Thanks Kodziro for the helpful reply, as always.
So, from what I understand:
Yes you are understanding correct. If we are in main trend then we could expect larger move. Personally I play for bigger TP if at previous day we had breakout in direction of our future trade. ( short term trend is now up/down) If daily trend had same direction even better. Daily MACD change color along with earlier move also make me aim higher. — see todays U\J I already got 3*SL but I`m aiming higher. ( so far we got also valid signal in E\G )
Keep in mind that every price action must have solid base, sometimes is daily low/high , earlier engulfing, checkmate area
As for main trend I define it by Daily MACD ( positive /negative value ) or 50 Ema.
Attaching today’s U/J. I saw the setup on U/J, E/J and traded the E/J, exited at 2SL. Did u enter at the same place that I have indicated in the pic? Because the trade still hasnt reached 3SL. So, I’m guessing you entered at the previous candle? But that’s not strong price action. Or am I missing something?
Also, could you upload the E/G chart and the reasons you entered there?
For longer term trade, you look at the change in color in the daily MACD, i.e, from red to green or green to red? Would be really helpful if you could show the chart for a longer term trade, and exactly what you look at to decide on it.
Let me say again, this is an awesome system, with a stunning strike rate, when properly applied. I have made a few trades, all were profitable.
According to the rules on post 1, I believe Kodziro uses a max 15 pip stop on UJ, or uses ATR 20 - which at that point was showing a reading of around 15. Based on that as an SL the trade would have made 3xSL (reached +57 according to my chart). When its a relatively big candle like that, another method may be to put the SL at the 76.8 fib of the candle (17 pips on this candle), in this case price reached the 61.8 to the pip and then headed up. I’ve often found that if it breaks through this level it’s usually going to keep on going. Many ways to decide on an SL, but I guess the point is that putting it at the bottom of the candle would have been to large an SL for this pair? Still a +ve trade though!!
Actually today we had long term trade opportunity in U\J ( see daily MACD in picture 1). Last Friday tell me to aim for bigger TP ( see my previous post ). I know that if I had trade opportunity It will be with SUP line ( daily low was out of reach ). So when I see doji ( with nice base – scroll back ), divergence at both indicators Stoch, MACD ( which is rare – give extra confidence ) I pull the trigger. If doji was under SUP line I definitely want to confirmation ( close next candle ). Of course you could wait for that confirmation – most times it will work but in that case you would have to extend your SL, or wait to retrace large candle for fixing your SL although price could keep going up or put SL like Shandy mention.
As for E\G check attached picture 2 and compare to g/u trade on 11.07. Keep spotting trade setup and with time you will notice that pattern repeat itself ( and looks similar ).
Hi Kodziro, was this a valid trade? Strong price action off previous daily high with nice divergence, got stopped out though. Would you have taken this trade? If not, what would have stopped you?
No I don`t take trades like that. Notice how many candles ranging under daily high, after that price breaks box of this candles range and close below it. Then our signal was created. ( risk reward ratio was less than 1 ).
I want to see clear move to daily low\area and see price action.
Another thing is that Daily MACD tell us to go long( see chance for long ). Main trend is up, so you could consider go with classical breakout not against it ( I trade like that ).
Today`s setup on E\U. I also add similar trade that occurred in 2 weeks time. Notice that two of them reject at 50 fib. level and 50EMA ( line of main concern for intraday trading ) and there I would look for TP. All trades against trend.
Also G\U give us signal to play long ( Daily MACD color change ). And like yesterday in E\U we didn’t get signal with box SUP, price already go up, so we should trade for classical breakout. ( with box SUP/RES or better with range of two last candles in our box ).
Nice looking trade I think, although against trend.
May head to the PP which would give a 1:5 trade, may bounce at R1 / previous resistance which would almost give us the 1:3.
Lets see how it pans out.
Edit: Hmm, strange trade! News spiked price to the R1 / 1:3 target, now it’s heading up again - got lucky on the news I think! Never mind, still a successful trade.
Edit2: Well, price has reached the PP and may even break through here and head for S1 area - if only news hadn’t got in the way!!
Notice that area R1 was daily high. I was looking for price action there. ( counting on 3-top diverg ). I was hope for nice rejection and i did get it by the long wicked news candle so I don’t trade.
As for signal that you marked on picture. Trend was against us, signal looks fine but had no base ( scroll back to left ) If only he bounce at our daily high/ R1 then will be valid.
PS. MACD color on E\U, G\U had changed so be prepared for go short on box RES, or go with breakout if price did not test it ( I could write few words about breakouts if false breakout didn’t occur, its rather rare setup - average 1-2 trade per week but profitable and you could trade it along with thread strategy )
Thanks Kodziro. Regarding the EU trade yesterday, I had the daily high as where it did bounce, as per the aqua line from the 7:30GMT candle?
Would be good to read what you have about trading breakouts if a false breakout didn’t occur!
Yes, there was daily high there and later on could work like support ( signal bounce of it ). Candles ( small bodies- ranging ) gathering around SUP/RES or daily low/high level tell us to be careful ( bulls fights for new high ). I want to see strong move and rejection. I think people was counting on break important weeks high.
Yes very huge and long wicked. Look at U\J was nice trade with daily low.
Hi Kodziro, could you post a chart please? I don’t understand the daily low bit. Also, any other trades you’ve taken the past few days would be nice to see too 
Hi.
This week I took 2 trades so far , one yesterday on U\J and one G\U in monday ( with breakout ). Check both in pictures attached.
nice trade on the g/u there 
. But i still am confused with the u/j trade. Where is the orange daily low line in ur chart coming from? attaching my u/j chart, i cant see any reason to put a line at that point. could you explain a bit more please? right now, am in e/u trade, took it off the 8:30 doji
