Here's some more fib lines drawn on the 15m so far.
Attached Image (click to enlarge)
Islander and Medici trade the European open
- #3,781
- Mar 13, 2012 12:57am Mar 13, 2012 12:57am
- Joined Jan 2010 | Status: Primary Technical Trader | 8,593 Posts
- #3,785
- Mar 13, 2012 3:43am Mar 13, 2012 3:43am
Did the CT 2B trade test your patience as much as it did mine? Better to trade with the trend...now on the downside of the DP, so let's see if it continues down.
Just want to clarify because it's possible we're defining 2B/2T trades differently. As for myself, I didn't take either but I did have the finger close to the button on the second (not quite on it
). I've just been taking the comfort route today, following the trends right beside you. The last one was so damn pretty after that ZEW nonsense quickly passed. Throw that flash right in the trash, indeed.Oh, and I don't think you should ever apologize for posting that video. They should really have some built in script on the Factory that places it in threads every fourth page or so.
- #3,787
- Mar 13, 2012 3:51am Mar 13, 2012 3:51am
- Joined Nov 2008 | Status: Trader | 3,270 Posts
As for myself, I didn't take either but I did have the finger close to the button on the second (not quite on it
Oh, and I don't think you should ever apologize for posting that video. They should really have some built in script on the Factory that places it in threads every fourth page or so.
Agreed, and not just for the news verse. Very good philosophy in general, and then there's the indirect message that the system doesn't matter as long as you play the trend with consistent rules.
- #3,789
- Mar 13, 2012 4:03am Mar 13, 2012 4:03am
Auron, Just checking - 2T = Double Top?
What I mean by that is that I had never heard of someone refer to 2B pattern trades as 2B/2T trades before. So I'm not certain if Medici is defining them as double bottoms/tops or by the definition as I know it based on Trader Vic's pattern.
http://www.trading-naked.com/2b-reversal.htm
When Medici first referred to it I did a search and found a few places that do refer to 2B and 2T trades, where 2Ts are just 2Bs but they use 2T to say it's a market top pattern. See link below:
http://www.tradingfrommainstreet.com/techanalysis.html
So I just assumed Medici was talking about Trader Vic 2Bs since I found a few sources that added the 2T term. There's a chance though that I've misunderstood and he means double bottoms/tops but I don't think so from the charts I've seen. Hopefully he can clear up any possible confusion.
- #3,790
- Mar 13, 2012 4:08am Mar 13, 2012 4:08am
- Joined Nov 2008 | Status: Trader | 3,270 Posts
So I just assumed Medici was talking about Trader Vic 2Bs since I found a few sources that added the 2T term. There's a chance though that I've misunderstood and he means double bottoms/tops but I don't think so from the charts I've seen. Hopefully he can clear up any possible confusion.
Then again, they are often based on tick flow rather than chart patterns alone, and things may get a bit complicated if one tries to formalise them...
- #3,791
- Mar 13, 2012 4:12am Mar 13, 2012 4:12am
No, wasn't referring to Trader Vic's definition. Not sure I mean double bottom or double top all the time either, just "tradeable pattern where price has bounced twice from/across about the same level." So based on my own experience rather than what anyone may have written. Apologies if that causes confusion. Perhaps I should try to clarify the different setups/principles I use
At least it now makes those exceptions (like the one I asked about above) make a lot more sense.
- #3,792
- Mar 13, 2012 4:20am Mar 13, 2012 4:20am
- Joined Nov 2008 | Status: Trader | 3,270 Posts
Ah, ok. So many of your CT trades are proper Trader Vic 2Bs that I thought that's what you were referring to. Plus, I know you've been around Vantage's place in the past and he uses 2Bs extensively according to the regular pattern definition.
At least it now makes those exceptions (like the one I asked about above) make a lot more sense.
- #3,793
- Edited 6:09am Mar 13, 2012 5:31am | Edited 6:09am
Thought I would share how I've seen the day so far. The red arrows are actual trades taken and the white are other possibilities.
The first short was a mid-FH play that had a lot of extra evidence on the M5 as well. It's a proper 2b false break and considering the slope of the cloud (or MA50) I went for it. If you weren't trading Frankfurt or missed it, you were given a nice entry quite soon after.
The third possible trade is more a RB3 trade in my eyes than anything. Strong trending move and a nice pullback on that chart but could be traded here too.
Five (second red arrow) is a post-news short breaking out of a narrow cloud. Usually those are good for a chunk of pips if the prior trend is decent.
Seven (third red arrow) is an early trend re-entry. In a good trend I will look for places to resume the move without always looking for a break from the cloud. So here we have a pullback right to a prior high that is a solid opportunity. I played this pretty tight initially because things were slowing down and I wasn't convinced it would break clean. I like being wrong sometimes...
Edit: Realized I describe trades as "nice" too often. Need more adjectives...
The first short was a mid-FH play that had a lot of extra evidence on the M5 as well. It's a proper 2b false break and considering the slope of the cloud (or MA50) I went for it. If you weren't trading Frankfurt or missed it, you were given a nice entry quite soon after.
The third possible trade is more a RB3 trade in my eyes than anything. Strong trending move and a nice pullback on that chart but could be traded here too.
Five (second red arrow) is a post-news short breaking out of a narrow cloud. Usually those are good for a chunk of pips if the prior trend is decent.
Seven (third red arrow) is an early trend re-entry. In a good trend I will look for places to resume the move without always looking for a break from the cloud. So here we have a pullback right to a prior high that is a solid opportunity. I played this pretty tight initially because things were slowing down and I wasn't convinced it would break clean. I like being wrong sometimes...
Edit: Realized I describe trades as "nice" too often. Need more adjectives...
- #3,795
- Mar 13, 2012 6:28am Mar 13, 2012 6:28am
Thought I would share how I've seen the day so far. [...]
The first short was a mid-FH play [...]
The third possible trade is more a RB3 trade [...]
thank you for sharing your trades. They are almost perfect, I'd say
As I have not been a frequent visitor of this thread, would you mind explaining the acronyms "mid-FH" and "RB3" to me?
Cheers,
TraderJF
- #3,796
- Edited 6:48am Mar 13, 2012 6:36am | Edited 6:48am
Hello Auron,
thank you for sharing your trades. They are almost perfect, I'd say
As I have not been a frequent visitor of this thread, would you mind explaining the acronyms "mid-FH" and "RB3" to me?
Cheers,
TraderJF
Today they were almost perfect! Thanks.
Wish I could say that more often but when you get a nice trend like this it should be the result, assuming you don't start looking to counter just because it has hit the Average Daily Range or something. Scalps long are ok if you know what you're doing but the key is to treat them as scalps, not possible reversals.Mid-FH stands for Mid Frankfurt Hour. Frankfurt has some fairly common patterns and behaviours, one of which is that it loves to turn right around the half hour mark. Doesn't happen all the time, of course, but happens often enough that it is well worth studying to identify the common turns.
RB3 stands for Range Bar 3. Most of the RB charts we use in here are RB5, which means 5 pip range bars, but we have been dabbling in 3 pip range bars a bit more lately. For me it is still very early days in watching and researching them so I haven't put them in action often. I do like the idea of taking RB3 pullbacks in very strong trends but the rest of it is a work in progress and I'm not sure where (or if) it will eventually fit in the big picture.
- #3,799
- Mar 13, 2012 7:05am Mar 13, 2012 7:05am
- Joined Nov 2008 | Status: Trader | 3,270 Posts
.
Range bars... never tried those. Currently I am quite happy with my setup of 7 timeframes 1-day down to 15-sec.
Cheers,
TraderJF