London Breakout 1

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83

Market was a little trendy today… Stuck on to the trade and got 20 pips…

GBP/USD was better…

84

Your table is correct but I was using EST in my post as opposed to EDT in yours. EST is always 5 hours behind GMT save for 2 weeks of the year when the clocks change back and forward.

As we are currently in BST I would add an hour to GMT for my 5 candles. However, I think most of us agree that the 5 candle period to be used should be the 0400 to 0859 London time irrespective of whether we here in the UK are in GMT or BST as candle ending 0959 would be too late for a London breakout.

85

nutrader & red ear

Yeah you’re right, we need to go by downtown London time. The 09:00 to 09:59 candle is too late. We should be looking at the 04:00 to 08:59 local london time candles.

I’ve got a print out of the original strategy that[I] J Carter pick pocketed from Ed Revy while they both stood waiting in line for “McD’s happy meals”. [/I]:):):slight_smile: I feel we’ve been following the original strategy correctly, but we should petition to modify the original and use local London time 04:00 to 08:59.

When J Carter gets back we can ask about the changes… I heard he was last seen headed for East Texas… something about an oil patch…?

PS google Ed Revy forex strategies, you’ll find some good stuff!!!

86

4th candle GU sits right on major S&R. :smiley:

87

Thanks Cas

It makes more sense now.

It is more like the way I trade .

:slight_smile:

88

Be careful for 9:30 news.

89

What news are expecting, I cant find reference to it?

90

News almost got my stop but rode it for 40 pips!

91

That’s why I stayed out.

Monday is another day.:smiley:

92

for this morning

GU

good luck

93

8th candle and EU finally took off…:smiley:

94

[B]d-pip[/B]

Love it! :smiley: Oil is a rich mans bet 8 pip spread plus X5 the $'s. Can’t afford to be wrong or pop goes your account.

I will be posting [B]MY[/B] advanced trendline strategy over the weekend on a new thread just to prove I know something of trendlines. :D:D Last trade made me 174 pips on GU. Title will be [B]‘Swing trading using trendlines and SSD[/B]’.

95

[B]R Carter[/B]

It’s either rich or bust. :smiley: No other way about it. :smiley:

96

Can`t wait to read it!. I’ve been looking to incorporate trendlines to my trading. It’s awesome how they work. I want to learn it from someone who knows how to use them! :slight_smile:

97

8 pip spread plus X5 the $'s ? is that 8 pip spread and 5 pips GBP to USD or 5 pip commission?

I’m looking forward to [B]“YOUR”[/B] :slight_smile: [B]advanced trendline strategy[/B], sounds good. 174 on GU nice! I like this London breakout strategy, this morning I snagged 43 pips on the breakout. Then kept jumping in and out for a handfull here and there, but didn’t have the guts or confidence to ride it all the way. I chicken out and bail on the retraces.

thanks!

98

[B]d-pip[/B]

8 pip spread. $10 trade is normally around $1 a pip on most currency crosses. But on oil its $5 a pip plus $1000 margin requirement. Not recommended for all but the brave! :stuck_out_tongue:

99

I think you have to take first candle at the line… My chart looks like this

100

More of my thoughts on “to use or not to use” the 09:00 to 09:59 local london candle…

…MAYBE yes MAYBE no…

This morning the GBP 09:00 local london candle opened with a small swing low. Then retraced back up for 5 - 10 minutes. Next the price changed direction heading back down and broke through the earlier swing low making for a nice breakout trade, around 1.5980

(Sorry, this is not a very clear explanation. Please take the time to look at a 5m or 15m chart you’ll see what I’m trying to describe.)

Also if you spin back and look at past days, you’ll see quite a few mornings with similar price action. Maybe this is why the original strategy mentions the 09:00 to 09:59 local london candle

So maybe if there hasn’t been a breakout by 09:00 local london we should try using the beginning of the 09:00 candle…

Maxximuz… see how what I’m suggesting would have had you into the trade earlier around 1.5980. I hope you didn’t get screwed on the retrace…

2009-10-09_151843.jpg700×472 66 KB

101

d-pip

I did not enter at the break down of the trendline this round, as I already in a trade for GU with another strategy. But, if I don’t already have an open trade for GU, I would have enter at the 1st break down of the trend line and will be stop out when it retrace. And seeing it dive all the way down :rolleyes:

Thanks for sharing, I will try it out.

102

[B]d-pip[/B]

1.5987 was a valid entry point according to rules.

There is two ways looking @rules. You either enter at anytime of the 5 candles as long as you have valid SWH, SWL. Or you enter from 6th - 8th candle.

If you wait for 5 candles to determine valid SWH, SWL you’ll be late more often than not.

One day last week I entered 2nd candle because there was a valid SWL.

My take on this…enter as soon as you have a break of trendline determined by valid SWH, SWL…in those corresponding 5 candles and 3 candles afterwards.

In fact you can have more than one trade on a given day if volatility is high enough.

Any entry before 7AM GMT has a high chance of success because breakout tend to happen 7AM - 9AM GMT.

If you miss it there is always another day. :smiley: