Technical Templates

[whipcrack]

With Aussie getting battered (along with the other high profile instruments) in this weeks risk averse trade, it's offering up some pretty keen low risk entries..

I'll keep a watch on the eur/usd, gbp/usd & aus/usd & probably pick up a pullback short into end of week providing I can get in on one of these lower risk hook entries

There's definitely no shortage of pullback short hook entries this week on the spotlight pairs guys!
Global debt concerns, euro in fighting, stagnant growth (lowering of interest rates etc)...the doom & gloom merchants are virtually shovelling the ammunition onto your trading platforms

[jjay]

I recall Jocelyn & Manny discussing potential opportunities in the cross pairs that would perhaps yield keener profit (& reduced risk) revenues into 4th quarter.

This was one of the cross pairs they highlighted in the room during mid October as a likely candidate to keep close tabs on as it descended down to an area of prior reaction during the summer.
I'm (as they are) now watching this latest development to see how it reacts to the current levels, with a view to picking up another long on a positive move back towards this localized top at 1.5800

Providing I can obtain good risk placement on the bet I'll grab a ride to check any further upside potential in this pair.

Took all week, but it finally huffed & puffed it's way back up to this local resistance zone into end of week trade. I hope you climbed back on after cashing profit on that initial move back to test out continued demand at the week long support zone!

1.5950 is the next upside target in the sights, with 5650-80 the first test of support followed by stiffer potential bid action back at the current weeks lows at c5520.

[jack mason]

I hope you climbed back on after cashing profit on that initial move back to test out continued demand at the week long support zone!

If there's one thing I've learned since joining this thread it's to pay very close attention to the price action when it begins moving around clear, well touted technical levels & zones, particularly when the current fundamentals are still indicating further directional bias potential.

Unfortunately I missed the optimum value pullback entry yesterday when price moved off the Asian 1.5650 high, but caught the 2nd pullback from 1.5700 during the London lunchtime which corresponded with a 5 minute stochastic hook signal.

Rather than take part of my bet off, I've fully encashed up here at this 1.5800 resistance.
It's end of week, there doesn't appear to be too much appetite to drive it further this morning & I'm more than satisfied with 2 excellent chunks of profit from the pair this week!
I don't have the ammunition to doggedly track these pairs up & down the chart like you guys, which is why you're the professionals & I'm not (yet!!)
They’ll be plenty of other opportunities this month to get my teeth into some juicy bets.

[zilly]

1.5950 is the next upside target in the sights, with 5650-80 the first test of support followed by stiffer potential bid action back at the current weeks lows at c5520.

Price has been suspended above your 1st area of support for over 4 hours now, as though it's being worked like a puppet on a string

I thought I had a pretty good feel for price....that was until I bumped into you guys.
Nice going man.

[zilly]

It's flirted with 5950 the past 2 days on the move away from that first support zone at 5650-80 that jjay highlighted last thursday, tacking on another 300 pips & powered through it this morning assisted in no small part by the poor Chinese pmi data & european inspired risk aversion care of that Belgian dexia bailout news.
Buying dips has certainly been the higher probability option on this pair.

I have the 6050 area marked out as next potential resistance backed up by the 3 previous touches during September & October.
Supports are very clear & if I've overlooked any obvious levels I'm sure you guys will prod me!

[Carll]

Supports are very clear & if I've overlooked any obvious levels I'm sure you guys will prod me!

No prodding required at all zilly, those supports & your next upside price target are right on the ticket.

In fact price has pulled back nicely from todays highs & found further bids at your first zone of support, signalled a typical stochastic hook trigger at the London open & looks like making a run for those highs on this next mini-leg up.
Nice simple, effective analysis...you should get another favorable return out of this bet

[shona123]

The support zones you've drawn on that last GBP/AUD chart look fine from where I'm sat zilly.
I also concur with your next potential upper level.

[zilly]

No prodding required at all zilly, those supports & your next upside price target are right on the ticket.
Nice simple, effective analysis...you should get another favorable return out of this bet

1.6050 represents the average days range virtually to the pip.
It definitely makes life simple when the price action obeys all the rules & does what's it's supposed to

Tell you what guys, I was very sorely tempted to add another stake to the position when it pulled back again to the 5770 level into the late London morning. There was a nice stochastic hook entry on the 5 minute chart with 50% of the days range left in play at that point.

The upshot is I'm now identifying these potential pyramid opportunities with comparative ease.
The inclusion of & use of the average day range numbers really adds zip to this strategy!

[whipcrack]

Tell you what guys, I was very sorely tempted to add another stake to the position when it pulled back again to the 5770 level into the late London morning.

I think you meant to type 5970, but I'll let you off
Nice going & good job with the overall analysis.
Although there isn't very much (technically) to keep track of, it still requires an orderly & disciplined approach to maintain focus & consistency.
You're obviously getting to grips with the generic framework & specifics of the set up, so well done man!

There was a nice stochastic hook entry on the 5 minute chart with 50% of the days range left in play at that point.
The upshot is I'm now identifying these potential pyramid opportunities with comparative ease.

Once you get your generic structure (local & regional S&R zones + previous day & week ranges) marked out & you're facing the right way regarding the pairs current dominant bias/trend direction you're basically sorted.
The only things left to slot into place are the set up/trigger combination & whether there's sufficient juice left in the average days range to make the trade a worthwhile exercise when you've located an appropriate slot to place your stop loss order.

The inclusion of & use of the average day range numbers really adds zip to this strategy!

Oh yeah, that's one of key elements of the whole thing.
1) There has to be enough potential range coverage in a pair to make it a worthwhile proposition....&
2) You absolutely have to have sufficient room left at entry to ensure you give your bet a fighting chance of returning decent odds versus the risk you're laying out.

Get those 2 in the bag & you're making life a whole lot easier on yourself right from the outset, especially when you're executing intraday positions.

[kipper]

Hi guys,
It looks like the holiday period has started early this year judging by the noticeably shrinking ranges across all the pairs during the past 2 weeks.
I read where liquidity has been reduced by as much as 40% over like-for-like comparisons of 12 months ago.

Do you guys reduce your exposure in lock step with this reducing volume or use alternative strategies until things return to normal?
I haven't traded nearly as regularly since the end if November as the set ups during the early european session have been visibly lacking. I note earlier in the thread where you advise caution around this time of the business year, & was wondering if you more experienced traders have noticed an obvious difference in the price action this year compared to others.

It's been a great year on the thread & a personal triumph for me since finding you all.
Thanks for all the great advice, tuition & commentary. I very much look forward to getting more involved during 2012 as I've changed jobs & will now be working from home. That will mean a lot more opportunity to participate & add some input to what is, a fantastic resource!!