Using the DASR for successful trading

Hi everyone

Well it has proven to be a difficult day for EU trading

Never did like Monday too much.

Remember to always have a tight SL on days like this just in case price breaks through.

That said, GU has been great with a super bounce of the 30 min just now for 10 pips!

Hi everyone

Well I missed the breakout! It's the old story of not having a pending trade up there just in case!


I'm just trying a bounce off the EJ "fast trend" EMA


Guys just wanted to mention that if you are setting up your "price_bounce" EA for a buy trade, don't forget to add your broker's spread!

yes, I catched EU M5 rise at 15:20h pinbar for 10 pips, ema 24 bounce..

Hi jdva

Very well done. It does work!

Hi everyone

The market was very difficult today but as I mentioned, by ALWAYS MOVING DOWN (or up in a rising trend!) when price action breaks through our support level on the lower time frames - to our next level of support - we can often catch a big move as what happened today off the 30 min chart support EMA on both EU and GU!

As I mentioned in Post No. 797 we really must keep an eye on other trading pairs just in case one of them is trending strongly and AGAIN today GBPAUD was a great choice - so every hour or so it's really a very good idea to go through all the crosses and see if any are NICELY ABOVE OUR 5 MIN CHART EMA!!

If anyone is interested in when and how to set up the EA just PM me


I have attached below my strategy tester results for just the last 2 weeks. At one stage the $500 account balance was over 20 % up! Ended just under 10% up

Hi everyone - it's a DOWN day!

This morning:

EU - 5min 62

AU - 5 min 24 (fast trend)

GBPAUD - 5 min 24 (fast trend)


Keeping a watch for bounces - no trade as yet - have a pending below trading range EU

Hi everyone

EU is DANGEROUS after a lot of movement overnight.


Best to stand aside until perhaps NY session for direction!

Hi everyone,

Well I'm going to say it again:

STICK WITH THE SYSTEM - IT WORKS!!!


Looking at EU - obviously our 62 EMA system was difficult today because the pair has been in "fast trend" mode although there were 2 nice bounces off the 15 min - one down and one up!

So if we followed the action using our "fastrend" template, there have been 3 nice trading opportunities so far!

Guys

I think we have to really learn how to use the indi's on our template - our Dynamic areas of support and resistance - to maximise our trades.

We are going to examine in detail how they all work together AND we are especially going to be looking at reversal into the trend after breakthrough of our EMA support/resistance areas and how to use this little trick to grab some pips and avoid loss!


See you tomorrow

Hi everyone

Well it's been the "fast trend" template today which is great on our main pairs

Hi everyone

Well EU - 5min chart - well we've had fast trend bounces, normal bounces (62ema) then a breakout!!

Hi everyone

Well it was quite a day on EU with bounces and then breakouts down and up again.


I've adjusted the template a little to show all the relevant "bounce" EMA's that we need on one chart (including adding the 12 ema to our template to make life a bit easier when the trend is very fast).

What we are going to do over the weekend is analyse EU over the last two trading days.

You will be SHOCKED when you see how many EASY pips were available by following our simple system!!

Hi everyone

I am going to introduce an extremely exciting new strategy to combine with our 62 EMA bounce/breakout system. One that is going to make a huge difference to our success as forex traders.

Well as you know I was going to analyse the last couple of days with our system in mind but since then something hit me about last Friday's trading day. It brought to mind a system which I demo'ed extensively some time ago and had some amazing results with. I just left it however because I got caught up with my "DASR" strategy. However last Friday - very early morning - (about 5am) I made a few pips buying GU (I noticed that it was being bid up like mad) and in fact I thought to myself "goodness the big boys in Asia are really gunning this up this morning - I wonder what their target is?" Well it was clear by 7.00am (or so) that the initial Asian session target was 6250. Then I thought "are they going to hold their buys over the weekend - do they think that next week GU is going up?" Well we got the answer, did we not, when the price shot up to 6300 - they quite obviously took profits because the price shot down again in a hurry!

What does this teach us? Well two important things:

1/ The "big boys" are in fact intraday trading for quick profits just like us!

2/ The "big boys" are gunning to definite target levels. If we can actually
identify those levels we can trade WITH the big boys. And when we trade
WITH the big boys we can be VERY certain of a sucessful trade!!

Before I continue, I just wanted to say that I was going to start a new thread under "trading systems" outlining this great strategy but then I thought "why share this strategy (which has been put together with a lot of "blood, sweat and tears") with all and sundry, most of whom let's face it have no absolutely no appreciation at all for all the hard work that goes in to developing and sharing these systems.

So, I'm only sharing this wonderful new strategy with those faithful followers of my "using the DASR for successful trading" thread. All others get lost!!!


More info in my next post!

Right - I call this strategy: "Gunning the Target"

OK - Up till now we have been attempting to "bounce" trades off the 62 EMA (on all time frames) , the 24/28 ema's (vegas daily) on the 5 min time frame and recently the 12 ema for extremely strong trends. Also we try to use breakout pending orders for when price action strongly breaks through all our resistance/support EMA's (including the 144/169 EMA which is our last resistance/support line of defense).

The strategy works great but the big problem is always the TARGET! Many times we just don't know how high (or low) the "bounce" is going to extend so we generally scalp 5, 10 or maybe a few more pips (if we're feeling adventurous!). So we are going to employ a totally new strategy that has a definite TARGET in mind and looking back at last Friday (just for example, but the strategy works well on just about every trading day) we should have easily - no sweat - picked up 80 pips with very little effort or stress!

One has to be confident of what target we are looking to attain and in actual fact we CAN take advantage of a very neat "trick" - take a very well educated guess at what levels the "big boys" (large institutions, etc., that actually buy/sell enough of the currency to move the price) are targeting for the day and we don't fight them - we join them

Hi everyone

Well we had a nice little bounce at 7.00am this morning off our 62 ema 5 min for 15 pips.


More excitingly, we had 60 pips through our new "gunning the target strategy"

WOW!

Hi everyone

OK maybe I should rename the system to "GUNNING THE NUMBER". Guys, as I discussed above, what happens on many days is that we get a buying or selling frenzy during the night (Asian) session, we then get a minor reversal followed by a breakout continuation of the overnight move. (Today and last Friday was no exception!)
What's going on? Well the guys are targeting a "number". Is that any number? Hardly likely! No, just about always it's a BRN. Of course, we don't know which BRN they are targeting but really it's not hard to make an educated guess!!

Second part of this great system is trading what we call BRN "sweep". What is that? Well what often happens is that price action often stalls at or not far above/below a BRN and then sweeps up and down through the BRN two or three times before continuing on up or down. Why does it do that? Well imagine lots of small traders like you and me (probably 1000's!) have stops placed around that BRN - so the "big boys" are simply "stop hunting" up and down. Nice, hey! It's a big fish eat little fish forex trading world that's for sure!

Of course, if we KNOW how they operate and trade WITH them we can make a few pips!!

So what I've done is combine our "bounce off the DASR" system with this new strategy and guys it's not bad at all!!

Below I've posted two charts and I have ringed the "sweep" area (through 2850) as well as the obvious daily target which is 2900 (so far) as well as the 3 bounces (so far) off our 15 min and 30 min chart DASR areas (62 EMA envelope).

To make life easier and to help us trade this new "gunning the number" strategy, I have made a new template. I'll post it and go into further detail about the strategy in my next post.

Hello Jmtini,
well I still don't get, how do you deside which BRN will be your target and how can you be sure, that the price will continue from current BRN in preceding direction and will not reverse. As many BRNs works as strong S/R and points of reversal.

Hi colombino

Good question. We'll get there! They are ways of working that out. The two main methods are:

1/ the time of day - i.e. if it's early in the morning after a strong move during the Asian session we can expect continuation after some retracement which usually includes a couple of "sweeps"

2/ MOST IMPORTANT is the amount of pips price action extends through the BRN - I'll be explaining that neat little trick in my next post later today!


Rgds

Jerry