This trade was confirmed by the higher time frame (1Hr). Notice on the 15M how the RSI (black line) crossed the Market Base Line (Dodger Blue). This signifies a trend change on the 15M time frame. The divergence on the 1Hr time frame confirms the upward bias.
I wanted to be out of this trade before the CAD news at 7:30. Targets were just hit 15 minutes ago.
[font=Calibri][size=3]This trade was confirmed by the higher time frame (1Hr). Notice on the 15M how the RSI (black line) crossed the Market Base...
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Thanks for posting that dgcinc. Brilliant. This suggests to me that If you don't see any trades on the higher time frames you then look at lower ones. Would that be correct?
QUOTE]Thanks for posting that dgcinc. Brilliant. This suggests to me that If you don't see any trades on the higher time frames you then look at lower ones. Would that be correct?[/quote]
For a counter trend trade with such strong downward pressure, I use the smaller time frames.
We know after a long impulse move such as the run down on the EUR crosses, the market will bounce. We can use pivots or fibs to get a range for that bounce. Clearly this is a counter trend approach. For me to trade counter trend, I need additional confirmation. This time it was provided on the 1 HR.
Knowing news creates volatility and the window for the bounce is limited, I look for a trade on the 15M chart to take advantage of the bounce and the set up while being aware of the news. Had Target 2 not closed on its own at my designated take profit, I would have closed the trade before the news.
I only use this technique with one or two pairs. It is all I can observe and manage with any accuracy and consistency. Notice that the signal on the 15M chart met the criteria as laid out throughout the thread.
dcjinc,
Appreciate your sharing and trading insights here.
This comment got my attention' "I only use this technique with one or two pairs. It is all I can observe and manage with any accuracy and consistency."
I've looked back over your posts for a mention of the pairs that you monitor without success. Would you please list those pairs and maybe the relevance of importance you place on them?
Thanks much...
Cliff
During normal trading hours and normal setups, I monitor an 8 pair portfolio. As I mentioned previously, the 4 majors and E/J, G/J, NZD/USD and USD/CAD. I would not say that any of them are unsuccessful. Any pair that provides a valid trade signal is a viable pair. I can only mentally assimilate and observe 8 for 1 Hr and 4 HR trend trading, and 2 for scalp counter trend. Otherwise I lock down from sensory overload. When employing the counter trend technique I just described, I only concentrated on the EUR/USD and the EUR/JPY from the previous downward impulses. This technique will work on any pair in any market, as long as you have the higher time frame confirmation. EUR/USD consistently has the highest volume and volatility, so it is where I look first.
For a counter trend trade with such strong downward pressure, I use the smaller time frames
Knowing news creates volatility and the window for the bounce is limited, I look for a trade on the 15M chart to take advantage of the bounce and the set up while being aware of the news. Had Target 2 not closed on its own at my designated take profit, I would have closed the trade before the news.
[font=Calibri][size=3]I only use this technique with one or two pairs. It is all I can observe and manage with any accuracy...
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Thanks for your post DCGINC. They are really informative. I am trying to do something similar. I wait for a retrace after a big move down and switch to lower timeframes, even down to the 5 min chart. Use a very small stop though as trying to pick the top can be a bit difficult. I get my stops to B/E ASAP too. It can be very lucrative using this method. See attached charts.
Now up +55 on E/U and +22 on G/U
Thanks again Big E and all the experienced guys for the help on this thread.
Attached Image(s) (click to enlarge)
Short Euro and remaining that way. That's just the way it is !
