Trading ideas and days review.

Whilst we no longer really trade Frankfurt, the hour (FH) before London opens (LO) we have looked at numerous charts. Generally we would not trade 2 moves in the same direction as half way through FH there is a strong chance of a reversal.

We will look at trading higher lows and lower highs (1 2 3 tops/bottoms) and double tops/bottoms at this time (FH/LO).

After 9.30 gmt you are more likely to get the bigger moves of the day forming. So trades in line with 1hr at close of 9am gmt candle can be considered. If the move is small then the LO head fake has not yet shown itself. A reversal then will most likely signal the bigger move for the day. Chances of London having 2 big reversal trades are slim.

Chances are that this move will continue to 5 day ATR and then may have a London Close trade reversal.

LO head fake Fri 12 Aug

Perhaps a difficult head fake to figure out. The eur 1hr hammer certainly gave a trade which gu didn't (large body neg close but decent wick reject of Asian lows).

LO head fake Thur 11 Aug

Again the move up into LO was a fake. London open session did very little again. The eur in particular gave better trades. If you were looking to sell the eur doji's at the highs were better sell candles than the gu positive close inside bar.

LO head fake Wed 10 Aug.

There were several losing trades today.

GU move into LO was a fake up move, today eur did have successful hl trades until the Asian highs were hit and the big moves were lower. Any losing trades in morning session were again more than made up.

LO head fake Tues 9 Aug.

Today the eur was sideways, perhaps due to the FOMC decision due that evening. GU again did very little in the morning needing the US session to come in for direction. The move up into LO was again a fake though.

London open head fake Mon 12 Aug

I have put on a couple of lines that show 8 am and 9 am gmt. Also a couple of obvious support and resistance lines from the Asian session.

Today for both currencies the move up at LO is the head fake that shows the trend of the day. I have some of the clear lower highs. GU did have a couple of losing trades but would have been a comfortable winner on the day still.

Just one comment on eur, the x trade. This is a type of 2b trade that I have seen frequently, a counter trend move before the US open that fails and moves back into the trend of the day. I am very careful taking counter trend moves before the US open and want decent 1hr set up candles and not a 15 min reversal candle.

London Open head fake

I have long thought that if you can get the London open head fake right then you'll have a good chance of trading successfully. You have a chance of getting the direction of the day correct. That of course doesn't guarantee success, if you are using small stops you still have to get your entry correct.

I'll post a few charts from this week for eur and gu. They might have a few things in common such as a move around London open that reverses.