London Breakout 1

[nutrader]

This strategy produced 2 longs and 2 shorts today.

Every triangle in a candle on attached chart was a valid entry according to rules.

The total profit was[B] 210 pips[/B] from this strategy. Today…!

If you traded the EU as well with this strategy you made another [B]100 pips[/B]. Today…!

How can a simple strategy as the one in this thread who is obviously a pip machine can be made so “difficult” because of interpretation…?

I guess it all comes down to where you draw your lines, I drew my lower trend line as per yours triggering the short but my upper line was drawn from 9th oct 12 oclock (BST) candle connecting to this mornings 6 am candle giving me no long entry today, I wouldnt of had the confidence to trade off such a recent SWH

Sorry i havent yet figured how to post my charts here which would explain clearer

Well done if you succesfully took all 4 trades, but i am a little confused or maybe i have missed something here, i thought we were trading the breakouts, even with your trend lines drawn as you did there were only 2 breakouts, i would be grateful if you could explain your 4 entries. I look forward to reading your reply but it is now bed time for me here so will check again tomorrow

[wrtm_19]

This strategy produced 2 longs and 2 shorts today.

Every triangle in a candle on attached chart was a valid entry according to rules.

The total profit was[B] 210 pips[/B] from this strategy. Today…!

If you traded the EU as well with this strategy you made another [B]100 pips[/B]. Today…!

How can a simple strategy as the one in this thread who is obviously a pip machine can be made so “difficult” because of interpretation…?

Lookin at your chart that all makes more sense to me. That’s great from you to show your charts.

I trade another strategy during London that gives me time to look for another options, so I don’t want to lose the opportunity to bank all those pips you mentioned.

[TalonD]

This strategy produced 2 longs and 2 shorts today.

Every triangle in a candle on attached chart was a valid entry according to rules.

Cas, why did you connect your top trend line to the top of the 4am gmt candle. And why did you connect your bottom trend line to the bottom of the 6am gmt candle ?

[Clint]

Cas, why did you connect your top trend line to the top of the 4am gmt candle. And why did you connect your bottom trend line to the bottom of the 6am gmt candle ?

My question, as well. Those lines do not conform to the rules.

Here are the rules, copied from[B] Revy[/B] (I have placed one sentence in bold):

Our working range includes 5 candles: from midnight to 4:00 am EST (including the 4:00 am candle).
Optional: draw a midnight vertical line for visual aid.

[B]Within those 5 candles look for a valid swing high and a swing low of the price.[/B]

Draw an Downtrend trendline connecting a found swing High to the most recent swing High of the previous days. (Make sure the last one is valid High to draw an Downtrend trendline through it).

Do the same for the swing Low: connect it to the most recent swing low of the previous days, make sure you are pulling the right trend line using the rules of drawing Uptrend trendlines this time.

If a trader sees, for example, no Swings High in the 5-candle range, that means there will be no downtrend trendlines this morning.

The sentence in bold is the rule that Cas didn’t follow. The end-points of both trendlines on Cas’ chart are on candles which are NOT swing high or swing low within the 5-candle range.

Clint

[TalonD]

obviously that’s a good move on Cas’s part but I’d like to know the reasoning behind it or is it like what I was doing on the other London breakout strat where I was visually picking out the best looking last few candles?

[Clint]

@TalonD

obviously that’s a good move on Cas’s part but I’d like to know the reasoning behind it or is it like what I was doing on the other London breakout strat where I was visually picking out the best looking last few candles?

Using Cas’ chart and “triangles”, here are the lines defined by the rules, in red:

Obviously, the line connecting the swing highs is not a downtrend line; so, there was no trade to the upside according to
this strategy.

And the line connecting the swing lows is not an uptrend line; so, there was no trade to the downside, either.

[d-pip]

I don’t know if I understand your question correctly but the close of the 05:00 local London / 04:00 GMT candle was the swing high… only to be taken out a few minutes later around 06:05 local London / 05:05GMT

Take a look at the 1m and watch the price action, the high was set as the 05:00 local London / 04:00 GMT candle closed. The price retraced down a few pips, then a few minutes later broke through the trend line set by the swing high of the 05:00 local London / 04:00 GMT candle.

I’m still half a sleep so I hope this explanation makes sense??? I’ve got to turn on the coffeepot… need coffee real bad!

[TalonD]

so you’re saying those trend lines were determined before the 5hour period was over, while it was still in progress, but then the high changed after that. That worked but its still not the original strategy I don’t think, is it?

[d-pip]

so you’re saying those trend lines were determined before the 5hour period was over, while it was still in progress, but then the high changed after that. That worked but its still not the original strategy I don’t think, is it?

There is a slight discrepancy between the R Carter version and the Ed Revy version.

R Carter version reads: [B]With[/B] those 5 candles look for valid swing high and swing low of the price.

Ed Revy version reads: [B]Within[/B] those 5 candles look for valid swing high and swing low of the price.

[I]Maybe proving in fact that RC didn’t pick pocket Ed in McD’s [/I]

[TalonD]

so look for the ‘first’ swing high or low withing those five candles and use that, even if it later becomes not the high or low. maybe worth a try. only with that you have watch the chart the whole five hours instead of waiting till the end of that period.

[Clint]

This is completely off-topic, but…

I’m looking to trade a breakout of this pennant formation this morning:

[TalonD]

Clint, that long red candle three to the left of your midnight line. Isn’t that 1am gmt? anyway, I made about 20 pips on that one. Been watching that pennant or triangle as I called it. That’s why I was hesitant to trade today waiting on that.

[d-pip]

This is completely off-topic, but…

I’m looking to trade a breakout of this pennant formation this morning:

I’ll be curious to see if it doesn’t first break the lower pennant line for a stop hunt under yesterday’s low. Then turn and head up and go all the way through the upper line of the pennant?

[Clint]

Clint, that long red candle three to the left of your midnight line. Isn’t that 1am gmt? anyway, I made about 20 pips on that one. Been watching that pennant or triangle as I called it. That’s why I was hesitant to trade today waiting on that.

Correct. That candle is 1:00am-1:59am GMT.

And you’re correct to call it a triangle — it really doesn’t have the proper “stick” to be a pennant.

Anyway, I’m gonna trade it, whatever it’s called.

I’ll be curious to see if it doesn’t first break the lower pennant line for a stop hunt under yesterday’s low. Then turn and head up and go all the way through the upper line of the pennant?

Could happen. Right now, yesterday’s low is 40 pips below the lower pennant line, which is enough to work with.

I’m looking for 40TP with 20SL on this trade.

[ellave]

down she goes

[system]

[B]TalonD[/B]

so you’re saying those trend lines were determined before the 5hour period was over, while it was still in progress, but then the high changed after that.

That’s correct.

And yes I am watchin’ the corresponding candles forming in this 5 hour period.

That worked but its still not the original strategy I don’t think, is it?

Strictly speaking it is [B][U]not[/U][/B] the original strategy. But it is still the original strategy.

PS: As I posted in the thread “Bollonger Bands with MA’s” that it can be misleading posting charts [U]after[/U] trades.

[B]d-pip[/B]

You are correct. [U]With[/U] or [U]within[/U] those 5 candles ist he crunch of the matter so to speak.

[fayizal]

My GU chart of the day… Still waiting on EU…

[ellave]

i have something like this, anyone got similar?

[fayizal]

Looks like EU finally hit the target.

[TalonD]

I have an indicator that puts vertical lines at certain times. Might be useful. So here it is. I modified it slightly from the original so it puts a vertical yellow dotted lines at the beginning and end of the 5 hour period and a red dotted line 3 hours later. Just for visual reference. You can change the hours in it’s settings. The text description in the settings may be a little misleading but I left it as is. didn’t want to dig far enough into the code to change that.
For those of you using metatrader. put it in the indicators folder

lLBO1.zip (8.18 KB)