Still going for the 0600 trendline breakouts?
Managed about 30pips from the asian session break and 0700 trneldine break today.
Hi SanMiguel,
Yes trying to trade the early breakouts. It would be great if you could post your charts for us to learn. What time in GMT do you trade during Asian session ? I also traded the Euro Today. Will post my chart in the next post.
Thanks,
Muthu.
I will do but I use a slightly modified method to this. Whilst I still use the trendlines, I also use the Asian session High/Low depending on whatever looks best.
As a trigger for your engagement?
Or to establish dorminant flow?
Or just for drawing trend lines?
As a trigger for a trade but combined with a momentum move.
I also use the trendlines from this method but once the 1hr trendlines are drawn, I watch it on the 5min to chart to get a better entry.
So, itâs a momentum play in both directions regardless of dorminant flow with a confirmed entry signal on 5m?
What pairs are you trading this play?
Hi Muthu,
I just now noticed that you are using Interbank Account. I thought its the broker with server time as EST. But after downloading it I realized its not so.
AS per first post in this thread, London strategy is based on EST time 12 to 4am.
Request you to clarify the doubts.
Thanks and Cheers !!
Hi Kanakzz,
I am trading âearly/too early breakoutsâ and the trades are based on GMT times. I have no idea what time that turns out to be in EST unfortunately. I just traded an early (too early) break out on cable. Will post it soon. The expert trader that introduced this method to us has recommended setups as in the first page. However, i am just tweaking the system a bit to see how it works as sometimes moves happen bit earlier than the time recommended and i am trying to make use of it. If you have not tried this system yet, i humbly suggest to first go by text book before you can tweak it a bit.
Regards,
Muthu.
Cool !! thanks for your post. I have been following this post and able to find out that your strategy also work really great.
Wish you all the success.
Cheers !!!
Most Welcome ! I also wish you and all other readers here good success with your trades.
Regards,
Muthu.
What do you mean by dorminant flow? Iâm not using it because I donât know what it is :).
But yes, I will take a long & a short if both setups occur (on average usually only 1 trade per day though) if momentum looks to be moving fast in one direction on the 5m chart - my signal is a 1 or 2 candle close above the trendline / asian session highs/lows according to what I feel looks good on the day (with other SR lines about, trendlines, etc.)
Mainly GBPUSD but I occasionally look at EURUSD.
I only look from 0700 onwards though.
Markets are zero sum transactions.
Everyone who executes has to use an opposite side transaction to liquidate. Traders liquidate for a cash loss, or liquidate for a gain, and that order then joins the [B]dorminant order flow[/B], [U]adding to the momentum[/U].
Everyone piles into one side and what we see as price movement is the liquidation of losing positions.
Another implication is that liquidation is what drives the market.
For example, in a rising market, [U]the best place to buy is a [B]long-liquidating break=breakout[/B].[/U]
You want to buy just about where the selling orders are running out.
People are taking losses and decide to liquidate and thatâs the [B]dorminant order flow[/B].
When that runs out, then the market moves the other way.
What we see is the ebb and flow; we are trying to buy low and sell high but what is typically happening is people are buying high and selling low.
[B]To participate, [U]you have to know[/U] where the losing order flow is.[/B]
And you need to pick the relevant pairs for the relevant time.
Thatâs why I was asking what pairs are you trading.
Dominant flow.
Politically correct for⌠Current trend:p
Ditto!
What took the sitting crowd in here so long to send one their shooters along?
Must have had a brain drain first to figure out what bullets to shoot. 