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M&W-Trading

  • #341
  • Feb 8, 2012 1:48pm Feb 8, 2012 1:48pm
Can we get that ADR indi that list the pairs and the ADR from your earlier post.


Quoting bstay2
EUR/USD formed a nice W-pattern yesterday on 15mins chart off the 800ema seen on 1hr chart. Coming out of asian consolidation today, prices moved up quickly on "StraightAway" trade with no pullback to pivot M2 (1.3080 area) for safer entry. Zooming down to 1mins or 5mins, best chance to enter long is on break of 1.3114.

When ADRs are small, probably expect better volatility and actions after New York open.
http://i.imgur.com/zt1Ks.png
  • #342
  • Feb 8, 2012 4:27pm Feb 8, 2012 4:27pm
Hi, It´s almost a year since I started this thread.

As an european trader i´m looking for M/W patterns during London opening.

After months of watching charts i´m really convinced that this system works.

However. The market rythem is constantley changeing and Market Makers variations of flow makes it NOT that easy all the time to get right pattern.
Lately i think most of the action is during the NY-session,, but just wait a week or soo, then things starts to happend in the early Euro-session instead.

If we look for a M or W during the euro-session I belive that the best set-ups will occur if we have a pattern formation before Tokyo is closeing at 10:00 CET ( 09:00 GMT) . If soo, the odds of a longer rally i much better, plus when the NY-sessions open the trend will remain "all day long".

The perfect M/W pattern from my point of weiw is made in 70-100 minutes with 5-9 candles. So a fake-out just before Euro-session opening at 07:30 CET, that gives You 3 or 4 "vector candles" in a row on the M15 chart = First leg is finished at 08:30 with 25-50 pip, then seek for a M or W after London opening.

A good thing to do is also use a COG-channel ( center of gravity ) to spot the target for Overbought/Oversold levels in combination with Camarilla and Pivot.

The idea with this system is not only to find patterns, it´s also about understanding how the Market Makers work and how they are mastering "Digital robbery" = stophunting fake-outs, buy and sell traps.
  • #343
  • Feb 8, 2012 5:06pm Feb 8, 2012 5:06pm
Quoting hart3000
Where exactly was your entry / exit?

i entered at 1.08219 and exited at 1.07892

do you think there is a better entry and exit for this trade? or my trade where just fine? hope to hear from you guys so i could learn this properly

thank you again guys
  • #344
  • Feb 8, 2012 11:14pm Feb 8, 2012 11:14pm
Quoting mactrading
i entered at 1.08219 and exited at 1.07892

do you think there is a better entry and exit for this trade? or my trade where just fine? hope to hear from you guys so i could learn this properly

thank you again guys
You did some chasing there and got your 32 pips. Noice!

With chasing, your SL is within the established range and therefore you run a higher risk of being stopped out.

I would have traded this after the close of the red bar of the second M leg. With a stop of 17 pips (roughly equivalent to 20 pips in the EU) or less after the second leg was established. Would have gotten 49 pips to the White (with 17 pips risk, this is 2.9 X risk).

Didn't trade anymore at that time because after my CJ trade, I am done for this week.

http://photoupload.org/uploads/13287637701.png
  • #345
  • Feb 9, 2012 12:10am Feb 9, 2012 12:10am
This is in response to a private message, sorry to all if slightly off-topic but hope the requester finds it useful.

1. comparing EUR/GBP, EUR/AUD, GBP/AUD, we see that GBP is weak vs EUR and AUD.
http://i.imgur.com/8OQSy.png

2. comparing USD/JPY, CHF/JPY, USD/CHF, we see that JPY is weak vs USD and CHF.
http://i.imgur.com/ZDXbs.png

3. match the strongest currency to the weakest currency to decide which pairs to focus on.
strong: EUR, USD, AUD, CHF
weak: GBP, JPY

4. for long candidates, matched pairs are EUR/GBP, EUR/JPY, USD/JPY, AUD/JPY, CHF/JPY

5. for short candidates, matched pairs are GBP/USD, GBP/CHF.

6. neutral pairs in this exercise are EUR/USD, AUD/USD, AUD/CHF, USD/CHF, GBP/JPY. does not mean that they cannot be traded (JPY is obviously weak against ALL other currencies). it is just the result of the matching exercise, assuming that the prevailing 60mins trend continues.

To the requester, see if it explains yesterday's winners and losers.
  • #346
  • Feb 9, 2012 1:09am Feb 9, 2012 1:09am
Quoting slick 60
Here is a snap of the 6A aussie futures. There was a nice 28 pip light balanced profile during the European session leaving two naked POC's. Noramlly these POC's will become visual targets. After the t-line break and the retrace was underway entry order placed at 1.0782 and target the lower POC from the Asian session at 1.742. Worked fine today. Left my work on the chart this morning so a bit messy.

http://screencast.com/t/uq5fSgBBy

slick 60
Great lesson there, Slick. Thanks. I also find MP great for finding entries and exits. Take at least a look at a MP view before entering a trade. Before I got used to that, a nearby naked POC had often attracted price through my SL (i.e. I got stopped out). These chaps are really magnetic.

* MP = Market Profile
* POC = Point Of Control
  • #347
  • Feb 9, 2012 2:43am Feb 9, 2012 2:43am
"M" on the way EURUSD ?. Entry area 1.33140-1,33580 depending on how agressive the stophunting will be during Tokyo-session closeing
Attached Image (click to enlarge)
Click to Enlarge Name: 2012-02-09_0934.png Size: 86 KB
  • #348
  • Feb 9, 2012 3:13am Feb 9, 2012 3:13am
Quoting Zabana
"M" on the way EURUSD ?. Entry area 1.33140-1,33580 depending on how agressive the stophunting will be during Tokyo-session closeing
I'd be careful. Even though we have 60m TDI divergence, this will likely go up to the next level. We had prolonged accumulation into the Asia box.

Could take a quickie short for 30 pips from here (1.3297)
  • #349
  • Feb 9, 2012 3:19am Feb 9, 2012 3:19am
Quoting hart3000
I'd be careful. Even though we have 60m TDI divergence, this will likely go up to the next level. We had prolonged accumulation into the Asia box.

Could take a quickie short for 30 pips from here (1.3297)
Addendum: The 60m TDI looks to me like the current wave is only half through => Upside bias.

Could go long when price comes back to the 280 area. But definitely a dangerous trade because 20 pips SL would still far above LOD. => Nothing for me, the safety belt trader. (o;
  • #350
  • Feb 9, 2012 3:48am Feb 9, 2012 3:48am
Quoting hart3000
Addendum: The 60m TDI looks to me like the current wave is only half through => Upside bias.

Could go long when price comes back to the 280 area. But definitely a dangerous trade because 20 pips SL would still far above LOD. => Nothing for me, the safety belt trader. (o;
Hi hart,

I see you like to use a bit of profiling too. I've got some nice peaks around 1.3270 and 1.3256. The latter one lines up nicely with the 61.8% retrace of this last H1 move up plus the 1.618% profit taking extension of this last M15 leg up. Also great demand at 1.3250. Seems like a good bet for a target but it sure isn't in a hurry to fall.

I'm in a short from 1.3296 with a stop of 14.

How do those MP peaks line up with your view?
  • #351
  • Feb 9, 2012 3:52am Feb 9, 2012 3:52am
Nice thread by the way Zabana, thanks. Please keep it up.
  • #352
  • Feb 9, 2012 5:09am Feb 9, 2012 5:09am
Hi Zabana,

Not liking the strength coming in around 66. Holding for now for my 50 target.

Are you in on this?
  • #353
  • Feb 9, 2012 5:19am Feb 9, 2012 5:19am
Looks like early euro-session gave us a fake "M".

DPO at bottom,, MFI going up,,,

Waiting for the NY-session to open ,, and a quick rally up to todays ADR-level 1.3354..

Probably loads of sell-stops at: 1.33200 1.33500 since thuseday that will be hunted before any down-swing..
Attached Image
  • #354
  • Feb 9, 2012 5:23am Feb 9, 2012 5:23am
Quoting Zabana
Looks like early euro-session gave us a fake "M".

DPO at bottom,, MFI going up,,,

Waiting for the NY-session to open ,, and a quick rally up to todays ADR-level 1.3354..

Probably loads of sell-stops at: 1.33200 1.33500 since thuseday that will be hunted before any down-swing..

Agreed, but it was a pretty strong break of the M15 trendline and now we're consolidating below. I'm at breakeven -3 now so I'll just hold it and see if it can get me to 3250.

I'd definitely be looking for longs from that area if the PA is good.
  • #355
  • Feb 9, 2012 5:43am Feb 9, 2012 5:43am
Quoting Zabana
Looks like early euro-session gave us a fake "M".

DPO at bottom,, MFI going up,,,

Waiting for the NY-session to open ,, and a quick rally up to todays ADR-level 1.3354..

Probably loads of sell-stops at: 1.33200 1.33500 since thuseday that will be hunted before any down-swing..
What are "DPO", "MFI", "KGSP"? Looks very interesting.
  • #356
  • Feb 9, 2012 5:52am Feb 9, 2012 5:52am
Quoting Sutts
Hi hart,

I see you like to use a bit of profiling too. I've got some nice peaks around 1.3270 and 1.3256. The latter one lines up nicely with the 61.8% retrace of this last H1 move up plus the 1.618% profit taking extension of this last M15 leg up. Also great demand at 1.3250. Seems like a good bet for a target but it sure isn't in a hurry to fall.

I'm in a short from 1.3296 with a stop of 14.

How do those MP peaks line up with your view?

41.3 pips in the bag and I'm happy. Took it just short of the 50 line for safety.

Could well see some real strength kicking in now.
  • #357
  • Feb 9, 2012 6:06am Feb 9, 2012 6:06am
Not the kind of reaction I was expecting....maybe further to fall. I'm not playing until I see a W forming.
  • #358
  • Feb 9, 2012 6:09am Feb 9, 2012 6:09am
Quoting hart3000
You did some chasing there and got your 32 pips. Noice!

With chasing, your SL is within the established range and therefore you run a higher risk of being stopped out.

I would have traded this after the close of the red bar of the second M leg. With a stop of 17 pips (roughly equivalent to 20 pips in the EU) or less after the second leg was established. Would have gotten 49 pips to the White (with 17 pips risk, this is 2.9 X risk).

Didn't trade anymore at that time because after my CJ trade, I am done for this week.

http://photoupload.org/uploads/13287637701.png...

thanks for pointing that out, i will do better next time, its better to have a good entry than have greater risk, noted

thank you so much!
  • #359
  • Feb 9, 2012 6:14am Feb 9, 2012 6:14am
Quoting bstay2
What are "DPO", "MFI", "KGSP"? Looks very interesting.
DPO = Detrended Price Oscillator Period 14 + 55

MFI = Money Flow Index,, Standard Mt4 indicator

KGSP = Digital High Pass Filter . This one is brilliant to catch tops and bottoms in conjuction with DPO on M15 and higher TF.
Attached File(s)
File Type: mq4 DPO.mq4   2 KB | 727 downloads
File Type: mq4 KGSP.mq4   37 KB | 816 downloads
  • #360
  • Edited 6:39am Feb 9, 2012 6:21am | Edited 6:39am
Quoting Zabana
"M" on the way EURUSD ?. Entry area 1.33140-1,33580 depending on how agressive the stophunting will be during Tokyo-session closeing
Good call on the M at 3:43amEST! Both EUR/USD and EUR/JPY broke above yesterday's highs, threw 2 pins at pivot M4 (stop hunts), then created the M-pattern 15mins you alerted us. The second leg of M came close but could not break higher at 4:00amEST. If this topping action is mid-week reversal, could see both EUR pairs targeting M2 and rising 200ema.

(M2 --> M4 for bullish days, M3 --> M1 for bearish days, M4 --> M2 for top reversal, M1 --> M3 for bottom reversal)

ECB rate decision 7:45amEST and conference call 8:30amEST coming up.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSD1.png Size: 41 KB
Click to Enlarge Name: EURJPY1.png Size: 44 KB
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