Technical Templates

[Joe Whitehorse]

Hey guys!
Some nice trades being executed on here recently. Great use of the momentum triggers

Goldtop, I can definitely vouch for the professionalism & integrity of Interactive Brokers. You could do a lot worse than to use them for your trading needs!

whipcrack, another well analyzed & executed trade this morning. EURUSD also sat up nicely into the early Frankfurt/London volumes based around that trigger/set-up combination!!

[whipcrack]

whipcrack, another well analyzed & executed trade this morning. EURUSD also sat up nicely into the early Frankfurt/London volumes based around that trigger/set-up combination!!

Hi Joe.

Yes it did indeed.
I considered splitting my stake between the 2 as they both presented very good upside potential via their respective average days range potential, but went for an exclusive bet on eur/jpy instead.

eur/usd presented a similar opportunity at 1.3890 allowing a 20 pip (1.5%) stop back at 1.3870, below the higher low swing step.

Price did pop back to test the 3875 zone briefly before continuing the upside momentum into the early London volumes, so would still be a live trade.

It’s a great little entry trigger with this type of strategy.
Once you get the flows right, it allows for a neat stop placement that ties in nicely with the price action to make it a viable risk play.

It nearly always offers up a typical 15-25 pip stop on these smaller timeframes, which allows for a decent bet size when matched up with a 1.5 or 2% capital risk outlay.

The other great thing about it is the fact you got the choice (if circumstances dictate) to drag the stops to breakeven pretty quickly after price begins to step away, thus completely neutralizing the risk.

Here’s the eur/usd screen capture I took earlier (highlighting the similar set-up trigger) before deciding to place the eur/jpy trade.

[jack mason]

Hi guys,

I'm one of the silent (lurkers) majority who have been watching this thread develop since last October.
The information & live trade examples on here are both fascinating & very helpful.

It's rare that you witness trades being posted on bulletin boards as close to a live occurance as are regularly witnessed on here. When I see that, it not only confirms the confidence in the strategy, but also the fact that the strategy is based on & around firm foundations.

I'm a big fan of basic, simplified price action based strategies & this one definitely ranks up there with the better ones!
I particularly like the fact it's controlled with a low risk, potentially high return balance triggering off low timeframe entries, which is not too common judging by the offerings around the trading forum world.

Today's entry on the Euro/Yen being a classic example of that type of entry/risk bias.
I look forward to seeing this thread continue to develop & hope to contribute too as time & opportunities permit

[whipcrack]

Hey jack!

Glad you’re enjoying the posts & look forward to seeing some of your own contributions.

I personally think it’s more beneficial for me to post trades as they develop right from the off (whether they succeed or not) & thru to it’s completion as it records my psychological tolerance to the ensuing price action, as well as the trades progress.

That way, I can receive feedback from Joe & the other thread contributors & everyone can see how & why I entered where I did, why I managed a specific trade in a particular way & where & why I exited the position.

This strategy model really suits my outlook, risk profile & psychological tolerance, & that’s really important in my book, especially if a trader is seeking to grow & develop.

Anyway, here’s an update to this mornings trade:
I’ve allowed price a little breathing room today, as it backed away from the 60-65% of it’s ADR. The U.S data hasn’t really affected this pairs activity & I’m still looking for it to break up thru the mornings highs.

If it doesn’t, then I’m not prepared to dump the little amount of profit it’s generated so far, therefore have locked 20 pips in at 125.50. As an intraday position, It’s had enough time to make it’s mind up, & if it washes out we can sit back & wait for other opportunities to reveal themselves as the week opens out.

[whipcrack]

Ideal entry at 125.30 allowing a stop-loss below the 5-minute step at 125.15, aiming initially for the pairs average days range up at approx 126.30.

A potential 6.5:1 potential reward, risking 1.5% of capital.

I’ve allowed price a little breathing room today, as it backed away from the 60-65% of it’s ADR. The U.S data hasn’t really affected this pairs activity & I’m still looking for it to break up thru the mornings highs

We finally got the the momentum push thru the mornings high at 125.80, without threatening the trailing stop & it's temporarily run out of gas at the average days range up at 126.30 for a 100 pips profit trade. I identified that level as a probable exit area & I've cashed this intraday trade at the expected destination point.

A very acceptable 6.5:1 reward for a typical low risk entry off a consistently avaialable set-up/trigger combination - nice start to the week!

[spotfx]

A very acceptable 6.5:1 reward for a typical low risk entry off a consistently avaialable set-up/trigger combination - nice start to the week!

That's a fine days work there buddy!
I had my radar turned to Cable & Pound-Yen this morning so missed the boat on the Euro crosses.
Waited virtually all day for a sniff at GBP-JPY before nibbling at it via a reduced stake (due to time of day) at 144.10 as it pushed through the Week & Days open & pulled back.

At current levels (144.50) it's barely covered 65% of it's upside ADR, so not sure how much more mileage is left into the New York close. The larger volumes have likely been put to bed for the day, but I might be tempted to hold this entry & see if we can manage another short leg up to Fridays high zone of 145.90-146.20

[jack mason]

....I've cashed this intraday trade at the expected destination point.
A very acceptable 6.5:1 reward for a typical low risk entry off a consistently avaialable set-up/trigger combination - nice start to the week!

I echo the comments of spotfx, great result! But that's kinda typical of the entry & management of this strategy from what I've read.

Been looking around this morning but not much about to get stuck into regards the pullback entries.
Maybe $/Yen or Euro/$ offering the better of the potential breakout-pullback possibilities?

I think I can see a playable opportunity on the Euro/$ especially as it broke above the days open & pulled back?

[whipcrack]

Been looking around this morning but not much about to get stuck into regards the pullback entries.
Maybe $/Yen or Euro/$ offering the better of the potential breakout-pullback possibilities?

I think I can see a playable opportunity on the Euro/$ especially as it broke above the days open & pulled back?

Yeah, those are typical potential opportunities according to the workings of this strategy jack.

By waiting for the pullback confirmation, you tend to minimize the fake outs & false breaks.

It does have its drawbacks though. When price breaks out & continues on aggressively without stalling or pulling back, you’re going to be left holding the baby. But it’s a risk I’m more than happy to take, as it saves me from climbing aboard & getting caught on a fake out. Plus, if the break out is particularly aggressive, it usually stalls out sufficiently to allow an entry providing it hasn’t covered too much of its average days range before entering.

The other important aspect of this type of execution is the fact it usually offers very acceptable & extremely positive risk (stop loss) placement.

Again, it’s designed to leg you in as the momentum flow gathers pace. Using the weekly & daily opening ticks to gauge your bias, you then simply look for higher highs & higher lows to trigger you into longs & lower highs & lower lows to trigger you into shorts.

How you actually trigger the entry will be determined by the availability of, & your preference for, risk.
But yes, you’re correct both those pairs signalled decent potential this morning.

The eur/usd especially offered positive risk with very good upside potential.
Another occasion where the risk (stop loss) can be kept nice & tight, whilst letting the price action momentum prove itself.

15 minute chart highlighting the pullback entry..



5 minute chart focusing in on the entry above the 1.3925 level & stop loss placement..



And the 30 min chart flagging the 2 upside levels to pay attention to..



The ticket snag confirming the entry above the pullback bars...a case of waiting now to see where the heavier bias momentum lies!
But as long as I can get my preferred risk in line with profit potential, I've done all I can to ensure I'm consistently obtaining value & decent odds.

[jack mason]

Once again, thanks guys (& especially you whipcrack) for annotating your posts with these very helpful chart examples. It’s so much easier to follow your thought process & more easily identify exactly where you’re coming from.
It adds clarity to your posts & explanations.

Yes, that’s where I’d figured you’d be looking on that Euro pullback whipcrack.
Like you say, even if it doesn’t pan out, your risk offers fantastic potential value, as evidenced by yesterdays trade.

You can certainly cover quite a few losing trades with just one successful outcome, especially bolting on the type of trade management aspect you guys utilize.

[Joe Whitehorse]

You can certainly cover quite a few losing trades with just one successful outcome, especially bolting on the type of trade management aspect you guys utilize.

That’s actually the most important part of the whole set-up Jack. You can’t be complacent or too generous with your stops on this type of smaller timeframe trigger.

It’s essential you identify the most appropriate & opportune (technical) risk defense as you execute these breakout-pullback opportunities, otherwise if your stops are too wide when the losing trades unseat you, it’s going to unnecessarily eat into your profits & take that much longer to get yourself back ahead when the winning trades play out.

There aren’t many rules to get your head around with this type of technical play, which is a huge plus point. But paying particular attention to, & adhering to your risk profiles when legging into your trades, will pay very handsome dividends over the long term!

Ensure you always take care of your risk, & your profits will take care of themselves.