Technical Templates

[West]

'' Hawkmoon wrote: there are a few pairs still displaying strong directional bias out there at the moment & among them is AUD/USD.
this pair is one of a few i am focusing on & there are two close S&R zones that i am looking to take more entery's from.

Hi Hawkmoon

It's good to know I had the exact same levels marked out on my charts and I'm sure many others following this strategy did as well. I took the 1 hour hook entry at the first support zone yesterday at London open. Unfortunately I was stopped out at breakeven during today's early Asian session. I would be interested to know at what level you entered this trade (if you did). I entered on the break of that 5 min 1-2-3 after the 1 hour hook ( black line on 5 min chart) with first target 1.06.






Another question for anyone utilizing these 1 hour hooks, often they will occur during early Asian trade such as on the 2 August. What do you guys think about taking higher low 5 min hooks or momentum breaks as entries higher up after price has reached and moved away from the zone (see chart below). I realize Ideal entry would be closer to the support zone but often if the ADR left/next resistance zone is sufficient the risk to reward is often appealing and these 5 min hooks would appear to be in line with Carll's original 5 min hook strategy.





Thanks
West

[Se7en]

Another question for anyone utilizing these 1 hour hooks, often they will occur during early Asian trade.

What do you guys think about taking higher low 5 min hooks or momentum breaks as entries higher up after price has reached and moved away from the zone (see chart below).

I realize Ideal entry would be closer to the support zone but often if the ADR left/next resistance zone is sufficient the risk to reward is often appealing and these 5 min hooks would appear to be in line with Carll's original 5 min hook strategy.

I use the hook entry a lot west, especially during the first few hours of london/european trading.
If there's sufficient ADR remaining to justify the risk & price isn't in the immediate vicinity of an obvious support or resistance zone, then it's a valid trigger.

I use the 5, 15 & 60 minute hook entry wherever & whenever appropriate on a very regular basis when it lines up with pullbacks in the direction of the primary trend.
Not only is it a very logical price action trigger but also one which usually affords excellent risk potential.

ps: I also took an aussie long yesterday morning (1.0544 off a 5min hook @07.53am), my second of the week, & this one (like yours) also resulted in a break-even exit.
I moved my stop up after the next higher high break & it got me as it slid back around the London lunchtime period....sometimes we get away with the ebb & flow & sometimes we have to take our medicine.
Onto the next one

[Carll]

What do you guys think about taking higher low 5 min hooks or momentum breaks as entries higher up after price has reached and moved away from the zone (see chart below). I realize Ideal entry would be closer to the support zone but often if the ADR left/next resistance zone is sufficient the risk to reward is often appealing and these 5 min hooks would appear to be in line with Carll's original 5 min hook strategy.

Risk attitude & trading objectives will be the primary influences when adopting the hook alongside the various timeframe preferences west.

The beauty of this filter is its total flexibility. It can be plotted & utilized right across the board from 5 up to 240 minutes.
The common denominator however is to only bring it into play on & around pullbacks within clearly identified bias/trends that meets your individual criteria for whichever technical model you’re adopting.

For instance, if your preference is exclusively primed more towards intraday bets then you might use a 1 hour and 5 or 15min combination.
Or you might limit it to only 15 or 5 min.

Slightly longer term objectives might bring the 1 hour into play, the 4 hour or a combination thereof.
It really will depend on each individuals set up preferences, risk, objectives & experience.

It’s a multi-style filter for all tastes & appetites.
The idea is to find a style that suits & then wrap the set up/trigger around that style preference. You can then begin to filter out & focus on particular currencies or pairs and/or particualar times of the business day etc.

I fully concur with yours & se7en's comments relating to available ADR & s&r headroom when considering entries.

[jjay]

Hi Hawkmoon

It's good to know I had the exact same levels marked out on my charts and I'm sure many others following this strategy did as well. I took the 1 hour hook entry at the first support zone yesterday at London open. Unfortunately I was stopped out at breakeven during today's early Asian session. I would be interested to know at what level you entered this trade (if you did).

West,
According to SeanP he logged out of the system yesterday lunchtime (london) & won't be back in the loop until next Thursday.

The spot aud/usd long was an account bet for one of Jocelyn's guys & he triggered it at market for a 1.0552 entry/1.0525 stop, looking for 1.0670 (the twin 8&9 March highs) & the years highs up at 1.0800.
One of the guys is managing it for him in his absence.

The only other open spot bet on his blotter is a usd/cad short triggered tuesday morning, which I understand was flagged up as a prompter (along with the aussie) by catcher over on the TT Babypips thread last Sunday.

[West]

Thanks Se7en, Carll & jjay for the comments. Cad is definitely showing relative out-performance and has also been on my radar this week. I see EURCAD has resumed its medium term downtrend and has taken out last weeks lows. I'll be keeping an eye on this pair as well next week for suitable pullbacks.

Cheers
West

[midgely88]

The only other open spot bet on his blotter is a usd/cad short triggered tuesday morning, which I understand was flagged up as a prompter (along with the aussie) by catcher over on the TT Babypips thread last Sunday.

would that short entry be heavily influenced by prices breaking down through the previous weeks low jjay?
I know you guys mention those levels a lot when analyzing & preparing your trades.

euraud moved back into short mode & bounced off last weeks lows yesterday at the 1.1610 area but I've left it alone today with it being so close to the weekend.
I'll certainly be watching it closely into early next week & will use a similar tactic as West will be using on his eurcad entry.
I'm really finding it helpful using these prior day, week & month high-low levels as guide markers.

[jjay]

would that short entry be heavily influenced by prices breaking down through the previous weeks low jjay?
I know you guys mention those levels a lot when analyzing & preparing your trades.

It would midgely yes.
Practice what you preach. No use drilling it home so consistently & then ignoring the obvious whenever it sets up & plays out.

Also the fact it failed to break back up into & through that established s&r zone at 1.0020-50, printing a lower high under Monday's highs added weight to his decision.
The bias was/is strongly short so it wasn't a particularly difficult decision betting that pair.

[West]

midgely88 wrote:would that short entry be heavily influenced by prices breaking down through the previous weeks low jjay?
I know you guys mention those levels a lot when analyzing & preparing your trades.

jjay wrote: It would midgely yes.
Practice what you preach. No use drilling it home so consistently & then ignoring the obvious whenever it sets up & plays out.

When using the pre-week highs and lows to trigger, how would this normally be played? Is it a blind break similar to the charts attached perhaps, or are you waiting for the lows to be broken first? I'm assuming major target would be the April lows in USDCAD.

[jjay]

There really isn't a normal way to play it as such west. Each person will make their final (entry & risk) decision based on the particular circumstances, their risk attitude & their view of the technical background, which is why there is often differing outcomes & results when folks execute on & around the same level or zone.

Hawkmoon chose the first break of the lows, other times he'll (& others will) play a pullback with or without a hook. To be honest those are the only two likely options in those repetitive scenarios.

But the common denominator is always the most important factor, & those 3 are:
a clearly identified dominant bias
high probability/lower risk opportunity &
a logical technical reason for executing the bet.

His stop on that entry was back above tuesdays tokyo highs at 1.0015 & yes you're correct, he's eyeing those April lows, which is the next obvious destination for shorts.
That offers him 4:1 odds on that bet.

[hawkmoon]

from the charts posted 10 days ago i mentioned that these 2 upper s&r zones at 1.0520-50 & the more prominant zone at 1.0430-70 were important areas to hold if higher prices were to be seen in aud/usd.
Price has been rotating between the 2 zones since that post on August 8 & momentum is now beginning to pick up on the short side.
This area will now act as a resistor & a "sell rallies" pullback trigger if bids fail to hold & consolidate into next week.


Dropping down into the smaller timeframes offer a clearer view of this previous support area which now hold the clues to the next short term direction on this pair.
I will certainly be seeking to short aussie underneath the 2 highlighted zones, where offers will now likely be building on unsuccessful attempts to break back up off current levels.