Technical Templates

[kyle morgan]

Those are both valid views & pretty much agreeable with regard to the likely reaction zone on the gbp/usd.

That's the beauty of this method of analysis…once the core structure (support & resistance zones & directional bias determined by common timeframe combinations) is put in place there's no obvious confusion or contrary opinion.
The only slight variable will be the risk attitude & trading objectives of the individual traders.

Whenever I look in on this thread & peruse the content I very rarely disagree with any of the generic technical or directional views & opinions. I might not always share exact entry or management specifics, but that's completely understandable for the reasons in the last line of the previous paragraph.
And the primary reason for the similar generic view is the fact everyone is singing from the same hymn sheet because the framework/structure is based on simple, logical analysis.

3 typical yet consistently common examples of using the combination of price action, s&r zones & indicators is highlighted in the 3 charts below.

Before adopting this framework & structure as my principle analysis base, I would have gotten lured into changing direction & being chopped around on numerous occasions. But using these tools in harmony with each other has encouraged me to tighten up my discipline & patience & continue to take the logical trade & directional view, ignoring the temptation to try catch every wiggle or wave & thus reducing & diluting my value & risk ratios.

The 3 charts share a common theme.
All use the dominant slope of the moving average as a primary directional aid. They incorporate the stochastic hook extreme as a confirmation exercise & all use the reaction to s&r zones as the primary motivator to key in off the signals being confirmed by the indicators.

[spotfx]

Here's another view on the GBPUSD. 4H shown below.
I am taking the 4H as my primary bias with the 60 SMA for a visual q. I have made the switch to a slightly longer view ( 1H to 4H) than my previous posts on this thread. Its a much more relaxing way to look at the markets.

My view is bias is still long.

The transition isn't & shouldn't be too painful or problematic at all bigdog.
Major benefit of adopting this model is that it's completely adaptable & flexible to whatever timeframe or combination thereof you prefer to operate out of.
Price action is price action - it says the same thing across the timeframe spectrum.
The only thing that changes are the individual traders perspective & their comfort zones.

So far so good & I'm using the core framework & suggested triggers exactly as advised.
The primary bias/trend is ultra simple to identify & prepare for.
The set ups & triggers are clear, also very easy to identify & simple to execute.

Whenever I look in on this thread & peruse the content I very rarely disagree with any of the generic technical or directional views & opinions.
And the primary reason is the fact everyone is singing from the same hymn sheet because the framework/structure is based on simple, logical analysis.
using these tools in harmony with each other has encouraged me to tighten up my discipline & patience & continue to take the logical trade & directional view, ignoring the temptation to try catch every wiggle or wave & thus reducing & diluting my value & risk ratios.

As Jimmy said, there should be no surprises that everyone following this template see's the same bias.
If there were differing opinions or varying degree's of directional bias then something would be amiss.

All of the regulars who quickly became familiar with the style back in 2009 & early 2010 when it was first presented by Joe, then expanded by Jimmy & Carll
experienced similar positive experiences when applying the concepts. As you're finding to your benefit, it's not an especially difficult or complex set of criteria to hang your hat on. The only personal amendments & adjustments required are purely risk & objective related.

Each of us will harbor differing views on those 2 key elements, but the basis of the analysis prep will always remain constant.

[bigdog]

EURUSD 1H shown below. Green vertical lines are today and previous days open price.

Primary 4H chart points to a long bias for me.
A nice hammer/spinning top/pin bar (candlestick patterns are not my strong point) formed on the 1H and even better on the 2H. Stochastic below 20. ADR with plenty of room to move. I also have S/R line around 1.3150 although not shown on the chart.

I hope this helps others by posting in real time. What I do want to point out is that my bias can still be wrong and the market is generous enough to give me some pips.

[kipper]

EURUSD 1H shown below.
Primary 4H chart points to a long bias for me.

Agreed. I see it exactly the same until the 4H 60sma turns over completely, which looks like it will coincide with the 1.30 level that Carll mentioned last week

A nice hammer/spinning top/pin bar (candlestick patterns are not my strong point) formed on the 1H and even better on the 2H.
Stochastic below 20. ADR with plenty of room to move.

I don't think the exact names are so important bigdog, I'm also not very conversant with all the technical titles. The important thing I've taken away from the information these guys have shared is what these types of bars represent & where they form on the chart.
Neutral or bullish bars at pullback levels at previous day highs/lows or visible support & resistance zones in line with a dominant bullish bias would always grab my (long) attention, as would the exact opposite for shorts within the context of a bearish pullback. I'm sure you're like me & the rest of these guys in only being interested in trading higher probability options.

What I do want to point out is that my bias can still be wrong and the market is generous enough to give me some pips.

Absolutely. Which kind of confirms & backs up the comments spotfx made yesterday about individual traders perspectives, risk attitudes & objectives.

I for one appreciate all the many chart examples, live or otherwise. It reinforces the structure & highlights the many different angles that this concept is able to be successfully applied to.

[Joe Whitehorse]

EURUSD 1H shown below. Primary 4H chart points to a long bias for me.
Stochastic below 20. ADR with plenty of room to move. I also have S/R line around 1.3150 although not shown on the chart.

What I do want to point out is that my bias can still be wrong and the market is generous enough to give me some pips.

A very nice observation that includes all the elements necessary to arrive at a lower risk/higher probability trade opportunity.

As you quite rightly point out, not every entry will return maximum value to risk ratio, but what this framework & set up combination actually affords you - apart from very acceptable risk/reward options - is the ability to actively manage your positions, regardless whether they're short or long range objectives.
As long as you're entering at the optimum levels (which the ADR & stochastic hook primer encourages), your margin for error is surprisingly generous, as you will discover over time.

Nice trade, well done!

[West]

I have been observing two intraday shorts play out this morning on GBP/USD (1-2-3 off pre week low) and GBP/CAD (break and pullback of support). If the trade is purely an intraday position, is it not recommended to trade pairs that have significant economic data due out later in the day as GBP does?

Thanks
West

[whipcrack]

It's certainly advisable to be aware of what's coming up for release & how it might impact the short range price action yes.
Red flag events such as Interest Rate news, Inflation & Productivity Data can adversely influence the current scenario if the numbers or outlook under or over shoot consensus & that could affect your intraday positioning.

It doesn't really affect longer range positioning as much, especially if trades are bedded in & have established some kind of foot hold on the chart.
It's not so much the actual release, but the implications of a large imbalance in the expectation that can throw a spanner in the works, or positively impact your bet - depending on where you're sitting when the data hits the tape.

[West]

This is a trade I took this morning and the subsequent stopout. I'd be interested to hear thoughts on my approach. EURJPY broke out of its range yesterday and remained bid during Asia. I entered long after the pullback to the preday high and placed my stop below the consolidation ledge. Plenty of ADR gas left. I assume this would qualify as a momentum setup trigger that was originally shown at the start of this thread? Do others still use this type of setup?

Thanks
West

[bigdog]

4H is definitely pointing in the long direction West.

Here is an entry off the 15M chart with stoch hook confirmer.

As a rule I am only looking for entries from an hour before London open.

I only trade 1-2-3 entries off the 5 min charts with stoch hook.

[jack mason]

This is a trade I took this morning and the subsequent stopout. I'd be interested to hear thoughts on my approach.
I assume this would qualify as a momentum setup trigger that was originally shown at the start of this thread? Do others still use this type of setup?

Nothing wrong or out of line in your approach to that trade at all from what I can see West.
It simply failed to kick on & you were smart enough to have a stop loss attached to your entry to protect any downside.

That particular trigger is as valid as any other momentum type entry technique.
I took 3 trades this week & got stopped on 2 of them.
A usd/cad & a eur/usd trade, taking much the same type of entry as you did on that one. I got the green light on all aspects of the usual pre-trade prep for both entries, but they simply washed out. That's me cashed & out for the week booking a -0.8% on my ledger.

That's the market for you. Important thing is I protected both positions with a solid stop loss & the impact on my account is negligible because I’m trading well within my risk parameters.
As long as I strictly control my downside I can aggressively manage my upside when the next bet begins going my way.