London Breakout 1

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886

My EU trade turned out the same way today.

887

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888

Regards,
Muthu.
Chennai.
India.

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889

hi

I m fairly new to trading and need to define what a swing High/low. Came across this

trading-strategies.info/node/17

I found it extremely useful and cleared confusion up for me. Hope it helps other people like me struggle to define to what is a swing High/low. Theres a great 15 min video at the bottom of the page, walking you through a real chart.

regards
bb

890

Thanks for the link.

Best Regards,
Matt Jones .

891

I saved the initial chart (the one i save after drawing my trendlines) in a hurry and i misspelt the name so i couldnt find out where it got saved in my pc :confused: So sorry for not posting the Initial chart. Anyways, this is how the trade went after trendlines were drawn.

Regards,
Muthu.
Chennai.
India.

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892

I am out of town tomorrow Feb 24 and I will not be able to trade. FYI.

Regards,
Muthu.

893

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+11 pips

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+16 pips. No bottom trendline for the Cable today.

895

Good trade BlackSwan.

896

Hi Blackswan and muthusai2000

can i check the way im setting this up because based on rules at beginning of this thread i get different result. If you guys are using different rules can you clarify what they are please.

first step i do the following:-
5 candles: from midnight to 04:00 EST (including the 04:00 candle). Because im UK this 5 am to 9 am (including 9 am bar). I then take valid swing high/low in this range, if they there.

Second step i do:-
then i take the First valid High and first valid Low pervious day.

i have attached a Picture of a chart of 1 hour Eur/Usd for this morning.

any comments and advice would be much appreciated.
thanks in advance.
BB

Our working range includes 5 candles: from midnight to 04:00 EST (including the 04:00 candle).
Optional: draw a midnight vertical line for visual aid.

With those 5 candles look for valid swing high and swing low of the price.
Draw a downtrend trend line connecting a found swing high to the most recent swing high of the previous days (make sure the last one is a valid high to draw a downtrend trend line through it).
Do the same for a swing low: connect it to the most recent swing low of the previous days, make sure you are putting in the right trend line using the rules of drawing uptrend trend lines.

If a trader sees, for example, no swings high in the 5 candle range, that means there will be no downtrend trend lines this morning.

The Entry is on the break of either one of the two trend lines and is immediate without waiting for a current candle to close. A protective stop is placed just above/ below the candle that broke the trend line.

EU1H.jpg700×420 39.9 KB

897

I am looking at five one hour bars from 04:00-09:00 GMT, or starting 28 March it will be 04:00-09:00 BST because of DST in the UK.

I draw the trendlines using what I think we are calling “best fit”. I’m looking for the best swing high/low to connect with the five bars. If it doesn’t look right then I won’t draw a line. Take a look at today’s Cable chart, there is no good swing low to draw a line off of and the trend was to go long, so I knew I wouldn’t be taking a short trade.

Sometimes depending on the price action and the chart I will enter the trade early, before the 08:00-09:00 candle closes. I think that was the case today.

Muthu has a variation on what I am doing, I think he trades earlier.

898

Muthu has said previously he trades this a bit earlier although I think he does EUR/USD and the european markets open an hour before london anyway. Study the charts he has posted his trades have been well documented.

With regards to the hours 8:00-9:00 I have found that your trades can be caught up in the large swings in the market when 9:30 gmt news affects the GBP markets.

BettleBox best method is backtest to see what has worked, then forward test on demo account to know whats practical and iron out the kinks.

Thanks go out to San Miguel for recommending the Big Dog Strat as it has helped cream some pips this week on the US breakout.

899

Cable:

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EU:

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900

Blackswan, I got the same cable lines as you this morning. no news expected for the GBP this morning so it shouldn’t have a large swing.

how do u post pics up? do you have to upload them to the net then link to the picture url?

901

I am taking screen shots and cropping them using a program called Paint.net.

I then save them as a PNG file and use a site called “imgur” to upload them. You can then use the forums editor to insert the image into your post.

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The long trade on the EU failed, my stop was the bottom of the current bar. -20 pips.

903

thanks for the advice on uploading. i’ll give it a whirl.

with the EU trade, could the losses be filtered by using the 4h trend as a filter, i.e. the
4h trend this morning was heading down so we should be looking for a short trade.

PS while i was typing this my trade on cable got stopped out for -16pips! :frowning:

904

I don’t worry about the four hour trend for the entries. I do consider it for the exits, if it’s aganist the trend I look for a quick exit for 10-15 pips like yesterday. I think you miss too many oppurtunities by not taking those trades.

The mistake I did make was usually wait until it breaks three pips above the line plus the spread. So if I had set my order correctly it would have never been hit.

I am still in the Cable trade, I don’t set the stop too tight with Cable.

905

i’ll look forward to seeing your result from the cable trade. can you show on your image where you did set your stop just so i can assess thanks