Using the DASR for successful trading

We've looked at Asian session high/low and pivot point in planning our day but what about BRN's (big round numbers)?

Well BRN's are really great to utilise as the "floor and "ceiling" as well as target points in our daily trading plan. For instance today quite obviously 13200 was the "floor" (or "ceiling if you like!) and knowing the daily range we could quite easily work out that 13100 would be a good "ceiling" to aim for. If you think about it course, when the "big boys" (who buy and sell enough currency to really move the price) work out THEIR daily strategy, they are certainly not using minor levels in their planning rather it's so much easier to work from BRN to BRN (say 13200 to 13100 or 13200 to 13050). If we know HOW THEY THINK AND PLAN and we know the approx. daily range of our favourite currency pair, we can obviously work on those targets too!! They are also of course "stop hunting" along the way, and as people usually put their stops at BRN's, you'll note how price action seems to accelerate though BRN levels as it did this morning through 13150 and just now through 13100.

rgds

OK so we're at the critical level right now. What are looking for? Well a reversal for sure. And after 4 red candles we can more or less expect a green one I would think!

The 3.00pm candle is opening in 40 mins (if you're looking at a CET chart) and what I'd like to see is a nice "squeezed" bullish candle. Obviously we could then enter long on the next one at 8.00pm (CET). As Tuesday is usually an "up" day anyway, I intend to keep the trade open overnight.

As far as our 4hr DASR strategy is concerned, we can't look for short trades until we see CLEAR EVIDENCE of a "short market" - price action STAYING BELOW (and nicely bouncing off to the short side) our 4 hr chart DASR.

rgds
Jerry

Just in case we have some newcomers to the thread, I thought I would just try to clearly illustrate exactly what we mean by the "short side" and the "long side" (as far as our 4 hr strategy is concerned).

So I've posted two GBPUSD charts. One shows that from 5th to 13th January we (as far as GBPUSD was concerned) were on the "short side" and could have really entered short just about anywhere with comparative safety!
From 18th January until at least last Friday we were on the "long side" and the converse is true.

rgds
Jerry

EURUSD - Well as you can see, I've entered long because you can clearly see the the guys are taking their profits! Also we've had a trading range of around 140 pips which is probably it for the day. Further bullishness will mean that the "big guys" are buying again in anticipation of selling a lot further up so we maybe should probably get in sooner rather then later!

nice pinbar forming on the 4hr too on Eurusd

Kinda think I entered too early!!


There is a REAL case to made for waiting for CLEAR CONFIRMATION of reversal.

Probably will get it at 8.00pm candle - PATIENCE, PATIENCE , PATIENCE

EURUSD looks like I could be right! Still too early to tell of course. But a "squeezed" bullish 4.00pm candle will give us such a nice platform to launch from!!

waiting for end of candle to decide..... Its hard to wait ....decided to take a short earlier and didn't read your post.....no brainer taking the fifth red candle lol

by the way...fantastic job on the thread...well written and explained.

A

Thanks so much, traders-sa,

Quite a few hours of research went into it I can tell you!

The research I did on "analysing the day" I think we'll find very useful in the days ahead. It really helps in planning and executing a successful trade. Working out the "daily target" from the "big boys" point of view will definately give us the edge!

Rgds

Well the chart's are looking a lot better now.

Might not have to wait until 8.00pm!!

Guys, if you're planning a trade soon then try to set a long term target! Maybe 13400 or 13450 is reasonable. That would take us slap bang into the middle of the weekly DASR which is where I always thought we are headed!

The well known words are true: "Cut your losers early, but you gotta let your winners run and run......."


rgds
Jerry

Well hope your trades are set up and running. Nice overnight buying - very small retracement going on now, but we should break through 13200 sometime this morning I would think. Our eventual target should the magenta coloured line on my chart. Around 13450

Remember our "day analysis" - daily range, asian close, BRN's and pivot point.

We're nicely above daily pivot, good asian buying overnight. So 13150 (hopefully) should be our floor meaning that we should get to at least 13250 today if it's a normal trading range day. Price action should exceed the asian overnight high at around 13196 to fully assure us that we are well and truely on the way up to much higher levels!

Hi everyone

Well since we opened our trade yesterday evening we've seen some great bullish movement plus a perfect retracement down to our 1hr DASR where all the guys re-loaded again!

I did bank some profit at 13150 last night and again at 13200

For those people that are new to our thread and DASR strategy, I have posted the two charts showing our entry yesterday and "re-load" point from this morning.

You will note from the hourly chart how I've boxed today's trading range so far and you will also note that daily pivot is very nicely placed near 13150 which I'm certain will be our "floor" for today. In that case although we've briefly retraced again, 13250 should be the "big boys" target for today. Let's see what happens.

rgds

Well I just re-loaded with 2 mini-lots off the 30 min "bounce"

Got a strong feeling that we'll re-test that stubborn 13200 BRN resistance again soon. Might break through this time!!

Seeing as we've had no sustained break of the asian high yet, I would guess that we'll see a much more determined "push" during this afternoon's NY session. Let's see (and hope!).

Have placed my SL at 13170 just under the 30 min DASR

Doesn't look so hot. Politics might interfere with our plan for the day of course! Or we might end up having a low trading range day if PA ends up retesting our 13150 daily support level. If we do we can at least look forward to a nice "big range" day tomorrow!

During the trading day minor areas of support (or resistance) get thrown up.

Today there is one around 13160. Note on the attached EURUSD 15 min chart price movement came down to that level (thick light blue line) and shot back up fairly quickly. What often happens is that the next time price action comes down there, it often respects that support area and even before reaching it, will shoot up again. Could very well happen today.

Well, stopped out EURUSD of my trade off the 30 min chart DASR. Shows the value of, if at all possible, taking trades off the higher time frame trades. Our two trades off the 4hr and 1 hr DASR's were great.

Hi everyone

Hope we had all closed our longs once today's sell off began in earnest.

Today the fourth element of our daily analytic strategy came into play: News releases!!

The European common currency traded further lower against major opponents during New York mid-day trading on Tuesday, after reports from Greece showed that nation's debt-swap negotiation has seen progress. (from advfn)

I guess it's "selling the news". Anyway, I think it took many by surprise including me! We had a nasty 2-way direction in price action today with a bullish morning and a very bearish afternoon. The way to trade it? Well there were actually 2 nice CLEAR opportunities! I'll illustrate them with charts in the next post.