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Using the DASR for successful trading

  • #61
  • Jan 17, 2012 10:49am Jan 17, 2012 10:49am
The reason I ask is I am still in G/U trade, it is below DASR on 5, 15, 30, 4hr and Daily, and touching on the 1 hr, this seems like a good down trade to me, or am I missing something, to counter trade this now would not be logical to me, and you did say in an earlier post this was a 4hr strategy, please advise

thanks

Tom
  • #62
  • Jan 17, 2012 11:02am Jan 17, 2012 11:02am
Quoting jmtini

2/ TRADING SESSION
The best time to trade is obviously when price movement is going to be the most. Especially if you're trading the Euro or GBP pairs, price movement is greatest (and thus you are going to have the most pips) when Frankfurt/London and London/New York overlap. Usually that is around 7.00am – 5.00pm GMT. I especially watch the 8.00am, 12.00pm and 4.00pm candles on the 4hr chart. One sees that reflected in the charts constantly.
Jerry, I believe that this strategy requires good volatility, which I think is very important to follow your advice about trading session, especially 8.00am and 12.00pm. At 4.00pm is low volatility against the others.

Regards.
Enter Signature
  • #63
  • Jan 17, 2012 12:24pm Jan 17, 2012 12:24pm
Quoting maudur
Jerry, I believe that this strategy requires good volatility, which I think is very important to follow your advice about trading session, especially 8.00am and 12.00pm. At 4.00pm is low volatility against the others.

Regards.

Yep you're absolutely right Maudur. That's why nothing seems to be happening much right now!
  • #64
  • Jan 17, 2012 12:29pm Jan 17, 2012 12:29pm
Quoting booktimes
The reason I ask is I am still in G/U trade, it is below DASR on 5, 15, 30, 4hr and Daily, and touching on the 1 hr, this seems like a good down trade to me, or am I missing something, to counter trade this now would not be logical to me, and you did say in an earlier post this was a 4hr strategy, please advise

thanks

Tom
Hi Tom
I closed all my trades as there seems to be a battle of wills going on at the moment! Obviously the prevailng trend is strongly down so it makes sense to keep your sell trade open. Sorry I posted the wrong 1 hour chart earlier.
  • #65
  • Jan 17, 2012 12:38pm Jan 17, 2012 12:38pm
Hi Jerry
I just closed my G/U trade with a couple of pips profit, no loss which is good, this strat is all about patience which is great actually, and respect to you my friend you seem to know this inside out, looking forward to learning from you and trading with you, must apologise I am a pain for asking questions

many thanks

Tom
  • #66
  • Jan 17, 2012 12:39pm Jan 17, 2012 12:39pm
Here's the right chart. Although failing bearish looking we're still well above daily pivot at around 15315 and european session is finished so don't know how much it's going to move. I would rather wait until tomorrow.

BTW it really makes sense to be looking at more then the majors. Have a look at EURCAD - 12.00pm bar was perfect for our system!!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd 1hour.gif Size: 20 KB
Click to Enlarge Name: eurcad.gif Size: 20 KB
  • #67
  • Jan 17, 2012 2:36pm Jan 17, 2012 2:36pm
Quoting jmtini
Here's the right chart. Although failing bearish looking we're still well above daily pivot at around 15315 and european session is finished so don't know how much it's going to move. I would rather wait until tomorrow.

BTW it really makes sense to be looking at more then the majors. Have a look at EURCAD - 12.00pm bar was perfect for our system!!
Jerry, in the case of EURCAD a good entry would have been about 1.2944 in short? ie, after break fibo level?

Thanks.
Enter Signature
  • #68
  • Jan 17, 2012 5:31pm Jan 17, 2012 5:31pm
Hi Jerry

Many thanks for giving me a heads up on this strategy and pointing me in the right direction.

Question;
Have you used this on Silver and Gold at all, and if not, would you mind, if you have the time please, running a Silver chart every now and again in your examples?
  • #69
  • Jan 17, 2012 6:14pm Jan 17, 2012 6:14pm
Quoting maudur
Jerry, in the case of EURCAD a good entry would have been about 1.2944 in short? ie, after break fibo level?

Thanks.
Definately good - It opened at 1.2949 so was looking bearish at that level!! Right down to 1.2890 would have been a nice one!
  • #70
  • Jan 17, 2012 6:15pm Jan 17, 2012 6:15pm
Quoting WhoDunIt
Hi Jerry

Many thanks for giving me a heads up on this strategy and pointing me in the right direction.

Question;
Have you used this on Silver and Gold at all, and if not, would you mind, if you have the time please, running a Silver chart every now and again in your examples?
Will do!
  • #71
  • Jan 17, 2012 6:17pm Jan 17, 2012 6:17pm
Hi everyone

Interesting day and we are all (including me!) are learning more each day about using the DASR to make good trading decisions.

I think we (including me!) have to again remember the strategy here. Our strategy is to enter a trade when price action BOUNCES off the DASR ideally in the direction of the prevailing trend. Or if it's a strong counter-trend then the same thing applies!

Unfortunately for us, EURUSD is in a fairly strong counter-trend situation and after failing to breach support around 12650 last Friday, and having this is mind (including market sentiment at the moment) we should have traded our system and had a pending buy order at 3.00pm this afternoon around 12732, on the other side of the DASR to catch the reversal in the direction of the counter-trend. The drop from 12800 was quite obviously a “sell-stop hunt” which is often used to catch small traders like us – it's a VERY nasty world!

Guys, what I normally do late in the evenings when I'm not trading is check the daily and weekly charts to double check trend strength and direction on all the trading pairs.

I notice a few pairs that might give us some set-ups using our strategy for trading tomorrow: EURCHF, EURCAD, AUDUSD, NZDUSD as they are all trending strongly

Rgds

Jerry

P.S. I have been studying the “vegas tunnel method” a bit more and realise that we may not be using the tunnel with it's associated fib lines to the full. More about that tomorrow!
  • #72
  • Jan 17, 2012 6:33pm Jan 17, 2012 6:33pm
Sorry forgot to mention that in my view the morning (from 7.00am to 12.00pm) GMT is a nicer time to trade then the afternoon when NY opens. Today was a good example with a great 8.00am bar on EURUSD and a nice 12.00pm bar on EURCAD. When NY opens price action swings around a lot more and one sees a lot of stop- hunting. On the other hand, like last Friday afternoon - we saw a big sell-off on the Euro and it was fine to trade. I just think that one has to be more wary when NY opens!

Rgds
  • #73
  • Jan 18, 2012 1:59am Jan 18, 2012 1:59am
Here is a chart from VantageFX, they are a UK broker, so I think the timing is right as far as the GMT thing is concerned, but I need to verify that today when they open their offices.

If I understand the method correctly, we are now looking for a long trade?
Pending long order should be placed around about 0.9850 with a SL at around 0.9812?
Attached Image (click to enlarge)
Click to Enlarge Name: AUDCHF.jpg Size: 167 KB
  • #74
  • Jan 18, 2012 2:06am Jan 18, 2012 2:06am
For those of you that are like me and switch time frames often, there is a little thing called Bar Timer, it's an indicator and can be seen in the top right corner of the chart posted above.
All it does is give you an idea on % from 1% to 99% as to when the bar will close.
If you need it, it is attached below.
Attached File(s)
File Type: mq4 BarTimer.mq4   2 KB | 494 downloads
  • #75
  • Jan 18, 2012 3:41am Jan 18, 2012 3:41am
Quoting WhoDunIt
Here is a chart from VantageFX, they are a UK broker, so I think the timing is right as far as the GMT thing is concerned, but I need to verify that today when they open their offices.

If I understand the method correctly, we are now looking for a long trade?
Pending long order should be placed around about 0.9850 with a SL at around 0.9812?
Hi WhoDunit

Sorry I don't usually trade AUDCHF but if you notice - last week price action broke through the DASR before returning again upwards. This does happen when the prevailing trend starts to weaken. I see price has broken through again so either we wait for confirmation of a counter trend or much better to have a pending trade on the correct side which is exactly what you are doing - GOOD!
  • #76
  • Jan 18, 2012 3:51am Jan 18, 2012 3:51am
Well this morning AGAIN really proved the sense of trading the 8.00am bar (7.00am GMT) so I'm afraid if we all really want to make a few bucks it's time to set the alarm (if you live in Europe)!

Take a look at EURUSD - came down to DASR overnight and bounced beautifully!

Of course what does help (and this morning was a great example) is if there is a fib resistance/support line or BRN just above or below our DASR. This morning the pivot point at 12732 was very handily placed just below our central DASR area!!

I've opened a sell trade on EURCHF - nice steady down movement!

rgds
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 24 KB
Click to Enlarge Name: eurchf.gif Size: 21 KB
  • #77
  • Jan 18, 2012 4:01am Jan 18, 2012 4:01am
Yep I've looked at GBPUSD and don't know what's going on there at the moment - price is swinging around! A dead give-away is to look at the angle of our tunnel. It's horizontal. When the tunnel's horizontal we really have to be careful because price action is gonna swing around!

For our system to work we really want the tunnel to be at an angle - the steeper the better! So it does make sense to look at all the pairs to search for the ones that are trending the most.

rgds
  • #78
  • Jan 18, 2012 4:12am Jan 18, 2012 4:12am
Morning Jerry
  • #79
  • Jan 18, 2012 4:13am Jan 18, 2012 4:13am
Have a look at EURCAD this morning 8.00am bar bounced really nicely - off not a fib level but a BRN (1.2950) which was handily just below the DASR

I think that I must also stress that the "dynamic area of support and resistance" is just as it say's : an AREA!! It's not a pip level but an area created by price action itself. So what I'm saying is that that blue line in our daily vegas tunnel is a GUIDE as to where the dynamic support/resistance area is at THIS moment.

rgds
Attached Image (click to enlarge)
Click to Enlarge Name: eurcad.gif Size: 21 KB
  • #80
  • Jan 18, 2012 4:15am Jan 18, 2012 4:15am
Quoting booktimes
Morning Jerry
Morning, booktimes!

Got up late this morning but setting my alarm tomorrow!
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