False London Breakout Strategy

[kodziro]

Originally Posted by shandy

Hmm yeah, I don't use MACD, just Stoch. I see MACD did have divergence, Stoch didn't. Do you check both of them for divergence usually?

Yes I check them both. MACD is more like a trend-following momentum indicator.
Check today`s E\G setup and compare to last G\U.

[kodziro]

Hi

U\J: loss ( or BE if you move your stops after price hit resistant area - about 25 pips )

G\U: without div and against maind trend setup, ADX was indicate breakout ( raise from below 25 level and trending )

Cheers.

[shandy]

Originally Posted by kodziro

Hi

U\J: loss ( or BE if you move your stops after price hit resistant area - about 25 pips )

G\U: without div and against maind trend setup, ADX was indicate breakout ( raise from below 25 level and trending )

Cheers.

I saw GU as having a small bit of divergence yesterday as per the attached chart. Did you take the trade even though you didn't see any divergence - wouldn't you wait for a re-test of the area? I haven't seen the ADX "rule" before, I only thought you used it if you had a good signal i.e. with divergence, but trade was against trend - not without divergence?

[shandy]

Nice GU trade just now - 3 top divergence I believe?

[kodziro]

Originally Posted by shandy

Nice GU trade just now - 3 top divergence I believe?

Yes, very nice. On E\U nice short too. Monitor now daily low from yestreday on E\U.

[kodziro]

Originally Posted by shandy

I saw GU as having a small bit of divergence yesterday as per the attached chart. Did you take the trade even though you didn't see any divergence - wouldn't you wait for a re-test of the area? I haven't seen the ADX "rule" before, I only thought you used it if you had a good signal i.e. with divergence, but trade was against trend - not without divergence?

Actually I did wait for retest ( see picture). ADX told me that not to trade in area our SUP line ( with this area, based on that area ).

[shandy]

Originally Posted by kodziro

Yes, very nice. On E\U nice short too. Monitor now daily low from yestreday on E\U.

And GU just hit S1, giving a 1:5 - 1:6 trade. Nice.

[kodziro]

Two trade`s today:

E\U:with daily low, trend ,div - TP not reached.

G\U: with daily low ( pivot s1 ), trend - TP hit ( TP defined by pivot R1 also hit with nice amounts of pips).

[shandy]

So a nice EU trade so far, divergence, with trend. Still to reach target of course (and let's see if it reaches S1).

GU a tricky one. Had divergence at yesterdays high and R1, and a pin bar followed by a doji / spinning top, so could have been a failed short entry. In this situation perhaps best to wait for break of the doji low?

[juicyt]

Any chance Kodziro of posting live trades as you take them? Or as you are in them?

Juicyt