Technical Templates

[xerb]

Sensible advice from goldtop regarding today's price action. I've left it alone today until the environment offers up a more solid footing to get back in a long position in line with the current dominant bias.

As these guys so constantly remind us, there'll be plenty of time & opportunity to hop on the train when it confirms it's done checking out lower demand.
Unsurprisingly, the average daily range extremes came into play down at the day's lows & if you were seeking out any price patterns or trigger opportunities then a cursory glance at those numbers would have revealed a very familiar sight!!

Apart from the tentative 'risk off' stance today accompanied by the reasons goldtop highlighted, there was nothing else of any real significance to suggest this pullback price action was anything more than a sedate profit taking exercise & the coverage of the ADR coincided with the bottoming out of today's activity.....something which the regulars on here shouldn't really be too surprised about

[kyle morgan]

Giving this one a whirl right around the 1.3180 entry level.

Bias remains to the upside on the 4 & 1 hour charts.
Entry at the pullback level represents just 35% of the days range, leaving plenty of available upside.
If it covers the ADR that would take it to slightly above last weeks & friday's highs beyond 1.3240, offering at least 3:1 odds with a 25 pip/1% stop-loss back below the lower line on the chart @ 1.3155.

Those kind of minimum odds are more than acceptable to me in order to test more potential upside.
If price manages to push up beyond last weeks highs I'll look to see if there's any further mileage in the trade & manage it from there.
If it fails & stops me out, I'll re-assess, based on market driving influences & wait for another positive odds opportunity to get back in again.

[jack mason]

Nice entry kyle, good luck with it.
I was reading last night where Tess mentioned good demand for Euro, Aud & NZD into month end fixings both in Asia & Europe, so that should help support the longs that were triggered during yesterday's New York session.

I've been eyeballing the continued long bias on nzd/jpy, & the twin short bias on eur/nzd & usd/cad previously mentioned on here for opportunities this week & settled on the usd/cad short option mainly influenced by the inability to break back up through strong prior support (now turning into resistance) at the 1.0050-70 zone.
A nice topping set up yesterday during London & New York trade with dual stochastic hook confirmation on the 60 & 15 minute charts was enough confirmation to take the trade.

As you say, there's plenty of choice available across a wide range of candidates to offer a good selection throughout a typical weeks trading.

[kyle morgan]

I've been eyeballing the continued long bias on nzd/jpy, & the twin short bias on eur/nzd & usd/cad & settled on the usd/cad short option mainly influenced by the inability to break back up through strong prior support (now turning into resistance) at the 1.0050-70 zone.
A nice topping set up yesterday during London & New York trade with dual stochastic hook confirmation on the 60 & 15 minute charts was enough confirmation to take the trade.

That's a far more sensible & cleaner set up than this sloppy old Euro trade Jack.
That'll teach me to get involved in a pair with such contrary & conflicting background influences.

Until they get some solid agreement on the next level of debt financing commitments this thing is simply going to get bounced around on the back of nervous, twitchy headline output.

[whipcrack]

That's a far more sensible & cleaner set up than this sloppy old Euro trade Jack.
That'll teach me to get involved in a pair with such contrary & conflicting background influences.

You'll get a bit more bang for your buck playing this european slop fest via the indexes kyle.
I note you mentioned shares/index candidates in your previous post, those are certainly viable options to dial into when your favorite currency pairs are slopping around in lethargic trade.

[kyle morgan]

Absolutely whipcrack.
I've set up all my 4 & 1 hour charts right across the complete instrument range with the stochastic & 60sma for guidance on bias/trend definition & my 5 & 15min charts with the stochastic for guidance with entry requirements.

I've been playing a long Dax position since early January off that 6100 s&r level that spotfx highlighted back in October on page 36.
Price has remained north of the 60sma on both hourly charts, & each time it's pulled back & hooked up underneath the 20 level on the hourly I've simply picked up another long via the 5/15min charts on hooks up off 20 on those timeframes during the european morning sessions.

That's been a nice relaxed trade since the start of the year. As has Amazon off the 180 s&r level & BAC through 5.50 off that big 5.00 triple support base.
I wasn't sure if these simple, basic technical tools were packaged to operate efficiently on indices or shares etc so I messaged Jimmy & he confirmed they work across all asset classes on any multiple timeframe option.
And I can confidently confirm they do indeed offer great entry triggers on those candidates. It opens up so much more variety & offers additional options for diversifying my equity base.

[Se7en]

That's why it's best to follow a good selection of instruments & only plot the very basic bias criteria on your charts.
I now follow 12 pairs with decent ADR's + the major indices, oil, gold & a few high volume individual shares (goog/rimm/BAC/Amazon etc) using the exact same setup/triggers taught by Tess, her colleagues, Joe & these guys.

If you don't mind me asking, which broker or brokers do you use to accommodate a cross section of instruments kyle?

[kyle morgan]

If you don't mind me asking, which broker or brokers do you use to accommodate a cross section of instruments kyle?

I have a universal account with Interactive Brokers se7en.
http://individuals.interactivebrokers.com/en/main.php

It enables me to access stocks, forex, futures, commodities etc from one single account.
I haven't experienced any problems whatsoever with fills either upon entry, partial or full exits.
Spreads & commissions are great too, & everything is transparently presented on their site
They also have offices all over the world, which is convenient when you need to speak to them & when considering currency deposits etc.

[hawkmoon]

i can also vouch for them Se7en. i was using EFX as my primery broker up until last March & decided to give IB a try out on recommend from a couple of the guys on Tech Temp threds.

i still keep EFX as back-up but now use IB almost exclusivly for my week to week business & a spreadbet company (in my wifes name) for my longer term trades.
they have not given me any problems since i joined them.

on the trading front; a nice resumption of the bias on the major european pairs today after the pullback ran out of steam. looks like a few were caught in their short trades trying to pick tops on eurusd & gbpusd from yestardays bets.

always pays to wait patiently & allow the market to readjust to it's mid-term bias rather than try to front run the prices.

[West]

Hello everyone

This is a very interesting thread and thanks to all those who have contributed. I have a few questions on trigger options and would like to hear others' opinions please. Using AUD/USD today as an example, I have marked out the S/R zone from last weeks high to about 1.0660 as a likely area for fresh bids on a pullback. As per the excellent examples described here, I am looking for a 1-2-3 in conjunction with a stochastic hook on the 60/5 or 60/15 minute charts to enter.

My difficulty is determining where I should place my stop as the S/R zone often can be 30 pips wide. Should stops be placed below the S/R zone (below 1.0660) on the basis that buyers may come in anywhere from 1.0685-1.0660 or have others found that a tight stop below point 1 on the 1-2-3 is sufficient (assuming there is an acceptable Risk:Reward for either)?

Thanks
West