Using the DASR for successful trading

But you got to think of it in the way the market really is, the more time price goes up there the more sell orders are being filled, so the next time it gets there, theres less sell orders than before creating a bigger chance of the buyers finally pushing through

Thanks deankenny

I forgot of course "three knocks and the door opens" - Still learning!

Yep, I just switched on the computer and there you go! Wished I'd placed that pending buy now! Anyway maybe we'll get a bit of a retracement overnight and I can try to join in the fun tomorrow.

Hi everyone - sorry I was out most of the morning. Had a pending buy order in from yesterday evening for a few pips so sitting on a little profit at last!

Well in case you didn't notice, our strategy worked a DREAM this morning on the 30 min chart. Remember you have to go down the charts until you get to the DASR that the "big boys" are playing off. It's obviously different on different days depending on trend strength of course.

I've circled the area that we "the pro's" would have traded from (in yellow) and I've circled the area (in red) that the "rookies" would buy at (maybe we all would have a few weeks ago before we found out how the pros trade!!


rgds

Something I'm also trying to do - as can be seen from the above chart, if IN A STRONGLY TRENDING SITUATION we can actually press that "buy button" as near to the DASR as possible, we are not only going to bag more pips but we wll also, by placing our SL just on the other side of the DASR, be able to trade with less risk - which is really the name of the game!!

OK here's a new word - "confluence" and of course it means a lot to us. Two or more areas of support and resistance converging together - obviously price action is going to have a lot more trouble penetrating these areas and of course there's much more chance of price "bouncing" off these "areas of confluence".

Perfect example this morning when our DASR converged with a "big round number" - 13000 - BRN's especially triple zeros often act as a strong support/resistance so really when we see this example of convergence of two or more areas of support/resistance we can really take the trade with far more confidence of success!

Well now we're looking at cable and it seems that the 30 min chart is popular with the "big boys" today!

I have in fact just taken the trade. Try to take it up to the next BRN

sorry forgot to place my SL!! I have now just under the GBPUSD 30 min chart DASR

Well as you can see we're well in credit now and looking good for our BRN target at 15700


I think you can see now how I managed to make 6500 grand profit in 6 weeks with this strategy. Pity it was demo!!

Taken profits at 15700 - next time will take half and ride the rest!

Hi, I thought I would share with everyone the contents of an email I've just sent to someone. It's more or less self-explanatory and some helpful info for new or less experienced traders:

I'm afraid with forex trading like any job, if you want to make a living out of it, youHAVE to give it the time and you have to be watching the charts constantly. Yes, a set-up can come along at any time. It happened to me yesterday evening - I totally missed that euro/cable break-out against the dollar because I thought "well nothing's going to happen now until tomorrow" and I switched offliterally minutes before the break-out. Goodness did I give myself a strong mental kick!Of course in a strongly trending situation like today you can really just about open a trade anywhere and you would eventually get into profit! But of course everyone hates to see big draw-downs on their account so it makes sense to press the trigger at the right moment.

Just like you and the 95% of other small traders, I am also a big forex loser - about $6000 up until now. Like you I decided that I had to "go back to the drawing board" and eventually I found out about this "DASR" system (by the way it's not my system, I learned about it from a guy called Hector DeVille.One difference between his system and mineis that I prefer usingthe daily vegas tunnel whereas he just uses 3 SMA's. I have also added my 4 hr chart strategy which is a great guide to help us to see whether we should be "longing" or "shorting" the market. A huge problem why so many small traders lose money (like I did!) is selling on the long side of the market orbuying on the short side. A very good idea always, is to go back and have a look at all your trades and compare them to what youWOULD have done using our strategy - Ican just about guaranteethatnearlyALL your losses were because you sold on the "long side" of the market or bought on the short side. The other problem is, as you are probably aware, is that the forex market is NOT a "level playing field". The whole market really revolves around the big fish (the market movers) constantly chasing and eating the little fish (that's us!). Stop hunting and "fake-outs" are going on a constant basis in orderto relieve small and nervous traders of their hard earned money. Furthermore, they have a huge advantage in that theycan see where all the retail buy/sell ordersare placed at any one time. And boy - do they gun for them!!

So theway to succeed in this game is to buyonly whenTHEY buy and sell only when THEY sell! I've been trading for over 3 years and I can tell you in all sincerity that this "trading off the DASR" strategy is theonly system that works on a consistent basis. You HAVE to trade reactively - NEVER predicatively. One word of caution though, and that isthat the system isnot so reliable in a "flat" or non-trending market. That's why I'm constantly looking at all the different trading pairs to find the ones that are the most strongly trending.

rgds

Jerry

GBPUSD gone again - see where we end up!

Well there's another one to a fairly successful conclusion.

Don't think we need any more proof that this strategy DOES actually work!


rgds

Took a small buy on eurusd too - not so keen on the euro today - might be coming to the end of the "up road" at 3150.

Cable was like candy off a baby today

Yep, cable was truely great today.

Closed out my EURUSD for a small loss - only traded a micro lot cause I had a strong feeling it wasn't going anywhere!

Just thought I'd post the AUDCHF chart which is a great picture of a "flat" price action - notice how the two tunnels have converged - no trend at the moment on this pair!

A friend directed me to a very interesting website called : priceactiontrading equation

I don't agree with everything it says but this is very interesting (because it really does confirm that our strategy is on the ball!) :

Support And Resistance – How Does It Confirm

Some traders take a while before they can accept that higher lows above the low+ (SUPPORT) tell you the market is trying to rise to a price level possibly 100+ pips away. And that lower highs below the session high (RESISTANCE) tell you the market is trying to decline to a price level again possibly 100+ pips away. Quite often the session high and low are positioned within range of a round or midpoint price level.
Traders get fearful of taking early lower highs/higher lows as entries as they often want to see more of a rise or decline before getting involved. This delay just serves to get traders into trouble as entries will then be too high to BUY or too low to SELL and will be in danger of being fouled by the normal retracement action on markets. There is nothing worse than getting closed out of a trade just because your entry was off where it should have been taken.
Unless a market has a very tight/small daily range there is no such thing as a dominant move that only moves 20/30 pips or so. Traders are caught out all the time by thinking the market is no longer rising or declining because it is now heading against the direction in which they are trading………..THIS IS NORMAL and is the nature of retracement.
Traders will assume support and resistance at inappropriate places if they sit and watch the chart too closely. This will just lead to you becoming a scalper, it will prove very time consuming, stressful and at risk of error as you are allowing the markets to push you in and out of trades all session long. The market can only bully you if you let it.

Support and resistanceis mainly encountered at round numbers and midpoints as these affect crowd psychology. If the market has risen off a lower round/or midpoint price level or declined off a higher round/or midpoint price level and is approaching the next it often stops and changes direction here or at/approaching the next midpoint beyond the round number in question. The change in direction can result in a decent pullback or a permanent more meaningful counter move as long as round numbers and midpoints are cleared with price movement as a consequence of the change in direction.
Support and Resistance must be fully confirmed on any market before you are going to trade. When it is not clear or still forming a trader should be sat on his/her hands.

Hi everyone

Price action this morning has been a bit jerky but onwards and upwards on our major pairs!

Some nice bounces on GBPUSD 15 min and aussie 5 min - not really sustained - so it's a scalping exercise in the main today!

I've said this before but for those who might still be fooled, you have to really watch out for fake-outs at the opening of a new trading session. A great example this morning on EURUSD at 8.00am GMT exactly the time London opens!!

Of course with our strategy they would never catch us at all 'cause we never sell on the "long side" of the market!

I went long on AUDUSD just now at 10662 really think we're going to see aussie up to 10700 sooner rather then later!

Looks like EURUSD coming down to 15 min DASR with daily pivot just below. Could be the area to watch for a bounce?