Top movers overnight retracement

The top-movers overnight retracement strategy is probably the simplest strategy I have seen.

Step 1. Identify the top movers at the end of the day. Step 2. Wait for a new daily pivot to be formed at the shift to a new day. Go short with a 50 pip target or to the daily pivot.

The first attached image is AUD/CAD.

The second attached image is a group of AUD pairs because they are all in unison with the strong AUD. Just look at the pattern on all charts for a perfect illustration of this simple strategy. The beauty of it is that it works overnight when you are sleeping. Is there any better way to earn a living?

You mean to say if today EUR/USD got a new high..then after New York Close, we could sell it for 50 Pips.

No dilkasraj. I am looking at the close of my 24 hr period GMT. As I look at the top movers at 22.15 GMT the four best candidates are EUR/NZD, CHF/JPY, EUR/JPY and EUR/AUD. I shall wait until just before midnight and confirm the top movers. They may have changed. Then, at midnight, the new daily pivot is calculated and drawn on the charts and the top movers list changes because we have a new day. Short the four top movers from before midnight and target 50 pips. It doesn't really matter what the pairs are. What is important is that they had a sustained rally throughout the day, which has taken price to a new high which will retrace. Let's try it. I will post the charts of my top movers just before midnight GMT, then we'll wait until morning and see what happened.

These are my top movers at 23:30 GMT. I shall place a stop order to catch downward movement.

subscribed!!!

iam trading sometimes a quiet similiar strategy

[quote=tellboy;8236028]No dilkasraj. I shall place a stop order to catch downward movement. /quote]

Where will you place your stop order?

tellboy, what trading platform are you using that allows you to easily put in trades with stops and profit targets for forex trades? Thanks

I am using IG Index with their Pro Real Time. It takes a little time to learn all its functions, but it is extremely flexible. You can pre-set your stops and targets and then enter your position with one click. You can also set stop and limit orders with the same targets and stops. It is much easier to use than MT4.

[quote=mary4x;8236140] Just below the last bar.

Here is the outcome of last night's trades. Price did not retrace as much as usual, which is a bit of a disappointment. Here are the charts below. Notice how price reached its bottom on all charts at 7 am GMT and resumed its upward trend. My strategy for using this pattern is followed in my other discussion on the Pivot Bounce (See http://www.forexfactory.com/showthread.php?t=537561) .

Is this a candidate for a top-movers overnight retracement? Let's see on Monday morning.

so its only for pairs that have rallied up ? or can you do it with pairs that have sold off as well? Thanks

Great idea.

I only choose those that are at the top of my 'top movers' list and show price touching a significant new high, preferably with a '00 resistance level, like the one in the GBP/CHF chart above. The pairs you choose are entirely up to you. Good trading.