Using the DASR for successful trading

I think that this is a time to stress this point. With our system we want to trade AWAY from our DASR. If price refuses to play ball, we don't CHASE!!

I think that a really important thing to remember is that at all costs we have to protect our trading balance. If we don't take the trade we haven't lost anything!

Only ever take HIGH PROBABILITY - LOW RISK trades!!

And what I like about this system is because we are ONLY trading around the DASR, we can always set our SL on the OTHER SIDE of the DASR which is usually not more then 20 - 25 pips. Also what is great about trading away from the DASR, very often price action moves very quickly when it's going away from the DASR which means that we're in credit very quickly - no big draw-down!

rgds

I am demo trading ,pending EUR-JPY at 1.2720,stop loss set at 1.2740,i se t my profit to 1.2640. Regarding the take profit ,Jerry what your seggestion?

Well I see EURUSD has shot though our 4hr DASR and banged against fib support at 12716.

As I said if price is nicely below DASR at start of 3.00pm candle we could take the trade!


P.S. I hope that you are only demo trading this system at the moment!!

Hi Irene

Don't you mean EURUSD? Anyway SL should be around 12735 I would say.

I would have waited for start of 3.00pm 4 hour candle before getting in. I'll tell you why next post.

Sorry, I would leave TP open because we may be going down a long way! You can track your trade once it's well in profit using DASR on lower time frames!

rgds

Have to go to bed,pacific hour ,just leave the trade run.may take out my stop loss,bcs now jump up and down.

yes EURUSD,wrongly type

Guys I opened a sell trade on GBPUSD because it broke through BRN and fib support around 15347

Irene asked me where to put her SL and I said that because EURUSD is in such a huge downtrend we have the right to expect a lot of pips!

So what you can do is track your trade using the DASR on LOWER TIME FRAMES
You can see this clearly on GBPUSD 15 min and 5 min charts below. It was the afternoon of 11th January. See how price often retraced back to the DASR on these lower time frames but never broke through? Well, we could use that opportunity to open new trades (especially if we are still looking for a good entry point in the first place!) or to track our existing trade. Obviously we keep our trade open until price breaks through the DASR preferably on the 5 min chart!

rgds

Well looks good for 3.00pm bar! See how it shot back to test our DASR resistance level!!

Well now you can see why I did this as a "trading journal"!

I really need input from fellow traders and I was wrong but Irene was correct in putting her SL at 12740!

Very important though track your trade once opened on lower time frame or even go down to the lower time BEFORE you open your trade as like today price retraced right back to 12735 then you can if you want - open your trade at the OPTIMAL moment

rgds

Set a pending sell on G/U at 1.5347, opened and dropped down to 5 min tf, nicely under DASR on both 5 and 15 min tf, slight retrace but nothing too hectic, bouncing off vegas daily 1 hr on 15min tf interesting

Tom (UK)

Well, there you go - as I mentioned from the outset, this is NOT the "holy grail"!

EURUSD has stalled at that fib support. However GBPUSD looks like may still be OK

You just never know what the market is going to do!

As I mentioned yesterday and today though, Mondays and Tuesdays are more often then not "buy days" so wouldn't be surprised to see us stopped out completely -let's see what happens. We're all still learning!

rgds

Hi Tom

Yep - hopefully our DASR on 4hr, fib resistance 15347 and BRN at 15350 will hold it down!

Mmmm looks like EURUSD coming down now!

Shows the value of rather hiding our SL behind a BRN (big round number) as well as DASR level. Our SL should have been above 12750

Hi Jerry

That vegas daily 1 hr on 15min tf seems to be stalling the fall

Tom

Well it's time to close all shorts and go the other way.

Take a look at the EURUSD 1 hour chart:

2 reasons for today's failure guys:

1/ It's Tuesday - generally always an "up" day!

2/ Strong counter-trend conditions. All that happened was that price came down to test support as it often does. Because it had "built up steam" it shot though our DASR temporarily before heading back up again. In this case we take our medicine and "go with the flow"!

I'm long EURUSD now - back up to 12800??

Your Scaring me Jerry ha ha

Hi Jerry
The vegas daily 1hr not showing up on your 1hr E/U chart, on mine price is again, bouncing off it?

Tom

Chart Sorry E/U

I think the confusion here is, do we wait for price to close below DASR on 4hr tf or 1 hr tf, or 15 or 5m tf, or do we wait for all tfs to be in agreement?

Tom