I’ve diverted this mini discussion across here from the 3 ducks thread as I’m conscious of dragging that material off topic & spoiling it for those who wish to follow it in it’s original format. It’s also a good opportunity to thank the creators of this material & the posters who contribute regularly to this thread.
Following on from exchanges on another thread, DoubleEcho recommended I take a look in here as he thought the two might offer complimentary advantages & so far he’s not wrong.
I’ve already discovered an entry technique from Carll that I’ve actually used for the first time yesterday on my demo testing account, that I’m certain will offer added zip to my own interpretation of these combined trading methods. I also like the way they’ve presented the use of the average daily range as an entry & trade management aid.
What I find most interesting & intriguing however is the accuracy & consistency of the key levels that are evidenced so regularly in their pre & post trade chart examples. Yesterday being a classic example on eur/usd as it encountered buying & selling at Thursday’s high & low prices almost pip perfectly.
Anyway, here’s the quoted comments from the last exchange on 3 ducks.
I didn’t demo trade the short you explained during the London morning trade session, but nodded in agreement as I read your post. I did however take the short trade 90 minutes after the American jobs report when price clearly again failed to break up through the high of Thursday & Friday’s London morning session.
Both the 5 & 15 minute charts were displaying extreme stochastic hooks, price was continuing to find resistance at the moving average on the hourly chart, which was still sloping strongly down, & the risk was very favourable to test out the week long bearish momentum. There were also no visible technical obstacles in the way of price slipping back towards the London morning low.
I’m assuming the acid test for more shorting action will be anywhere from current levels back to last Thursday & Friday’s highs again, as that area will have to break first in order to snap this recent bearish lower high outlook?