Alternative Technical Templates.

[JimmyMac]

Those types of clear, well formed set ups are certainly worth waiting for aren't they. That level you entered was underneath a well worked support & resistance zone at 163.90-164.20 going back to early October.

64.20 also a 50% Fib from recent highs at 167.50 - 158.70

Add the obvious price action trigger of that zone being a pullback lower high through the bottom of this recent late Oct range of 167.0 - 165.0, & you have yourself a very strong confluence of events to back up your analysis.

Always beneficial to try time your trades when you put the odds as firmly in your favor as possible hey?

[JimmyMac]

Playing the odds & balancing the risk is what it's all about Tony. As long as you attempt to tip the odds as much in your favor as possible, you'll continue to remain afloat.

Keying into the market rhythm or momentum by utilizing the basics of price action will also ensure you keep it simple & uncluttered. I note you like to trade off the price action momentum wherever possible. That's a very good trait to adopt.

The British Pound also offered that option this morning as it opened into London trade earlier.

The aggressive move down yesterday through a couple of support layers kicked up a continuation signal off this mornings Asian high at 2.0618.

The lower highs off that level magnified a clear entry on the 15 & 5 minute charts. The odds & risk remained biased to the shorts & it was simply a case of where & when to be honest.

When you see dojis, spinning tops & bearish collectives springing up at lower tops in a downtrend, bouncing off previous session high & low markers, it makes for a very strong set up.

Always easier to enter with the momentum than try be a hero & pick tops/bottoms.

[tonymand]

Originally Posted by JimmyMac

Playing the odds & balancing the risk is what it's all about Tony. As long as you attempt to tip the odds as much in your favor as possible, you'll continue to remain afloat.

Keying into the market rhythm or momentum by utilizing the basics of price action will also ensure you keep it simple & uncluttered. I note you like to trade off the price action momentum wherever possible. That's a very good trait to adopt.

The British Pound also offered that option this morning as it opened into London trade earlier.

The aggressive move down yesterday through a couple of support layers kicked up a continuation signal off this mornings Asian high at 2.0618.

The lower highs off that level magnified a clear entry on the 15 & 5 minute charts. The odds & risk remained biased to the shorts & it was simply a case of where & when to be honest.

When you see dojis, spinning tops & bearish collectives springing up at lower tops in a downtrend, bouncing off previous session high & low markers, it makes for a very strong set up.

Always easier to enter with the momentum than try be a hero & pick tops/bottoms.

Do you sometimes use the 5 min to action your trade? I will drop to that level if we are moving fast in order to find peaks and troughs. In fact today with my EY in profit I moved down to a 1 min on GY to take a position

[JimmyMac]

I use whatever it takes to get the job done Tony.

I have a 5 minute chart up on each of the pairs I'm watching across all the monitors.

I'll occasionally drop down a few pegs into a lower timeframe chart if I'm seeking a precise trigger, yes.

I wouldn't advise it for people who don't yet possess a very good appreciation of price action or haven't been trading for too long, but if you've been trading for a while, with a sound set of trading plans, then why not?

[tonymand]

Thanks Jimmymac I have found that really useful. Your charts illustrate the point you made before about taking the first or maybe second pullback as your entry point. I am always looking to refine my competency and models in this area. Often taking the very first signal is too much like stepping in front of a speeding train and while each situation is different I hadnt really appreciated the significance of that signal on GU tonight. Many thanks

[tonymand]

Nice re-entry point. US CPI out the way so no collateral damage from that. Note the trendline break occurring right on the 60SMA. First challenge will be around 161.34. After that 161 is major support on the 4H. Keep an eye on the DOW as any weakening in equities will help this move along

[tonymand]

Nice double bottom for some or all of your profits. Clear rejection of lower prices and an inside bar with divergence allows an entry for the trip back up. My real purpsose in posting this though is to highlight the way you get another opportunity off the 60SMA although by that time I was fast asleep and unable to take advantage!

[jlmac27]

Hey there tony,
You basically trade off the 4H chart and enter/exit with the 15MIN correct?Or am I wrong in saying that.Looking at the 60MA seems one could catch some pretty big moves with it,just have to have a larger SL.What would you base a SL off of?Maybe a longer moving average could guide you to tell you when to get out?What is your take on the larger time frames?Or the bigger moves I should say.

[tonymand]

Originally Posted by jlmac27

Hey there tony,
You basically trade off the 4H chart and enter/exit with the 15MIN correct?Or am I wrong in saying that.Looking at the 60MA seems one could catch some pretty big moves with it,just have to have a larger SL.What would you base a SL off of?Maybe a longer moving average could guide you to tell you when to get out?What is your take on the larger time frames?Or the bigger moves I should say.

No I dont think so. I look at the longer timeframes to guage direction and likely areas of interest and use daily 4H and 1H. However my trading frame is 15 mins or occasionally 5 and rarely (as yesterday) 1 min. So my stop is tight as it is based in the 15 min trading frame and is usually based on a reversal candle pattern. My favourites are shooting stars, tweezers and inside bars. I am currently really interested in what JimmyMac is saying. If I have got it right he is looking at the first pullback to trade rather than at the critical fulcrum point. Thats what I already do if price goes clean through an SR but on a rejection I have tended to be in straight away. It also fits with something that Tess said about being in position already as you approach a major point rather than scrambling to discerne which way to go. I am off the firm belief that there are a handful of great opportunities on each pair each week and thats all you should trade

[tonymand]

At the risk of repeating myself but that óle 60SMA again!