Continuing the focus on London open trades 2

OK the previous post gave some of the trade rules. To look at a chart with some explanations.

We had:

- the eur falling across many pairs so the eur was genuinely weak. 
- a failed move higher and clean AB move lower.
- the test or break and test of a range around London open see the red line.
- small retrace to set up the lower high (abc, 123 pattern)

So in summary a failed move in and around London open in one direction usually means a move in the other (followed by a higher low for a buy or lower high for a sell) has a high chance of success. Getting the direction of the day right with pairs with high ADR's will on most days give positive results.

Continuing the focus on London open trades

The focus remains on:

- trading where currencies are agreeing across 2 or more pairs. It could be both the eur and gbp against either aud, jpy, nzd or cad. Or it could be eur or gbp strong/weak across multiple pairs. See some of the 5 min charts posted earlier this month that clearly show the idea, that is to be trading a currency that has genuine strength or weakness.
- higher lows or lower highs (abc or 123 patterns) for entry.
- the test or break and test of a range around London open.
- a failed move in and around London open in one direction usually means a move in the other (followed by a higher low for a buy or lower high for a sell) has a high chance of success. Getting the direction of the day right with the above pairs with high ADR's will on most days give positive results.
- Trading buy above, sell below the 1 min 100 lwma looking generally for failed moves in and around London open, clean AB moves in the opposite direction that either test the range or break and retest the range. The BC retraces are small to set up clean higher lows/lower highs.
- Thereafter continuing to take higher lows/lower highs with strongly moving pairs.

This is a continuation trade from yesterday. EUR was weak across the board, clean lower high entry at break of the low 1.5066, exit +48.

4hr charts W pivots

As usual the 4hr charts show the importance of the W pivots, support and resistance areas and the number of significant moves that can be expected in a week (typically 2-5).

Trade of the Week

EURAUD price comes down to the Nov '13 low, a proven major turning point. Does not to move lower for hours. Divergence on 4hr chart. At the W M2 pivot.

Our counter trend rules in place. Entry from higher low on lower time frame. Exit +329.

London open set ups

Different day same simple ideas:

- Failed move in one direction in and around London open usually gives a move in the opposite direction a high chance of success
- A test, or break and test of the range
- Agreement between pairs, here gbp was strong across the board.

This morning moves lower failed, most pairs moved up and gave agreement that is trading above their 100lwma's and made higher lows.

London open set ups

Some of the simple ideas we use that occur regularly:

- Failed move in one direction in and around London open usually gives a move in the opposite direction a high chance of success
- A test, or break and test of the range
- Agreement between pairs, here gbp and eur were strong across the board.

This morning moves lower failed, most pairs moved up and gave agreement that is trading above their 100lwma's, made higher lows.

4hr charts and W pivots

As usual the 4hr charts show the importance of support resistance levels, W pivots and the number of significant moves that can be expected per week (typically 2-5).