Merchant prince
I’m in that same trade (entered at 1.6242) been bouncing around a bit hasnt it! Its 17:35 here so as much as it pains me to do so. I’ll close out at 32 pips. Sure I’ve got a home to go to somewhere. Catch up with you later tonight. 
Indeed I did get about 50 pips today (not the breakout), but had lost about 30 during the night (Eastern Daylight Time) so up about 20 overall for the day. I still fee like I have a lot to learn and lots of experience that needs to be gained but I’ve got a good teacher!
I’m getting ready for a long weekend vacation, so won’t be trading till I get back on Tuesday. Good luck everyone!
Originally Posted by [B]Clint[/B]
[I]Well, that sucks.[/I][I]I think every SL up to, and including, 50 pips just got hit.[/I]
[I]This morning was just like most of last week — crappy.[/I]
[I]I’ll talk to you guys later.[/I]
OTOH, using the range-defined stop worked excellently in the lower end of the trade. Look at the low of the last overnight period, and then at the low after that. They are practically the same. My stop was within 4 pips from that, and it was never taken. Later in the day, I was able to move the stop above BE, at the distance of 20 pips of the price at the time of that operation, and it was then hit. Well, if I had just stayed in the trade, my initial TP at +65 pips would have been finally taken. I need to watch, which is better, move the SL above BE or just let the trade work itself out. +7 pips for today’s trade, better anyway than a huge loss.
Yeah, I just got another Buy trigger couple candles back and it just closed out for a 30-pip win!
I’m also riding EUR/USD long right now after it broke out of it’s sideways movement and am currently up another 40 pips!
So, the bottom line is that all this good news does is merely dig me out of last night’s 48 pip slaughter. LOL
Yes, I think I am right in saying that most of our best traders on this forum are on this thread.
It appears to be a great place for research to improve a strategy.
Everyone seems to be busy plugging at it!! 
Having said that, maybe the above comment by R Carter is the next step in getting this strategy to work better.
‘set the alarm clock and forget’
Even though I don’t trade this one (I do read the thread, however ), my time zone of Perth allows me to trade this one in the middle of the day!!
Tymen1 I notice there is more than one thread on the joy of candle stick trading and to get a well rounded education I’d like to learn more so which thread is best to go through? isn’t there a part 1 and part2 I think? That’s a lot of reading, can I skip one or the other? I got the PDF but that seems like a brief overview and I want more depth.
I like the alarm clock idea, I have seriously considered it. Actuall I have sort of a built in one, woke up at 3am this morning but made the wrong decision due to being half asleep so maybe it’s not such a good idea after all. 
TALOND
I’m miffed… drink lots of coffee.
Its another strategy altoether (candlestick trading) but if price breaks the 15m chart on a 2 std dev bollinger (20 period) and wicks. Wait till the candles change colour and trade the opposite way. Its always good for at least 10 pips. If your brave trade it to the centre line of the bollinger.
I have my coffee in the morning and lately since staying up so late I have it in the afternoon too so I don’t fall asleep at work.
I was thinking that learning some candle patterns might help judge turning points in our other strategy? as well as helping out on that bollinger idea. In fact that bollinger idea may be something we could all try in addition to the breakout. I have noticed that price will often hit the upper bollinger during our quiet range and then head down to the lower. It happens frequently and I’ve made some pips that way while waiting for the breakout.
good luck again everyone and have a good weekend. I have to go load up the truck for my trip.
SanMiguel,
A month ago, on Thursday morning, August 6 (the day before the release of the U.S. Non-Farm Payroll Report), the pending
BoE interest rate announcement aborted the London breakout, and held the market hostage until 11:00 GMT.
The reaction to the rate announcement is shown in the chart, below.
But, this month is different. Tomorrow (again, the day before NFP), we don’t have anything nearly that dramatic coming out.
12 midnight EDT is not hear yet but probably better to go with the earlier 12:45pm high of 1.6299 vs 2 pm to 12 midnight range high of 1.6291 - unless it gets surpassed in the next 45 minutes.
Notes on the London Breakout Strategy for Thursday morning:
The Wednesday Night set-up looks orderly, with a very narrow 55-pip range. But, there is strong resistance just above the box, and a cluster of support levels just below the box.
So, this morning I’m going to give those S/R levels extra room. I will place my Buy order 9 pips above the 1.6300 resistance, and I will place my Sell order 6 pips below the 1.6224 support.
This puts my orders way outside the box. But, I’m happy there. Lately, I’ve seen the price move just past one of our entry orders, and then reverse and head for our stops. The last time that happened was less than 24 hours ago, and almost all of us got stopped out then. I’m getting a little paranoid. It looks like stop-hunting to me.
There must be thousands of traders around the world who straddle the relatively narrow Asian-session price range, looking for a breakout when Europe opens. Most likely they don’t trade exactly the same way we do, but their Buy and Sell orders are probably clustered close to where we place our orders. That makes our orders targets for the stop-hunters, along with theirs. I can’t prove any of this, of course. But, even paranoid people can have real enemies!
Resistance and Support levels:
R – 1.6381 – August 28 high – VERY STRONG
R – 1.6375 – September 1 high
R – 1.6364 – August 28, 11:30 GMT candle high
R – 1.6344 – August 28, 16:00 GMT candle high
R – 1.6329 – August 31 high – STRONG
R – 1.6314 – August 28, candle high on multiple candles
R – 1.6299/1.6300 – September 2 high / century mark – VERY STRONG
H – 1.6290 – Period HIGH
L – 1.6235 – Period LOW
S – 1.6234/24 (note the 10-pip range) – August 31 congestion area 03:30 - 13:50 GMT
S – 1.6200 – century mark
S – 1.6186/82 August 26 and 27 multiple candle lows / August 31 low – STRONG
S – 1.6168 – August 27, 11:15 GMT candle low
S – 1.6152 – August 27 low – VERY STRONG
S – 1.6113/11 – September 1 and 2 lows – VERY STRONG
Scheduled News Releases (deemed high-impact for the GBP or USD):
Out of Britain: Services Purchasing Managers’ Index at 08:30 GMT
Out of the U.S: Unemployment Claims at 12:30 GMT
and Institute of Supply Management Non-Manufacturing Purchasing Managers’ Index at 14:00 GMT
I don’t expect news to be a factor this morning.
Entry Orders:
In addition to placing my orders well outside the box this morning, I’m using a larger TP than usual (30 pips, instead of 20).
I’ve been using an upside-down R:R ratio, since I first started using this strategy, and I’d like to change that.
BUY 1.6309, SL(30), TP(30)
SELL 1.6218, SL(30), TP(30)
On the chart below, I have shown my Buy and Sell orders, but not my stops and limits. I don’t think that will cause any confusion.
We’re due for a win! I hope it comes this morning!
Clint
I wouldn’t be so paranoid if everybody wasn’t out to get me
I can see we’re all jumpy after last night (and all last week, for that matter!). I’m staying up till 2 am before setting my orders, to try and guard against the “fakeout breakout” and Clint is setting his entries near outer Mongolia.
And here we are with no breakout yet with one candle to go before 2 am. But I agree with pushing our entries even farther outside the range, if for no other reason than that we haven’t tried it yet.
I was out there near China with Clint even farther 1.6315.
Made profit tonight.Did you notice the pattern on the 1 hr chart the last 5 days almost identical every other day making a jump at this time to over 1.6350 is this on a computer program are what?I agree on your comment Clint about stop hunting it becomes routine before Europe opens or just before London they are chasing triggers, hedge funds are bank traders i guess?I guess all we can do is find a strategy or money management to lessen the blow.In that regard iam staggering my entrys on demo to see if helps with the bumpy weeks.
Everybody have a great morning!!!
Another 45 pips this morning. However, the trade finished late and only spike up further on the news report, which is the only reason I left it open because the forecast for Services PMI was up so I guess this was more of a news trade.
Yeah I got the win, as well, even though I sweated a few of those candles from 03:15 to 04:00 am, thinking we were gonna get another heavy retracement. This strat shouldn’t be so high-stress! LOL
Got a 20 pip win last night with a sell at 2am, good stuff.
That was nice, I scored 50 pips with no sweating whatsoever. If I had moved SL to BE at 20 pips profit, I wouldn’t be saying this. Based on this week’s trades, I’m starting to think about scrapping that rule of mine (although the sample size is admittedly pretty small yet). So far this way of trading this system has suited me best. I think that the overnight range could grow even close to 100 pips, and it could still be tradeable, if the pattern just looks good. It’s just a question of scaling your position size appropriately.
Before using the range to define SL and TP, I also considered a moment to start using the 10-50 method, but that 10-pip stop loss felt so tight, despite those good backtesting results. So far I haven’t seen a single live day that would have been profitable with 10-50.
Today 10-50 was profitable. If you place you entry above the high 19 pm - 05 am London time, then sl wouldn’t be triggered. It was a high at 17 h candle(1.6299) - two ours before begening of non trading time, and I place my order above thath high and my sl was hited.
My conclusion: do it like robot does and will be profitable:).
I found the same thing and it seems moving the stop to breakeven actually brings you less profit in the long run. Strange isn’t it
I’m using 20/50 at the moment - what are you testing out, using the box range as the stop loss? Could be interesting, there must be a sweet spot in between somewhere.