Alternative Technical Templates.

[tonymand]

So for completeness Ray did you work out money management, likely target etc. It quickly reached a 1R profit level at the previous support, was that sufficient. Or are you aiming for more, in which case have you kept your initial stop, moved to be etc. These things all form part of your trade planning before you pull the trigger. This all comes with practice but you have got the first step which is to stalk your low risk entry. There is no right or wrong here. For me I wouldnt have taken it, already down a long way for the day, risk reward round about 1 because the OB gives you a further away stop. Nevertheless if the trade suits your parameters then good on you

[tonymand]

OK you answered the TP while I was typing. If that was your plan all along then well done.

[Tess]

Originally Posted by Ray_1

I took a trade at the GU.

An OB formed which resisted a trendline and close below the resistance level.

That's well spotted Ray

Just be careful how you play these when the environment slows down a little & the psychology isn't so stretched.

In aggressive one-way traffic such as we're witnessing recently, it's not uncommon for the majors to print excessive (outside) intra-day range measures.

Today the Cable has printed 130% of it's average days range, to the 1.7781 lows. The p/b you took allowed a measured (1:2) risk reward play if you timed it ok & in this type of scenario, is just about a no brainer play.

In more sedate periods of activity you could get caught on the blind side as New York desks come to the table & possibly reverse the directional flows on order driven trade.

That's when it pays to take note of the average daily moves & where the percentages are at as NY comes into play.

Jimmy's 1min-15min combo visuals would also have assisted pretty fine on your continued short trade though

[kagein]

Does the ADR refer to the range in each session or overall ?

[Tess]

Originally Posted by tonymand

That came from bpips, I think this is the one

That's not the one they used in the end Tony. It might well be totally adequate for the purpose (I haven't looked at it), but they got a hold of some (mod) mq4 files detailing intraday/weekly/monthly time variable averages.

Neither of them are here at the moment, Jos is due in later - I'll see if she stored them on another system someplace. The other guy's here shrugged their shoulders, so they're not much help.

[Ray_1]

Originally Posted by Tess

That's well spotted Ray
Today the Cable has printed 130% of it's average days range, to the 1.7781 lows. The p/b you took allowed a measured (1:2) risk reward play if you timed it ok & in this type of scenario, is just about a no brainer play.

In more sedate periods of activity you could get caught on the blind side as New York desks come to the table & possibly reverse the directional flows on order driven trade.

That's when it pays to take note of the average daily moves & where the percentages are at as NY comes into play.

Jimmy's 1min-15min combo visuals would also have assisted pretty fine on your continued short trade though

Hi Tess,
Can you teach us on how to take note of the average daily moves? By using the ADR?

[Tess]

Originally Posted by kagein

Does the ADR refer to the range in each session or overall ?

It's the 24 hour timezone George.

[Tess]

Originally Posted by Ray_1

Hi Tess,
Can you teach us on how to take note of the average daily moves?

There’s nothing really to teach Ray.

If you know that under current trading conditions, Cable is registering an average daily range of 170 & price prints a low of 1.7780 (which represents an intra-day high to low extreme of 220pips or 130%) during the late London morning, then it maybe tells you that it’s becoming a little stretched? Like a warning signal to be more aware of the price action around those types of numbers.

Same with Swissy. It’s current ADR is floating at c115. Today’s low to high print registers at 120, therefore it was in-line with it’s normal range parameters when it hit the days high earlier into the mornings London trade @ 10.30am.

Which is why Jimmy cautioned against maybe getting too excited with re-loading on longs. Swiss usually adheres quite well to it’s intra-day & intra-week average readings. So too does Euro.

As with other technical price aid tools, it’s simply something to be aware of when considering the whole picture. By no means is it a guaranteed no brainer, but used in tandem with other price related material, it can be a handy reference.

[pipvader]

Not a good days trading today, i got stopped out on the OB i took on the cable at 7:45 gmt

[Ray_1]

I took a trade at the GU just now.


Stop loss at 1.7761.
This trade is based on resistance of trendlines shown in yellow and red. An IB formed and I entered.