AO filter examples

I don't trade the Asian session but applying system with AO filter. X = no trades tick = valid set ups.

Reading between the lines with either cross or ticks. From left to right would be:

- cross far left, higher low, 3 bar buy signal, above ma but AO blue so no buy. There was 1 gold candle and AO bar but no valid entry and then AO went blue again.
- tick far left, lower high, 3 bar sell signal, below ma, AO blue price trades below the set up candles (which have little/no lower wicks)
- tick middle, higher lows, 3 bar buy signal, above ma, AO gold price trades above set up candle (little upper wick)
- cross right, blue AO so no buys, price above ma so no sells with blue AO
- tick right, lower high, 3 bar sell signal, below ma, AO blue price trades below set up candle (little/no lower wick)

Hopefully this gives clear picture.

GBPUSD GBPJPY 23 Feb '17

I have shrunk the charts this morning just to give a clearer picture of support. I have also added the awesome oscillator and shown for first time (been researching a little while) more on that later.

GU this morning had some support in the Asian session at M2 1.2430 area and GJ also at M2. Clearly seen from the charts. GU has a 3 bar reversal buy at the Frankie half hour reversal time, with a 5 min higher low off the M2 Asian lows. Just after that GJ rejects its M2 but no 3 bar reversal candle (wasn't above Stoch 9 9 1 50 level).

I have been looking at AO as a filter and not buying when AO blue and not selling when AO gold. Does this cause some trades to be missed - yes of course. Does it avoid some losing trades - yes of course. This morning the GU higher low around 1.2472 and GJ around 141.18, AO turned blue for both so no continuation trades were considered.

The red line on GJ 1 min shows the first higher low entry after GU 5 min set up (higher low, 3 bar reversal buy signal), GJ agreeing with move up on 5 min, AO both gold.

GBPJPY 22 Feb '17

Just after London open (green line) GJ 5 min 3 bar reversal signaled buy (GU agreed chart not shown). So on the 5 min charts there was a valid buy set up.

I have often talked about moving average angle and separation. Here the 1 min chart red arrow up shows the next higher low/double bottom after the 5 min signal. The moving averages are not stacked correctly for a buy (10 below 100) and the 100 is still angled down.

When the 5 min 3 bar reversal signals sell (again 5 min GU agreed) the 1 min chart has a more typical look to it, see the red arrows down. Moving averages stacked correctly and nice angle/separation.

GBPUSD GBPJPY 10 Feb '17

I was not in front of the computer this morning.

GBPJPY late Asian session lows around 142.10 were tested just before London open and the 5 min chart has several hammers, then showing the break of this range down to 142.00 was rejected. London open (green line) gave a 5 min close on 142.00. This is reflected on the 1 min with a lower high swing with a top around 142.10. The break below 142.00 gave a small retrace higher and another lower high. See the 1 min chart 2 red arrows down after London open.

GU, GJ 5 min agreeing, lower highs, price below moving averages and last 3 bar reversal signals were down. 1 min lower highs, small retraces, entry candles are the negative closes with little/no lower wicks and price going 1 pip lower on next open candle. See 1 min red arrows down.

GBPUSD GBPJPY 6 Feb '17

I have a friend sitting with me most mornings and I am trying to get him to trust the higher low/lower highs after the London open green line. Most are signaled by the white arrow 3 bar reversal indicator.

This morning both GU and GJ signaled down just after LO and then 11.15 chart time signaled up.

GBPUSD GBPJPY 03 Feb '17

GBPUSD and GBPJPY both signaled buys (white arrows = 3 bar reversals) just after London open (green line). GBPUSD signaled a buy again at 11.05 chart time but GJ did not confirm so no trade.

GU and GJ then signaled 11.10 and 11.15 chart time before moving lower.

As usual I am looking to trade in direction of the 5 min 3 bar reversal buy above/sell below moving averages, timing entry from 1 min.