not ensure my SL is close enough to minimise potential damage.
Although I have been trading for a while I am relatively new to the following systems.
Please note the systems used here are MY INTERPRETATION of systems that have been banging about in the EUR/USD thread for a while. The main contributors/instigators of the systems are CLOGGIE and GLENEAGLES.
Both the systems are short term trading styles and closely follow PA (price action) the names these systems seem to have adopted within the EUR/USD forum are "river box" and "dustbin trades" as my systems are not exactly the same as the above mentioned I will refer to them as RB(river box) and DBT(dustbin trades).
I will explain the settings for each and display a few examples shortly but the hardest part of this system in my opinion is whether to play the bounce or the break (hence the thread name).
It will take many hours in front of the screen and various other support and resistance skills to help you consistently make the correct (higher percentage) choice.
RB SYSTEM
This as I said is PA based, I basically use a 5 min chart to determine the areas that price is bouncing between and then playing the bounce or break of those areas.
A particular area of concern with this system is FAKE OUTS especially around the 7am and 8am time, because of this I look to take smaller profits, wait for the price to settle back down again and play again.
As you can see today would have been a very profitable break on the EUR/USD, this is one I played however my pip target is usually around the +40 pips SL on this would have been just above the other side of the box (roughly -30 pips on this trade).
As mentioned above around 7am & 8am time London open can create FAKE OUTS this is the reason why my TP is relatively low, it looks like a bad idea on today's trade but on the whole I find it beneficial.
As you can see there are 4 blue boxes on my chart today, I didn't take the 2nd one as my initial trade was still open, I did however take the 3rd and the 4th. You will also note that more boxes could have been drawn and also that I did not play the break up from the 4th box. I am not always at my screen so will not always be playing every possible box break, sometimes I am still in a trade either a RB trade or potentially a DBT which means I am not looking to enter and double my risk. I did not enter the break north from the 4th box due to today's PA the more you watch the screen the better sense you will get of this, I had already made my quota for the day and did not fancy taking a break against the daily trend, however when the continuation presented itself I took it. 80 pips generally works out as 2% for me so on the EUR/USD today I have closed 3% (3 X 40 pip trades)
DBT SYSTEM
This is an even quicker system looking to get in on quick moves looking on the 5 min chart I assess the PA to determine today's levels (note these do not necessarily change every day). I apply an EA to the chart which creates horizontal lines a certain pips apart
GPB/USD
GAP: 30 SL: 30 TP:20
EUR/USD
GAP:20 SL: 20 TP:12
USOIL
GAP: 35 SL: 35 TP:25
(please not the white lines on the chart are only rough they are not 100% accurate)
As you can see from the chart above after Friday's massive drop I have only shorted USOIL today, initially this morning I played the break of 95.14 but 3 times later in the day I played the bounce of 95.14 I chose to ignore the break of 94.79 and 94.44 and also the massive break north up to and above 95.84 after that failed and continued to fall once again I replayed the break of 95.14
Today's profit on USOIL = 125 pips (5 x 25).
I do not trade around news times !! Occassionly I find myself dragged into them because the Price hasn't moved quick enough, if I am in profit I take it regardless of what it is, if negative I consider closing but if not ensure my SL is close enough to minimise potential damage.
