The London Open

[Dan007]

Hi all

Trust everyone is well...

My philosophy in trading is TO keep it simple and stick to your trading plan...

I use a 200ma & 50ma simple and a 20ma exponential...The 21CCi and 10CCI are key as well for trends...

I work off a Daily, 60min and 15min charts for specific entry points.

The 1st point is to always remember where you are compared to to your 200ma. This is critical and the greater the distance you are away from the 200ma the greater the chance of an aggressive pullback to the 200ma.

There are 3 stages in a move...

1) The drive away from the 200ma..Use the 20 and 50ma as a support or resistance.

2) The pullback and break of 20ma and 50ma..This is what we call thE Box strategy when the candles are boxed between the 200ma and the 50ma... Be careful here as u never truely know the exact support and resistance levels... However the 50% retracement rule is key here and calculate this before every trade... Look at the GBPJPY chart below... The 1st higher low before the break of the 20ma was key and then the break of the 50ma for a 50% move, then a retacement for a 123 setup and a bounce off the 50ma for a pullback to the 200ma....

3) At the point of return to the 200ma is key..This is the resting point and you need to wait for a clear move for the direction... The 21CCI is key here and on every time frame the 21 CCI shows me the trend...

Lets look at GOLD... I have to admit i love Crude as well and been long for quite a while and bought again on each dip... Its bid and its about taking advantage of these trending markets...

Ok Gold...Look at the Daiy chart below and the breakout of the resistance line..Look how the 21CCI broke above the 0.00 level for a clear change in trend. This strategy is the box strategy because we are positioned betweeen the 200ma and 50ma as shown on the chart so we need to be careful of the 50ma as a resistance level here...

Ok lets look at the break on the 60min chart as the daily was set for the break...Look how the candles break the 50ma on the 15th and the 200ma before hitting the daily 20ma (dotted yellow line)..This was 1st target..Here we wait for a retracement back to the 60min 20ma and 50ma before the momentum up again... Can u see the 21CCI (in green), showing the way and the dip down below the 10CCI, before it bounces back above the 0.00 for a move higher... Perfect setup and no need to head to the 15min for an entry...

Recently with the markets being so bad i have had to move onto the 15min on the currencies for entry points so i can grab at least 25 points on each trade on the london open...I tend to pick 3 or 4 from the 10 pairs...

I have specialised on this for ages and it definitely works...

Take a look at the GBPCHF chart below today on the 15min chart..The CHF looked bid, even in a quiet market and i have to admit GBPCHF is my favourite currency pair...Look at the 123 retracement back to the 200ma led me to believe this was a short for today... USDCHF started to move as well but look how the 21CCI showed me the way for a move lower from 2.0500 to 2.0420... Look at the JPY currencies as well... Quiet similar to the CHF today to be honest with USD weakness all round...

I focus on pairings of CHF's , GBP, EUR's and then JPY's and when these pairs move together i then look for the best setup and then trade the 2,3 or 4 pairs and this tends to bank me quite a bit each am from 6.30 am to 10am...

Dont trade US anymore as i dont really need to now and i like to stay fresh each am for the 1st move...Prefer to be with the family...

There is a little bit more to it and i will cover it later but that is the idea...

KEEP IT SIMPLE...

[FerruFx]

Great post. Great thanks!

FerruFx

[Dan007]

Morning all...

Concentrated on the strength of CHF today and the strength of the EUR and GBP against the USD. Gold showing support initially for USD weakness on london open...

EURUSD - Perfect break with German PPI coming out stronger than expected and a target of 1.5600 for the morniung session.. A great start with 50 plus pips.

GBPUSD - With USD weakness all round the GBP started to build as well off the 50ma for a move to test the Daily 20ma.

USDCHF - Look at the 50ma crossing down from the 200ma.. The red heiken ashi candles get u in on the break for a move from 1.0500 down to 1.0450 this am... A great 50 plus pips to be had...

GBPCHF - Usdchf led the way and was looking for a pullback to the 4 hour support..Entry on break of 50ma and 200ma from 2.0490 to just below 2.0450... A solid 40 plus pips this am to be taken...


Excellent morning.... Ok off the beach
Dan

[jimbobos]

Hi Dan,

Trading your strategy you discussed above seems very interesting. The way you use the 21 CCI to show you the trend works well in the thumbnails you have posted. Look forward to more to come!

J

[Dan007]

Hi Guys

Sorry i will come back to any questions but i have to run out my office in 30mins...Apologies.

Interesting morning and should have capitalised on more but missed certain entry points... Huff!!!!!!!

Lack of data in US and GBP left for only the German IFO to give support to the Eur..No surprise that figure was going to be strong!!! Seems like the Eur is run on one economy...

Annoyed with the CHF strength, as could and should have picked more on that trade....GBPCHF still leading the way and my favourite....What a 200 point move.

The EURUSD came in too late after jumping 45 points in 1 millisecond with the news. Very hard to jump in on that...

Look at the higher low in CHFJPY... One of my team picked this perfectly from 99.65 for 80 pips...

Cable seemed the best trade this early am with a pullback through the neckline at 1.9668 for a pullback to the support at 1.9623...That seemed a lot safer as a gap trade to the support than EURUSD...

The DAX had the classic 50% retracement to the 20ma and 50ma for then a push lower smashing the 200ma... These Indices look vvvvvvvvvvvv weak again.

Look how the FTSE opened again witha nice 50% retracement to the 20ma and 50ma as well and then pushed lower to 6,200..

Not an easy day but opportunities were there to be taken... Annoyed on a few of them but hard to maximise on all of them...Saying that this little team is calling good trdaes and its all about confidence in these markets..Yesterday was clear as water and today entry points were more difficult and u have to be very careful on where u put stop losses and how much u risk...

Enjoy guys... Off to play golf.. Will try and answer a couple of questions later.

Dan007

[Iman]

hi dan thanks a million for your interesting posts, but I still can't understand how you pick you entry and most importantly exit points! would you please explain more with further details?
thanks in advance for your time and effort

[Dan007]

Hi Guys

Bit of a messy day today to be honest...All FX charts setup for retracements back to the 200ma but the problem with this type of trade is that you are trading against the main trend...USDCHF and GBPCHF were all in down trends but finding large support off the daily 50ma.

It was a tough morning because EURUSD started weak, giving an impression that the retracements were on and then rallied and then fell off again after a false break of the 1.5800... USDCHF was then left stranded but interestingly GBPCHF, which was called on the break of 2.0265 came into play with a pullback to the 60min 50ma.. Hard to pick but nevertheless a good break and pullback...

The FTSE was the only other cheeky play.... Support off 60min 200ma on my 15min chart.... Resistance line is clear and break from 6,190 to 6,230...

Sentiment is changing by the day and be wary of false breaks on 15min charts... The 60min smoothes it all out.

Also always remember where the price is in relation with the 200ma... Vvvv important, as pullbacks can be aggressive the further away from the 200ma.

Enjoy the afternoon
Dan007

[Dan007]

Hi Iman

Entry points and exit points come from my 21 CCI and 10 CCI... The 10 will get you in slightly earlier and depends on the position of the MA's...Eg today all markets had been overbought or oversold on the 60min charts which means pullbacks were on...Look at the GBPCHF 10 and 21CCI moving into positive territory.

Cheers

[Iman]

now I see.. but it still seems a bit tricky for me..
thanks a lot man have a lovely afternoon

[Dan007]

Hi Iman

Don't dismiss this as tricky... I have worked on this for a vv long time and it couldnt be simpler once u nail it. My student Zak was taught in december and is up 450 pips in 2 days. Alot better than snipping as they say!!!

I have taught many people and they are rewarding themselves with over 500 pips a week...Its worth a look but again up to you...

Morning all

Fantastic positive room today. EURUSD, USDCHF and CABLE fizzled out but no harm done and many of the MBC capitalized on the CRUDE, GOLD and EURJPY which is great.

EURJPY broke below the 163.50 level for an entry and a pullback towards the 200ma. Profit target was support line at 40 point profit and others decided to run it for 100 point profit…This is all down to money management and the main thing the risk was evaluated and it was a high probability trade to take...

GOLD was a great long and alerted a long position around the 920.50/921.50 and took a solid 30/40 pips on this trade back to the 15min 50ma..

Crude was again alerted after yesterdays large fall of 500 pips for a bounce from 131.30… We are now 100 pips up in this and watching…if you like it for a long play look at the longer term 4 hour charts.

Have a good afternoon... Road trip this weekend with the family..Going to check out some nice beaches.

Dan007