Alternative Technical Templates.

[Tess]

Originally Posted by johnnykanoo

My question is about average daily range.

Ive come across a piece where you guys talk about average range of a pair. I would like to incorporate this into my arsenal but frankly im not sure how to. First how do I find the average range of a pair, Second can you help me to define what that means.

Hey John,

Yeah we keep tabs on the average daily & weekly range prints of the pairs on our watch list.

Simply put, they record the high to low extremes which a pair travels during the trading day & then averages those extremes out over a given period of sessions. Usually 1...5...10 & 20 days are the markers.

I tend to take a note of the weekly ranges. Jos observes the daily ranges. But then, we got differing aims & objectives so each to their own.

One of our colleagues plots them on a computer program & spews them out every morning for us, but JimmyMac came across a file a while back on the thread below.

ADR indicator on MT4?


If you run Metacharts it'll pop the data straight onto your charts for you. Just saves running a seperate data sheet for the info.

[kagein]

It's been said loads of times but i'm gonna say it again, this is a fantastic thread. Input from the regular contributors is invaluable and has with out question shaved months off my forex education and im sure of other posters alike.

If any of you guys are in my neck of the woods and fancy a big mac with a cheap beer at a student bar...im your guy!!!!

[Tess]

I see that top line resistance marker has contained the bullish activity today then huh?

Note also the (recent) demand fulcrum bounced price off the 1st retreat from 2.0100 in mid-morning London trade.

That lower consolidation range churned much of yesterdays Tokyo & early London activity before making a run for the supply level into late morning. These levels will quite often result in successful "tests" & are well worth keeping a sharp eye on.

Obviously, this pair benefited from the dovish Fed chatter & the knock-on ECB hawkish rhetoric earlier, but from a technical standpoint these levels can be confidently flagged & tagged as price gets shunted back & forth.

If any of you managed to avail yourselves of a few bucks on the back of these ping-pong levels today, then well done!

[Tess]

Originally Posted by Tess

We will also get aboard a pair on an approach to an important level if the opportunity presents itself via a smaller timeframe reference.

Reason for that is so we can monitor the initial reaction & get an “average position” to maybe front run a possible aggressive breakout.

This morning has thrown up a good example of the above comment made in yesterday's post (#737).

This is the type of play which Jos & her mob will take on if the technical environment tips the nod.

GBP is quite obviously well bid into this mornings London activity & has printed a very shallow pullback in light Tokyo trade.

Those who choose to engage via the IB/OB trigger had a beaut of a trigger on their 15min frames just a few moments ago.

If you also prefer to drill tightly into that zone, you could haul up a fast timeframe (1min?) to cut your entry to the quick.

Positioning yourself ahead of the hard resistance line offers you the chance to either bail out on any strong rejection or hang loose with a relaxed stop to check the intent & support of any (buy) stop traffic the other side of that 2.0100 ceiling.

You now have a target zone above here @ 2.0220 to aim for & can trail your entry behind the peaks & troughs on either the 1min frame or the 5/15m charts depending on the breakout strength. This type of entry also allows you to peel off partial profit in case of a pullback to the b/o line.

Those who prefer to wait for a possible pullback of this upper line to "test" the genuine intent of the Bullish move also now have a marker to work with, knowing that 2,0100 is a reasonably reliable s&r camp at current levels.

[tonymand]

Nice assessment Tess, I am looking for my entry now on retest

[Tess]

Originally Posted by tonymand

Nice assessment Tess, I am looking for my entry now on retest

....and you certainly got the green light for that Tony

Price now marching on handsomely toward next level s&r.

Either option has paid the wages today on & around the activity zone.

[tonymand]

Just to add to Tess' charts I got my entry from the 5 min, retest of the days high, inside bar and divergence - sweet!

[Harry Potter]

Hi all!

Can anyone explain that 100 pip candle on GBPJPY at 12:30 GMT?
As far as i know ther weren't any Pound/Yen related news near.

Thanks!

[Tess]

Originally Posted by Harry Potter

Can anyone explain that 100 pip candle on GBPJPY at 12:30 GMT?
As far as i know ther weren't any Pound/Yen related news near.

You need to be aware of any news/data which will also impact upon USDJPY when you're following the crosses Harry.

Pound/Yen is the result of GBPUSD & USDJPY vibration.

There was U.S gdp & employment claims printing at 12.30GMT. They printed in-line with expectations & a good chunk of participants were betting the data would come in Dollar negative.

Also, we're only a few days away from Quarter end. Funds will be looking to square their books & balance up into 2nd Quarter. You need to be very aware of these events as Hedge Funds, large firms, Bank desks etc attempt to influence levels in order to trim out/load up etc on certain pairs.

They'll take advantage of these situations to work orders thru the system & aggressively lever themselves in & out of adverse positions.

[kagein]

Originally Posted by Tess

Also, we're only a few days away from Quarter end. Funds will be looking to square their books & balance up into 2nd Quarter. You need to be very aware of these events as Hedge Funds, large firms, Bank desks etc attempt to influence levels in order to trim out/load up etc on certain pairs.

They'll take advantage of these situations to work orders thru the system & aggressively lever themselves in & out of adverse positions.

As retail traders, do we have to be more or less aware of this kind of activity from prop traders?