EURJPY LONG 9-24-10

[Mike]

Wanted to share this excellent trade I could not pass up on last night and the reasons why I entered Long at this particular moment.



So I've quite successfully adapted this method of looking at 600T and 100T/50T charts at the same time to find the longer term trend and points for precise entry. Now without this, I'd be watching a 600T chart by itself, which moves much more slowly than a 50T. But if I watch a 50T chart by itself, I'm finding too many places for entry based on the rules of my system.

So a combination of both worked really well in this and most instances. There were two places for entry, I caught #1 alone, but #2 would have been another really nice one which I will explain.

ENTRY 1
We see price move toward the yellow balance point line as well as the purple 60MA on our Blue 50T chart, this by itself is a trigger for me, buying dips of the balance point line and seeing if there are enough traders out there who share my sentiment and go long. As we see here the Yellow Balance Point line really got us into a magnificent trade, but on the 600T chart which I have so often touted to be a great tool, things are already "green" so buying on green and selling on red, especially on higher time frames really gets in you in at the end of trades and takes much of the logic out of what it takes to be a consistently winning trader. I only add that in there because in other discussions I see people gravitate toward the idea that you can just buy with green and sell with red, this is not the case.



ENTRY 2
I actually see the opposite here, a great point for entry on the 600T chart, a possible pin bar set up, so even without the indicators we see these candlesticks form like in other discussions about price action lots of traders focus on. I go one further and ask you who just use price action, without the containment band indicator on your chart from top Gun, or something similar from another charting software, how would you know this possible set up was about to occur. I was literally watching my charts and maybe up to a half an hour before this candlestick set up actually bore fruit and presented itself, I was expecting price to reach the middle line (white containment band which represents 60min moving average), and reverse! So, we are all trading the same price action here, some with indicators, some without, but I thought it was interesting that we'd probably all have went long at entry 2 no matter what system we follow.

[Levine]

See on Circle 2 why does it go below that yellow line you mention, you enter, but in the first it doesn't and looks like a better trade and you don't enter?

[Keck]

very nice , where to sign up for signals?

[Mike]

We/I don't give out signals at the moment, not sure how to accomplish that or if I would want that extra layer of burden added to my trading (taking care of other people's money as well as my own). I'll make an announcement if we ever do.

[Themachine]

didnt you circle the second circle in the second chart in the incorrect area? It should be a few hours after that point.

[Killian]

Hello sir, could you tell me if there was a way to automate this strategy I keep looking through your examples and it's one of the best I've seen yet.