Good to be back!
Here's a trade I have been watching for awhile and now sometimes catch in the London afternoon (given that I'm in the right time zone for it at present).
It came to me from Chris Lori a few years ago but I'm sure it is something that is known to many.
Here's a trade I have been watching for awhile and now sometimes catch in the London afternoon (given that I'm in the right time zone for it at present).
It came to me from Chris Lori a few years ago but I'm sure it is something that is known to many.
- I generally start watching the 1H and 15M charts of pairs I trade around 4.30pm GMT
- I then look for pairs that are approaching, or have already exceeded, their ADR (I run a 5 day ADR in MT4)
- I look at HTF S/R areas that price is approaching; price may already have hit an area and be consolidating
- As we approach London Close I will place my order at a HL/LH off the bottom/top of the range or S/R area
- Today on the EJ you could have also waited for a set up mongo style at the figure and/or as price compressed at the top of the range
As I understand it (full disclosure; I'm no expert) this trade works on the premise that as the London boys are packing up it becomes less probable that any pushes will be made beyond S/R areas, especially if a pairs ADR has been exceeded. Making it far more probable that positions will be covered, flows change and boom we have a reaction.
Please correct me if any of that is incorrect.
Have a good weekend boys!