Islander and Medici trade the European open | Page 189 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Highest Open / Lowest Open Trade 21,202 replies

As complicated as necessary: Highest Open / Lowest Open Trade 861 replies

Getting a handle to open trades in the open trade tab 3 replies

EA to open trade on Next Candle open (help please) 4 replies

Medici trades the London open 435 replies

Attachments: Islander and Medici trade the European open
Exit Attachments

Islander and Medici trade the European open

  • #3,761
  • Mar 7, 2012 11:21am Mar 7, 2012 11:21am
Quoting medici
Thanks, and well done For some reason, I sometimes hesitate with such strong momentum reversals...which are really the best opportunities
It's the time when my Islander-mode flips on as I can't help but use M5 volume when I have time-based charts up. The big spike in the second attempt lower all but confirmed my thinking that something was up and the players were buying hard. Of course, if you're not careful volume can bite you in the ass too. These days I try to use volume less and less to avoid confirmation bias and other trading issues but as long as I'm selective with it, I find it can help me flip my direction a bit earlier on those strong turns.

Still, the best option was probably just to get in just above 3100 and not worry about the rest.
  • #3,762
  • Edited 5:56pm Mar 7, 2012 5:30pm | Edited 5:56pm
Quoting Auron112
It's the time when my Islander-mode flips on as I can't help but use M5 volume when I have time-based charts up. The big spike in the second attempt lower all but confirmed my thinking that something was up and the players were buying hard. Of course, if you're not careful volume can bite you in the ass too. These days I try to use volume less and less to avoid confirmation bias and other trading issues but as long as I'm selective with it, I find it can help me flip my direction a bit earlier on those strong turns.

Still, the best option was...
Hmm, while perfectly justfiable that involves a good bit of discretionary judgement - something that I am trying to cut out. Playing by rules gives me much more confidence and makes trading stress-free. So I'd much rather make 2T/2B a rule, given certain conditions, than hold on to M5.

But I won't be thinking much about that over the next couple of days as I have a visitor here from overseas. I hope you guys can keep the pot boiling until Tuesday when I'll be back in biz again.

Until then, happy trading to all, and a nice weekend
  • #3,763
  • Mar 8, 2012 4:28am Mar 8, 2012 4:28am
Quoting medici
Hmm, while perfectly justfiable that involves a good bit of discretionary judgement - something that I am trying to cut out. Playing by rules gives me much more confidence and makes trading stress-free. So I'd much rather make 2T/2B a rule, given certain conditions, than hold on to M5.
Yes, too much discretion, I think. When I was trading without M5 at all for a while it wasn't an issue and was far less taxing on the brain cell so I may go back to that. The only downside is a cluttered RB chart if I throw all my pivots on it (especially if I include 20p lines). So perhaps a compromise for me may be to keep the M5 up, but remove volume and perhaps even switch over to a line chart. It's not that I don't find the M5 useful at times (and perhaps more profitable when combined with RB overall), but it certainly doesn't make things any simpler. So sacrifice an extra trade or two for reduced stress on the grey matter? Probably worth it...
  • #3,764
  • Mar 8, 2012 4:37am Mar 8, 2012 4:37am
As for the morning trades, it was just a matter of playing the trend for me today. Initially I was watching EU when I sat down and I did try a mid-FH long. It was into the R1 so a bit risky but I pulled out a few when it failed at the earlier highs. As the MAs tightened another opportunity came up for a potential breakout but...

I passed on that in favour of GU. With EU stuck in a tight range and still below R1, GU looked the better choice to my eyes. The MAs had a decent spread and we had just pulled back to R1 and stalled (with a little M5 doji). So I preferred this long to EU as we broke out of the MAs (same as the Cloud). Took profits on the double shooting stars, then entered again as we held on 5800. Decent pips on what had been a slow day. +28, +22 and +7 (earlier EU).
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu-rb.gif Size: 39 KB
Click to Enlarge Name: gu-rb.gif Size: 39 KB
  • #3,765
  • Edited 6:34am Mar 8, 2012 6:02am | Edited 6:34am
And another long on EU I am currently holding to see how it reacts to MPC.

Note that it's also a nice 2b pattern on the false break below consolidation. Good sign to resume the trend.

Update: Out for 27 after the M5 stalled and we dropped. Not the best of exits but still a good chunk in the bank.
Attached Image (click to enlarge)
Click to Enlarge Name: eu-rb.gif Size: 39 KB
  • #3,766
  • Edited 3:00pm Mar 9, 2012 2:24am | Edited 3:00pm
Hi all,
Many thanks for print screens I study ALL of them.
I have also noticed that CII also helps a lot with good entries.
I am currently away and whenever I can, I demo trade (forgot me passwords )
Will buy a good laser printer when I come back and get them all printed for the further study.
Have a good and safe trading day and great weekend!
Attached Image (click to enlarge)
Click to Enlarge Name: 09mar02.gif Size: 31 KB
  • #3,767
  • Mar 10, 2012 3:10pm Mar 10, 2012 3:10pm
Quoting Krisdetrader
Hi all,
Many thanks for print screens I study ALL of them.
I have also noticed that CII also helps a lot with good entries.
I am currently away and whenever I can, I demo trade (forgot me passwords )
Will buy a good laser printer when I come back and get them all printed for the further study.
Have a good and safe trading day and great weekend!
Attachment
No problem. A glance at my posting history shows that I'm far from consistent in my participation on the Factory but I'm going to try and share some more charts going forward. I'll try to include reasoning as well if time permits, and I hope some people get something useful out of them.

Interesting to see you putting CII to use with RBs. I'm quite a fan of CII myself after using it for a good length of time on time-based charts. It was only after moving to RBs that I became quickly attached to things like MACD and let it go. How are you using the CII and what sort of advantages do you think it brings?

It seems in your chart you are using the cross of the 50 to help you determine possible direction change and then maybe 0 and 100 as OB/OS as potential exit points? I'm going to take another look at CII today and see if I come up with anything that might be beneficial, but I have to say T3 Osc and I have become fast friends and I don't see that changing soon...
  • #3,768
  • Mar 10, 2012 3:17pm Mar 10, 2012 3:17pm
Quoting medici
And in these slow markets, it makes sense to trade the M5 and let it ride. Here with T3 Trend Magic (based on T3 MA cross instead of price crossing SMA50).
This t3 trend magic is pretty interesting - did you program it yourself? I would like to learn more about how it works. I have been applying it to 1 hr charts and it looks promising when combined with some common ¢.

Attached Image (click to enlarge)
Click to Enlarge Name: magictrendline.png Size: 73 KB
  • #3,769
  • Mar 10, 2012 6:04pm Mar 10, 2012 6:04pm
Thanks for charts M and A; very nice stuff.

Busy over here transitioning into new timetable but will be back and posting ASAP.

Trade well!
  • #3,770
  • Mar 10, 2012 6:16pm Mar 10, 2012 6:16pm
Quoting Auron112
And another long on EU I am currently holding to see how it reacts to MPC.

Note that it's also a nice 2b pattern on the false break below consolidation. Good sign to resume the trend.

Update: Out for 27 after the M5 stalled and we dropped. Not the best of exits but still a good chunk in the bank.
Mate can I ask a total newbie question here? Would you mind detailing the 2B pattern there? Have searched through thread but the search feature is a jerk.
  • #3,771
  • Mar 10, 2012 8:21pm Mar 10, 2012 8:21pm
Quoting nhen
Mate can I ask a total newbie question here? Would you mind detailing the 2B pattern there? Have searched through thread but the search feature is a jerk.
Here's a good overview:

http://www.trading-naked.com/2b-reversal.htm

The one from the post you reference isn't a typical 2B pattern but the same ideas apply. The RBs were consolidating and price barely slipped below the lows only to be bought quickly. So basically just a trap to catch those traders short so if we break the top of the consolidation we will likely take off as those stops are tripped. Not something I would trade all the time (especially because it's not a HL entry long) but the key element is that it is with a strong trend and so you get some extra rule flexibility if you're going with the flow.
  • #3,772
  • Mar 11, 2012 5:45am Mar 11, 2012 5:45am
Hi Auron, hi all,

CII helps me to see diveregences better and trade them; to confirm Medici's safe entries and I can trade CII 50 cross itself.
If T3 has both values (plus and minus) within sig 0,004 range, i stay away until i see a clear move.
I would only take a trade at the right T3 colour or take it with much smaller size (see no. "0"); will need more history to confirm that though as well as exit points (opposite candle or pivots and Medici's lines or LH/HL trailing, or half close at 3-5 pips.) SL is 13 pips or less.
So the rules are technical, objective, simple and safe (well, we will see about that ).
The more I trade and study with you, the better they become.
"M" is Medici's safe entry. I know it is a simple retracement, but I prefer to call it that way .
Attached Image (click to enlarge)
Click to Enlarge Name: 09mar03.gif Size: 41 KB
  • #3,773
  • Mar 11, 2012 1:06pm Mar 11, 2012 1:06pm
I'm still a great fan of MTF analysis and using S/R to find the levels and then using the 5rb to fine tune the entry. There was a great example on Friday which could have given a short entry before NFP.

The H4 chart shows a nice closed candle resistance area from Monday at one of Medici's fav levels 3227:

http://www.forexfactory.com/showthre...79#post5407679

On my FxPro feed there was a close below this level at 12.00 (10.00GMT) on Friday.

We're then subjected to sideways action not surprisingly on NFP morning and the H1 chart shows a weak CT move which fails to close above the 27 level (also in the vicinity of the daily pivot at 3233). There is then a good solid H1 negative close back with the trend which is the time to start drilling down the lower tfs and rb5 to find a short entry.

Attached Image (click to enlarge)
Click to Enlarge Name: eu_20120309-h4.gif Size: 20 KB


Attached Image (click to enlarge)
Click to Enlarge Name: eu_20120309-h1.gif Size: 22 KB
Follow, don't anticipate.
  • #3,774
  • Mar 11, 2012 1:16pm Mar 11, 2012 1:16pm
The m15 then starts to show upper wick rejection of the LO price (1.3221) which confirms the bias for a move lower and there follow some LHs on the rb5 chart and a break of the morning's support level.

Attached Image (click to enlarge)
Click to Enlarge Name: eu_20120309-m15.gif Size: 16 KB


Attached Image (click to enlarge)
Click to Enlarge Name: eu_20120309-rb5.gif Size: 28 KB
Follow, don't anticipate.
  • #3,775
  • Mar 11, 2012 6:35pm Mar 11, 2012 6:35pm
I've been using CII ever since Medici introduced it about 18 months ago, and I believe it shows divergence better than any other indicator. Great on 2B entries and of course it's nice to see a confluence with an important level or RN.

I only trade the LO - not FH. Lately I have taken a few good trades when the CII crosses its 70/30 levels. Long when it closes above the 30 level and when the T3 Osc. is the correct color. Early days yet, and just trading small lots.

Like Medici, I am trying to get to a more formal "rule based" trading style, but I think some discretion will probably always be required.
  • #3,776
  • Mar 11, 2012 8:30pm Mar 11, 2012 8:30pm
Quoting orientos
I've been using CII ever since Medici introduced it about 18 months ago, and I believe it shows divergence better than any other indicator. Great on 2B entries and of course it's nice to see a confluence with an important level or RN.

I only trade the LO - not FH. Lately I have taken a few good trades when the CII crosses its 70/30 levels. Long when it closes above the 30 level and when the T3 Osc. is the correct color. Early days yet, and just trading small lots.

Like Medici, I am trying to get to a more formal "rule based" trading style,...
Thanks for sharing your thoughts. I noticed you haven't been posting all that much lately. Suppose I could encourage you to post a few charts with some examples of your use of CII?

I'm guessing you are referring to using it with RBs in the quote above, so I'd be quite interested to see it in action. I'm reluctant to add it to my charts during active trading (trying to simplify as much as I can) but I did look at CII again this weekend and it made me think a bit. I agree with you that CII is still an excellent tool. I especially like it on time-based charts, but once that element was removed with the RBs a lot of things like MACD that I had formerly dismissed became much, much more useful. Always open to experiment though.
  • #3,777
  • Mar 12, 2012 2:34am Mar 12, 2012 2:34am
You are correct - CII is much better on time based charts, which is why I watch a M5 chart while I am trading 5RB charts. The jury is still out for me on CII with 5RB, but it shows promise.

At heart I am mainly a HL/LH type trader. After tomorrow I am away for a week, but will post some charts when I return. I note your comments on MACD - maybe it's time I revisited this old faithfull indicator when I have the time.
  • #3,778
  • Edited 7:47am Mar 12, 2012 7:23am | Edited 7:47am
Quoting enochben
This t3 trend magic is pretty interesting - did you program it yourself? I would like to learn more about how it works. I have been applying it to 1 hr charts and it looks promising when combined with some common ¢.

Attachment
The original idea is due to TudorGirl, and the idea is to track price with a StopLoss line one ATR from the high/low of the latest bar. And the line would stay flat if "low/high -/+ the ATR" didn't move in the trend direction.

The price tracking is based on a binary definition of trend direction and I changed TG's indi to reflect a trend definition I was comfortable with based on the T3MAs. Also, TG's indi repaints, and I've fixed that in the latest version.

And the idea could be generalised to be based on your favourite choice of trend definition, and your favourite measure of acceptable risk, and then draw a line tracing the trend in the same way.

Hope that helps.
  • #3,779
  • Mar 12, 2012 7:28am Mar 12, 2012 7:28am
Quoting Krisdetrader
Hi Auron, hi all,

CII helps me to see diveregences better and trade them; to confirm Medici's safe entries and I can trade CII 50 cross itself.
If T3 has both values (plus and minus) within sig 0,004 range, i stay away until i see a clear move.
I would only take a trade at the right T3 colour or take it with much smaller size (see no. "0"); will need more history to confirm that though as well as exit points (opposite candle or pivots and Medici's lines or LH/HL trailing, or half close at 3-5 pips.) SL is 13 pips or less.
So the rules are...
Good stuff, Kris Keep us posted on how it goes.
  • #3,780
  • Mar 13, 2012 2:40am Mar 13, 2012 2:40am
What to do on a morning like this but wonder why price is stuck at this level. A couple fibos seem to provide some explanation.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: fibo h4 13 march.jpg Size: 100 KB
Click to Enlarge Name: fibo w1 13 march.jpg Size: 86 KB
3 traders viewing now