Thursday, 24 November 2011

DAX ( Z11) and EURUSD ( trade setup continued)....Has Christmas come early and Please can someone tell me what does an ORDERLY EXIT really imply?

More quality trade opportunities ( i use the word 'quality' carefully & rather than 'high probability' which is much over used and means nothing and everything -regarding each traders subjectivity/objectivity) and than i have seen for days...Perhaps it's that the US is having a day off that the trends are that much purer today?After all it is Euro Zone orientated fundamentals at work here.
PS: For greater clarity about the trade I added these two charts at 5.30 euro time.
Method: I combine the visual representation of reaction/median lines with the combination of Jimmers 2 x and Buffy's B-line. The Ensign template is a bit out of date ( circa 2004) BUT it works for me and the newer templates are simply too much for me as i am always cross referencing the reaction lines plus the Ensign 2 x B line template in multiple time frames ( 1min or 2 min or 34, 89 or 144 tick in the latter). In this case ( in addition to the reaction line setup- retouch on orange ML and failed re-penetration of red dashed reaction line ie: retouch) the Ensign template we had divergence in MACD, Bolly band touch thru and falling B-line and in the 2 x window the long term stoch (21-10-4) has ( not perfectly) kept trend direction down. The next bar after entry is a LL and takes me below the MA's. Stops never more than a few pips. This system was originally intended to trade Emini S&P but i have adapted it to my needs with certain settings tweeked. It works for me across many markets and in high time frames BUT you must use only the classic setups in these TF's and let the long term stoch and the Bline be in the trend direction ie no counter trend trades in 240 min HG Copper in conjunction with a ML/RL for example!

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