Using the DASR for successful trading

Yep, showing oversold a touch on 4 hr so you could be right - if it does come back to around 2850 it will be slap bang at our DASR on 4 hr chart!

I don't get the same graph as you, i don't know why.

I've applied your template to my mt4 platform and lines are lot more 'wide'

Forgot to attach the file ...

So you use H4 Vegas Tunnel over a H1 graph, is that ok ?

Hi rbetancor

You are using a 4 decimal platform instead of a 5 decimal platform. Go to "tools" "options" "server" and select Alpari "pro" account and put in your account number or password. The tunnel won't work properly on 4 decimal (1.29500 not 1.2950 only)

rgds

Use the daily vegas - I posted all the indicators plus the instructions at the beginning of the thread.

Sorry I did not specify that you have to have 5 th decimal trading quote on your trading platform. You can get vegas tunnels for 4 decimal platforms - not sure where again but I can look if you like

rgds

Last Friday EU went nowhere so if you want (and you feel brave!), you can go down to the 1 min chart and do some scalping. This a totally different strategy - buying and selling when price fluctuates to different extremities of our tunnel. I use a different tunnel for this strategy, based around the 55 SMA (forex freedom's "FF" tunnel). Also have the 200 SMA which tells us if price action is presently bullish (above the 200 SMA) or bearish (below the 200 SMA).

I've posted the indicator and template in case you wanna try it out! Don't ask me too much about it because I've hardly ever traded it. But if like scalping (in and out quickly with a few pips profit) then it could be an option.

Nice thing about it is that you can gauge strength of the short term trend by noticing how much the tunnel narrows. Wide tunnel = hardly any trend not good to trade. Narrow tunnel = strong trend, good to trade.

rgds

Sorry, forgot to mention that for this 1 min chart scalping strategy we still of course have our BRN's, pivot point and fib levels. One can see far more clearly on the 1 min chart how price reacts to those levels! Can set trades accordingly.

Just a thought or two above the above subject. I've been reading a few threads where guys are professing to predict supply and demand areas. Sure, if were were dealing with robots or machines or maybe even a roulette wheel (when it comes to the Forex market!) we might have some slim chance to predict a potential area or point to open a trade. However we are not – this a human being controlled market which means it's highly unpredictable. A case in point is not long ago a guy in a big financial institution was told to sell the euro big time – he apparently pressed the wrong button and bought instead! Then there's the “Swissie” announcement that caused the CHF to drop a lot of pips in a very short time. Looked what happened on the morning of 30th November – Euro rose 100 pips in 5 mins catching everyone unawares. That's why I think that “predictive trading techniques” like buying/selling off old resistance/support (horizontal) levels highly dangerous. How many times does price, instead of bouncing off an old resistance/support level instead race right through it! It's a bit like trying to predict tops and bottoms – highly dangerous and you can wipe out your trading account thinking “the price is definitely going to turn around any time now”. I know because it's happened to me!!

So, in my view, REACTIVE techniques far more reliable. We are not going to try to predict price movements but we are going to react when they do! So what if we miss out on as few pips? Far better to bank 10 pips by reacting then lose 50 pips by wrongly predicting!

Hope you all agree with me on this point.

rgds

So what are we going to be looking for tomorrow?

Well taking a look at the charts from last Friday, no prizes for discovering of course that Aussie and Cable were very bullish. Can't see any reason why they should not continue to be on Monday, especially as cable broke through significant resistance level.

So I have the 1 hour charts of AUDUSD, AUDCHF, AUDJPY, GBPUSD, GBPCHF, and GBPJPY open on my platform ready for tomorrow morning, cause of course we are looking for a nice, slow, and steady retracement back to our DASR and we will be looking for a bounce!
Obviously, if price action is still way above the DASR on the 1 hour charts then we will go down to a lower time frame in order to do the same thing.

Noticed PA back near entry levels on GU and AU.

Do you launch off 30 min or lower, if necessaty.

Nice bounce

YES - You can go right down to 5 min in a strongly trending situation!

Nice one janm! I think you've got the hang of the system.

I like your chart by the way!!

Hi everyone

Well we got the bounces we were looking for did we not!

I hope that those who see the benefits of this strategy are making a few bucks!!

I think that the system is fully explain so from now on we'll just be looking for trading opportunities.

Happy trading to all!!

rgds

Jerry

Usual fake-outs at start of NY session.

If we do have a turn around and price breaks HEAVILY through our DASR on 1 hour chart, obviously we will stand aside and wait to see what happens when price action arrives at DASR on 4 hour chart.

Sorry, forgot to mention that on whatever time frame on which you are looking for a "bounce" your stop loss would be below (say 5 pips?) the DASR on THAT chart.

rgds

Well as usual we had the "fake-outs" at the start of the NY session!!

Is this situation it's nice to have a look at the stochastic indicator window (I set mine at 5,3,3)

About 20 mins ago I noted the strong bullish divergence on the GBPUSD pair - a "dead give-away" that we could expect more bullish action which is exactly what happened! We did of course have a nice bounce off our 30 min DASR on the last half hour - just gave us the confidence to hold on for a bit.

Let see what happends i think risky!

Trade taken on 5 min-->now also cross 15min I let it run stop on breakeven ==>+10
audchf +15 still running
audjpy +6 still running