This shows my boxes of 60 pips above which I would place a buy and below a sell.
In this scenario I would most likely see no trades triggered and my if they did then the trades would not form within my trade time limit and probably result in a loss.
How did you arrive at 60 pips for the boxes? Is that for all pairs? Where are they drawn from? Are they subjective or from price points?
How does that, and the 1 hour chart, fit into Dennis strategy based on end of day S / W readings and daily entry points?
Good luck
I will have a look later on today for the thread number where I outlined the strategy that I use.
The boxes are illustrative and were to hand for placing on the daily chart at the candle mid point on the day chart.
In the examples shown I reduced them down to about 10 pips in order to fit on the chart in as many as I could as the 60 pip areas which would normally be just lines that I up date every day in a lot of cases sit outside the chart boundaries.
Off sailing now to blow out the cobwebs of the working week
Two weeks of AUDNZD as a Top Trade hitting a high of +202 pips on Wednesday, and I’ve seen nothing so far to suggest this run is over.
1 Like
This market is being dominated by the huge Daily pin bar reversal that occurred on January 3rd, All the Yen pairs show this and so do many of the non-Yen pairs. I would not be trading against that Pin Bar, but note this could reverse at some point and the drop will likely be far more dramatic than the slow grind higher. Some would call this a Bear Trap
1 Like
Hello Dennis,
According to sources quoted by Finance Magnates, there is a significant risk of another Yen Flash Crash sometime in the 10-day period from 27 April through 6 May.
I posted a link to the Finance Magnates article elsewhere in the forum. — Here’s a LINK.
3 Likes
On then 2nd &n 3rd March I posted how I use Dennis’s SW analysis along with a simple method of trading.
It uses a MA to confirm trend and a simple formula that can be put into excel to determine the mid point.
To answer your consolidation question which is nether significant increase or decrease from a sideways move.butbiam sure you already know that. Why trade a sideways market ? It is not profitable and needs deep analysis in order to determine a change. So my mantra is patience, wait for the SW to go above 2% for the pair and then look to see if your energies for taking the trade come to play.
1 Like
This is my Chart for todays SW pair. AUD/CHF SW 2.27.
I use MT4 and use the draw lines function in the lower ribbon on the left of the ribbon. I is click and drag and drop. You can manually adjust the lines to the correct values as per the excel spread sheet.
The 2 aqua lines show my 30 pips lines drawn above and below the mid price point of Fridays closing candle. The upper is where I place 2 buy limits and the lower 2 sell limits trade trade I do not think much is going to happen. The Stop loss is 30 pips and the take profit is trade 1 50 pips, trade 2 is 100 pips.
Move to break even when trade is at 45 pips then use a trail stop to take the 50 pip profit and move to the 100 pip profit.
Do not forget to delete the opposing trades when the first 2 trades have triggered.
Please note that in this incidence I have not taken any trades so no profit or loss signs are on the chart.
2 Likes
Thank you, you said you are mindful of the 200ma. Whats your view on the 200ma on that one? And also how many days does it take to hit your TP?
First may I apologise as I have illustrated on the wrong highest lowest pair but the principle is the same.
The 200 MA I only use to look at the extreme extent of the trend so is it a very long trend ? in the 1 hour TF and could it be exhausting ? If you wished to use a lower sma like 50 or 34 then you can.
I just like clean charts so that I can also observe the 1 hour price action when placing the upper and lower lines.
I look for Dennis’s SW analysis then the trend direction.
Below is how I do my calculations.
Below is the screen for AUD NZD
1 Like
1 Like
I tried to plot your figures when I plotted where the TP from buy level, it just gives 5 pips. And in your spreadsheet it is 50pips?
I created a spreadsheet similar to @K31thM3ll0r’s while I was thinking about his strategy. Feel free to use it.
Keith numbers.xls (8.5 KB)
We have a new sheriff in town, NZDUSD is breaking down, watch 0.6650 if we get a daily close below that level this could be a big one
4 Likes
JPY is poised to take over the #1 spot so it would be fitting for everyone to get sucked in on long side just to see the Yen dive back to #8, as I have said many times " best time to short Yen is when it is #1"
2 Likes
Nasdaq hit an all-time high today, SP500 is only pennies from doing the same and the lagging DOW could be there within a week. All this while USD and JPY are #1 & 2, whatever happen to Stocks Up - Dollar Down This is the upside down world the Federal Reserve has created, at some point this house of cards will come crashing down
1 Like
Very interested but I have a couple of Qs if I may?
-
If you’ve identified the SW then do you not just place the Stop order for the direction of the SW? ie AUD/USD right now is USD strong and AUD weak so we would only put in a SELL order? Why put in a BUY order?
-
Regarding orders, why do you use 2 orders per SELL and BUY? Why not just put in one order each at double the amount and TP half of your position at 50 pips and then finish the rest at 100 pips?
LAZ
2 Likes
(1) It catches a trade in the opposite direction should there be a pullback. Many currency pairs can go over 150 pips a day when volatile.
(2) I do it this way because I work so that I am not sat in front of the charts. So if trade hits the 50 TP then retraces I still have a profitable gain.
If you wish to do it different that’s up to you the result is the same .
2 Likes