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Alert of EUR/USD strong movement

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Andreas Bauer
947
Andreas Bauer  

Hi,


in this topic we discuss our forecast of whether EUR/USD will move strong during the next period, or not.

As for now, there is a difficult situation of the EUR/USD. It sticks at its price of 1.154 and has no real ability to reliabely grow up or down.

Thus you see that on 29/30.05 we had the same problem; E/U moved strong down and then up on these days.

Using a grid EA, this could lead to some problems because going out of margin.


Andreas Bauer
947
Andreas Bauer  

This is what I mean:

You see a very strong support, on the 1 hour as well as 4 hour chart,

but the EA starts to sell positions and increase the lot size.

The question now is, when will the price stop to increase, and fall again; and will there be enough decrease so that the basket of opened trades will sooner or later close in profit?!

How will the price move on?!

(1. direction, 2. volatility)

PennySeven
570
PennySeven  

Higher

D

Daily Stochastic UP divergent.

h6

H6 Double Up Divergence: MACD and Stoch

h4

H4 Double Up Divergence: MACD and Stoch

h2

H2 Triple UP Divergence:  MACD and double on Stoch

h1

H1 Double Up Divergence: MACD and Stoch

My humble opinion. I do not trade any of these time frames. I trade the M2/3.

Andreas Bauer
947
Andreas Bauer  
PennySeven:

Higher

Daily Stochastic UP divergent.

H6 Double Up Divergence: MACD and Stoch

H4 Double Up Divergence: MACD and Stoch


H2 Triple UP Divergence:  MACD and double on Stoch


H1 Double Up Divergence: MACD and Stoch

My humble opinion. I do not trade any of these time frames. I trade the M2/3.

Hi,

interesting inside.

You use the MT5 platform to get these timeframes?!

So you actually trade the M2/3; can you tell me, is it better than trading higher timeframes (I trade 15 min)?!

Never traded 2 or 3 min.

Regards

PennySeven
570
PennySeven  
Andreas Bauer:

Hi,

interesting inside.

You use the MT5 platform to get these timeframes?!

So you actually trade the M2/3; can you tell me, is it better than trading higher timeframes (I trade 15 min and up)?!

Never traded 2 or 3 min.

Regards

You use the MT5 platform to get these timeframes?!

Yes I do. This is the MT5 forum.

I trade the M2/M3 after 10 000 hours optimising my customised MACD and customised Stochastic over the last three years demo trading 16 hours per day. I only day trade the EuroDollar and only at 50 leverage. 

It is only possible for me to trade the M2/M3 because I have developed the appropriate customised MACD and customised Stochastic indicators to do it. I also use the 10 crossing 50 Exponential Moving Averages. 

I agree with the generally accepted view that there are many apparent false signals on the lower time frames. I would not be able to trade the M2/M3 without my customised MACD and Stochastic. I also use a time indicator. 

Is it better than trading the higher time frames? Yes, insofar as it allows me to aim for an average of 10% profit per day. I have 19% profit locked in for today - at the moment. 

acc

This is always at 50 leverage and only in the EuroDollar.
Andreas Bauer
947
Andreas Bauer  
PennySeven:

You use the MT5 platform to get these timeframes?!

Yes I do. This is the MT5 forum.

I trade the M2/M3 after 10 000 hours optimising my customised MACD and customised Stochastic over the last three years demo trading 16 hours per day. I only day trade the EuroDollar and only at 50 leverage. 

It is only possible for me to trade the M2/M3 because I have developed the appropriate customised MACD and customised Stochastic indicators to do it. I also use the 10 crossing 50 Exponential Moving Averages. 

I agree with the generally accepted view that there are many apparent false signals on the lower time frames. I would not be able to trade the M2/M3 without my customised MACD and Stochastic. I also use a time indicator. 

Is it better than trading the higher time frames? Yes, insofar as it allows me to aim for an average of 10% profit per day. I have 19% profit locked in for today - at the moment. 


This is always at 50 leverage and only in the EuroDollar.

Congrats on your success! Seems that you really made some good exercise on that trading style.

You say it works best with your customized MACD/stochastic indicator...?! May I ask you if you would share it or give some tips?!

Thanks

Andreas Bauer
947
Andreas Bauer  

Just as I thougt.

Acutall had the intent to switch the EA off due to that strong support zone and chart formation, but let it then run (with 0.01 grid step this time).

Now going correct direction.



In future I think, I will stay out of the market if there will be such a strong support zone (it is visible on 1h, 4h And daily chart).

Additionally I think I will start to use Moving Averages and Bollinger Bands, to determine whether it is a good environment for ranging prices or not.

Andreas Bauer
947
Andreas Bauer  

You see that EUR/USD has only correlated in the zone, it is in now. Chances for increasing prices from here on are higher.

(And although it does not have to be a true reverse, it looks like that.)



Additionally, and this is fatal, what comes to the strong support zone, is a symmetric figure in the chart - and we all know how much the markets love symmetrics.


I can imagine that in worst case scenario, 20 open orders / increase to 1.84 could be essential for going out of it with a profit.
Andreas Bauer
947
Andreas Bauer  
PennySeven:

I watch all the EuroDollar charts available - except the M1-  on the MT5 platform for 16 hours a day when I trade. That is M2, M3, M4, M5, M6, M10, M12, M15, M20, M30, all the Hourly charts plus the Daily, Weekly and Monthly charts. M2 to H1 all the time. The rest, now and then to see the bigger trend.

I have the 10 crossing 50 Exponential Moving Averages on all my charts. 

I have a rule that every Long Move has a specific 10 crossing 50 EMA that is valid for that specific Long Move. It is highly profitable to identify the specific 10 crossing 50 TimeFrame that is valid for a specific Long Move as soon as possible.

You trade the M15?

The current intra-day EuroDollar Long Move´s valid 10 x 50 is on the M15. See below. 


Ah okay, you have a real multi-timeframe approach with MACD/Stochastics as support indicators.

Yes, in my opinion the EUR/USD is also in a buy mode and maybe this is just the start, after it has fallen for weeks, since mid of april.

That would be double bottom reversal (as you can see in the 1h/4h chart).

Bad for me, cause the EA has to handle some more difficulties before gaining any release.

You say that in your trading style "It is highly profitable to identify the (...) specific Long Move as soon as possible."

I assume this is what you need the M2-M10 for, right...

Andreas Bauer
947
Andreas Bauer  

Chances are high that price will not move into range of red box in near time; especially when the horizontal green line will be broken.

(So EA will most likely be required to open more sell orders.)

On the other hand, if 1.6720 is a good resistance, the price could gain some pullback.

[If you are going out of margin you have to open equal buy orders at those zones, where EA opens sell orders.]

Andreas Bauer
947
Andreas Bauer  

Does it really look like this, aiming 1.18?! Oh yeah, ...


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