Disliked{quote} Thank you, dafa, for your post#18. I am studying EUR/USD only. So, I am not sure, whether this technique will work for EUR/GBP or not. But, one thing is sure. I will take trade only when the candle is closed.Ignored
{quote} Hi Kj-fx. Yes, I know you trade only EURUSD, but this candle was finished very similar. If it it EIURUSD, do you trade it or not?
To answer your question, dafa (Post#21), let us have look at the following figure:
Figure - 5
The candle#1 is 4.00a.m. Jan-15-2016 (NY Time) which more or less resembles the candle of your question. I would have put the buy- stop order at the high of candle#1+1pip+spread, stop loss at the PSAR value, and take profit at the buy entry + the range of candle#1. The profit was achieved at 8.00a.m. Jan-15-2016 (NY Time) candle. I had not taken that trade as I was away for my other project.
- #27
- Jan 25, 2016 6:14pm Jan 25, 2016 6:14pm
- Joined Jun 2014 | Status: Invisible | 1,471 Posts
Please see the following figure showing the two trades: {image} Figure - 6 Candle#1 is 4.00p.m. dt.Jan-20-2016 (NY Time). This setup is based on trend confirmation from 34EMA, & 13EMA. Candle#2 is 4.a.m. dt Jan-22-2016 (NY Time). This setup shows how 34EMA is acting as a dynamic resistance.
Here, I killed the first (winner), lost the second and did not take the third (winner)...
Thank you, Go5 for your input (Post#27). For your question - "how many candles you allow in between the setup and trigger?", the answer is - I will cancel that pending order when I get opposite side trade setup.
We have two more examples in the following figure:
Candle#2 is 2.00p.m. dt Jan-26-2016 (NY Time). This setup shows how 34EMA is acting as a dynamic support.
We have two more examples in the following figure:
Figure - 7
Candle#1 is 1.00p.m. dt.Jan-25-2016 (NY Time). This setup is based on trend confirmation from 34EMA, & 13EMA.Candle#2 is 2.00p.m. dt Jan-26-2016 (NY Time). This setup shows how 34EMA is acting as a dynamic support.
- #29
- Last Post: Jan 31, 2016 9:51am Jan 31, 2016 9:51am
We have some more examples. Let us study the following figure:
Candle # 2 is 3.00a.m. dt Jan-27-2016 (NY Time) one. Though, 34EMA has acted as a dynamic support, I would not have taken that trade in normal condition. The reason is there is no convincing retrace. But, there is another situation which strongly suggests that this trade will be very good one. Let us see what is that.
If examine the circle prior to candle#1, you will find that 13EMA touched the 34EMA and bounced us. This I consider as a "Kiss of Love". This touch is followed by couple of bullish candle (one of them is candle#1) closed in top 30%. When the trade for candle#1 is triggered, the market gives the clear indication that it wants to go higher. Because of that, I would consider the trade of candle#2.
So, whenever, I see the "Kiss of Love" followed by couple of bullish candles closed in top 30%, I believe that probability of my trade setup success is very high. Remember there is NO GUARANTTEE. So, always use the proper trade management.
Candle # 3 is 2.00p.m. dt Jan-27-2016 (NY Time) one which also a time when the US FED released the FOMC meeting minutes. Here also, 34EMA has acted as a nice dynamic support.
Figure - 8
Candle # 1 is 2.00p.m. dt. Jan-26-2016 (NY Time) one. It gives good example of 34EMA acting as a dynamic support.Candle # 2 is 3.00a.m. dt Jan-27-2016 (NY Time) one. Though, 34EMA has acted as a dynamic support, I would not have taken that trade in normal condition. The reason is there is no convincing retrace. But, there is another situation which strongly suggests that this trade will be very good one. Let us see what is that.
If examine the circle prior to candle#1, you will find that 13EMA touched the 34EMA and bounced us. This I consider as a "Kiss of Love". This touch is followed by couple of bullish candle (one of them is candle#1) closed in top 30%. When the trade for candle#1 is triggered, the market gives the clear indication that it wants to go higher. Because of that, I would consider the trade of candle#2.
So, whenever, I see the "Kiss of Love" followed by couple of bullish candles closed in top 30%, I believe that probability of my trade setup success is very high. Remember there is NO GUARANTTEE. So, always use the proper trade management.
Candle # 3 is 2.00p.m. dt Jan-27-2016 (NY Time) one which also a time when the US FED released the FOMC meeting minutes. Here also, 34EMA has acted as a nice dynamic support.