CADJPY 21 Nov

Early trade. I like to profit while sleeping ;-)

Anyway, from yesterday I had a balance line (#1) and fractal (#2) stop orders. And with the coffee another one on 2 AO (#3). Because of the early trade all were with trailing stops.

I didn't remove trailing and next session stops were hit (on #4).

EURCHF Nov 20

This week started with a loss. Double sell fractals (one from Friday, one from today) turned to a loss.

Sell stop was placed under Friday's fractal. Unfortunately the second attempt formed second fractal which turned to a rally signal. The same bar closed above pink line and the next one hit the stop loss.

Short and ineffective trade. We'll see next one.

GBPUSD 16 Nov.

This was a tough trade decision for me.

Almost all the day price was drifting on H4 chart. After the first DBar price was hesitating around it neither breaking it up or down.

The second one also wasn't credible. I've placed the order (buy stop) after the pull back two sessions later.
This was supported by the Balance line and 3 green AO signals where I've added two more orders.
They all were hit next session (before the last visible on the chart).

I've put 15 pips trailing stops which was hit on the next session beginning assuring 70pips profit.
Nice end of the week

Gold 15 Nov

Not so lucky with gold today.

Entry was in the Zone after 2AC signal was triggered (line #1). Signals inside alligator are not reliable so I moved stops up as soon as possible. This didn't help me much and few session later stop was hit (line #2) producing a loss.

GBPJPY 13-14 Nov.

Yesterday (13th) GBPYPJ started a big green candle up - second DBar.
After this second DBar ended I decided to place a buy stop order above it.
It was supported by the green zone.

Next came 2AO above zero signal and the Zone itself, so I had 3 buy stop orders almost on the same level (#1).

Next signal was 3AO bars (#2) and balance line signals on the same level - both took on the next session.
I neglected Zone signals because of the strong move and the short distance to the gap.

Finally trailing stop was hit after the gap was closed - where it seemed a logical end of the trade.

Orders were active in the range 228.01 to 231.01 where was the exit. Nice move for 4 hours chart.

AUDUSD 12 Nov

The week AUDUSD 4 hours chart began with a gap taking the orders (position #1) from Friday.

At end of week there were a Balance Line and AO Zero cross signals.
Next sessions offered few more entry points (#2,3,4) and a straightforward move.

Only entry #4 was questionable because of the DBar and the distance from the alligator.
Anyway I decided to enter and tighten the stops at order #4 break-even.

As expected stop loss was hit and trade was closed.

Very furious beginning of the week.

EURUSD 5-11 Nov 2007

EURUSD - clear up-trend this week. At the beginning we had some consolidation.

Point	Description
1	BL buy stop hit 3 session later.
2	Zone order
3	up fractal
4	Long AO green series. Stops tighten.

The strong move offered straightforward trade easily following the move.

CADJPY 5-11 Nov 2007

4 hours chart
CADJPY offered excellent entry after consolidation.

Point	Descriptions
1	Consolidation ended. Last up fractal taken. I put order there because price was above alligator.
2	Stop Buy orders on AO & BL signals. Both taken. Ignoring Zone for the steep move.
3	Dbar. Stop loss moved below the load. Stop sell order placed. Both taken.
4	Red Zone
5	Red Zone. Big volatility. Stop loss tighten. Small Loss
6	All sell orders taken.
7	BL sell stop order. Taken during next session. DBar. Stops tighten,
8	Stop loss taken. Ignoring DBar.
9	BL sell stop order. Steep move. Keeping stops tight.
10	End of week. Closing all trades.

This pair offered an excellent profit.

AUDUSD 5-11 Nov 2007

AUDUSD 5-11 Nov 2007

Here is how AUDUSD trade was developing this week:

Point	Description
1	Retrace (last 4 red bars) ends and price hesitates around alligator.
2	Up fractal is taken and move stops for 2 sessions. Still not clear where are we going.
3	AO signal taken. Move is up. Alligator opens. I've ignored Zone signals because of the steep move.
4	1st DBar appears. Stop loss moved below the low. Sell Stop order placed. Two bard later stop loss taken. DBar fired. A new DBar formed
5	2nd DBar is taken. Trade is against the trend. Strong down support in Momentum and Acceleration.
6	This is why I've added a Zone sell order - taken later.
7	Session failed to break down alligator's line so stop was tighten and later taken.
8	Down move stil valid so BL sell stop placed and moved below each bar's low. Taken.
9	Zone sell order
10	Zone sell order
11	End of week. Closing all the trades.

Total 572 pips

CADJPY trade Oct 29 - Nov 2

CADJPY offered a good opportunity to profit from Chaos trading method.

I've placed four orders: 3 on fractal breaks and one on 2AC signal.

During the orders price didn't touch the red line even for a test. This was a calm trade offered a nice profit.

AUDUSD trade Oct 29 - Nov 2

Nice sample applying Chaos trading method. On the chart are seen
2nd and 3rd Elliot Waves.

There were 3 long orders made: 1st was on fractal break, the others were balance line breaks. Though all the time price didn't break read line, because of the long up bars line, stop loss was tighten.

2nd and 3rs orders were closed after forming a DBar.

AUDJPY

Another nice trade offered this week AUDJPY.

After the retracement last up fractal was furiously taken. Move was supported by strong acceleration. Momentum failed to cross down the zero line. The strong up move stopped for a while forming a divergent bar (never taken).

I didn't use the next up fractal because of the strong decline in acceleration. A little big later the move stopped and trailing stop was hit.

Generally we've got here a nice move (from little above 100 to 101.34) and both signals almost double the pips.

GBPNZD

Unexpected (for me) GBPNZD offered just before the week-end a nice move allowing even to double the pips.

Alligator was showing a beginning of a small down trend. Price formed a down fractal. Acceleration and Momentum were still sleeping.

Following the rules an order below the fractal was placed followed by another order below the Balance line signal two bars later. Both stop-loss were just above the red line.

And just one session later - bang! - a nice down move of 197 pips.

Both order were fired and just I was thinking that this is the big move... trailing stop was hit for my regret.
A little bit later market confirmed for still another time how important is the use of stop loss...

From these 197 pips 314 pips profit were gotten ;-)

AUDNZD trading

Second pending order was not hit.
Instead stop loss was.
1.17 level break failed and move is in the alligator now.

So it is better to stay out while market hesitates where to go.

AUDNZD - trading

Obviously the move will be into the alligator next few sessions, so it is better to stay away.

1.17 Level failed - perhaps it is too early for it...

Last up Balance line trade (in blue) was stopped and all orders have been closed.

AUDNZD - trading sample

This week along with great trading opportunities AUDNZD shows excellent sample of Chaos trading system.

First we had a nice trend - a constant up move without big volatility. The only thing trader had to do was placing order on each signal.

Orders for this series are marked in orange.

Numbers 1,3,5 are fractals; 2,4,7 are Balance line.

After the 7th order there was a down signal (3AO) and move reversed. Stop loss was moved some pips above 6th order and was hit during the retrace.

On the next up move there were 3 signals (marked in green) - 8,9 are Balance line and 10 is a fractal.

Trailling stops follow the move and on next retrace was hit. The same retrace formed Bearish Divergent Bar (marked in light blue).

Here volatility increased and was hard to decide the correct place of stop loss. I decided to keep it above next to Dbar bar and I was lucky to remain in the trade. In this Divergent bar trade there was another Balance line signal.

Still big volatility and stop loss was hit and Divergent bar was transformed into trend retrace offering an up Balance line signal.

Let's wait to see whether 1.17 lever will be broken up again...

Wisdom

Wisdom

I read a paper without a title nor an author or whatever notice where I've got it. It throws around for some time and today I've decided to read it finally.

And I found few sentences that each trader must hammer on the screen keeping one of the eyes on it all the time trading.

Here they are:

• The first, biggest and worst enemy of any trader is its own opinion about where the market is going.
• The next biggest enemy are opinions of friends/brokers about where the market is going.

Simple!

Yesterday setups

AUDCHF and EURAUD Divergent Bar Setups formed yesterday lost steam and turned into a range.
After two long bars moving forces lost interest and last two sessions are drifting around.

Nevertheless momentum and acceleraiton are still on the same side, trading against the trend is always dangerous.
Finally tighten stops were hit and trades - closed.

There is still possible the move to continue in DBars direction, but until price is into the Alligator's lines trader must keep his eyes well open ;)

AUDCHF Bullish Divergent Bar Setup

Like EURAUD, 4 hours chart of AUDCHF formed also a Divergent Bar setup - a Bullish one.

We have again something near to Double bottoms but here we have a clear divergence between price and Momentum.
Acceleration, compared to previous move, was weaker.

Divergent Bar break up was strong and fast and if 1.0250 level is taken we could expect testing the 1.0370 level next.

Anyway, keep stops tights for this move is against main trend and easily could be transformed in a retracement...

EURAUD - Bearish Divergent Bar setup

After the peak two days ago, EURAUD made another one on 4 hours chart forming a new Bearish Divergent Bar. This Dbar is supported by the Tween Peaks formation in Momentum and a nice acute angle.

Acceleration is also much less then during the previous rally

This is a good chance to go short with a nice profit horizon if there is no unexpected news around.

GBPCHF - Bearish Divergent Bar setup

Early in European session GBPCHF on 4 hours chart has formed a Bearish Divergent Bar.

If there are still opened long positions - should be closed. Last bar has closed below the pink line which is enough reason to exit.

Those entered market on the short side are already on a safe territory. Bearish Divergent bar has shown significant angle and acceleration is slowing. Current session turned momentum also down.

So be prepared to take the next signal.

AUDNZD Daily - Bullish Divergent Bar setup

As seen on the chart there is a Bullish Divergent Bar forming today.
The steep down move last two days failed to break down the 1.09 level forming Double Bottom
At this point forces seem to be balanced and momentum and acceleration are gravitating around the zero.

Let's see what will be today.

GBPAUD Bullish Divergent Bar Setup

GBPAUD 4 hour chart is forming a Bullish Divergent Bar Setup. The acute down move formed strong divergence with the Alligator's mouth preparing next setup.

During the last two sessions, price failed to break down the previous Bearish Fractal forming this way a Double Bottoms.

This Bullish Divergent Bar is supported also on Daily chart where is visible again Double Bottoms and strong divergence between Momentum and price.

EURNZD Bullish Divergent Bar Setup

During Asian session EURNZD has formed a Bullish Divergent Bar Setup visible on the chart.

Acceleration is slowing during last 4 sessions which results in momentum change.

Long though the down move failed to break support around 1.73 level forming a Bearish fractal.
All these formed a Double Bottoms formation. Price is significantly down to Alligator's red line.

The chart shows us a valid Bullish Divergent Bar.

Take in mind that Divergent Bar is a signal for change in direction but there always might come some news confirming main move (down in the case).

So keep your eyes open and be ready to act.

CADJPY - Stop Loss hit

Story that has began here ended now.

Bullish Divergent Bar trade developing last few sessions ended with a nice profit.
Up move offered at least three entry points (marked in green). During Last session price entered into Red Zone and Stop loss was hit.

Exit is supported by the bearish Divergent Bar formation.

So look carefully and be prepared to act according to market move...

CHFJPY - Bearish Divergent Bar setup

Bullish Divergent Bar from yesterday seems to be at the end.

Signals about that are acceleration, going up and down, the new Bearish Divergent Bar formed previous session.

If last Divergent Bar turns out into a down move, it is possible to get a Head & Shoulders formation.

Tighten stops and place stop orders accordingly waiting market to decide which direction will go.

EURCAD Bearish Divergent Bar Setup.

Similar to CADJPY EURCAD formed a Bearish Divergent Bar setup, supported by acute angle and slowing in Acceleration.

Orders are set.

Waiting...

CADJPY Bullish Divergent Bar

After some hesitation around 114.40 level it seems that Bulls successfully turned up the momentum.

The trial to break down the Bullish Divergent Bar failed, forming a Bearish Fractal.

Buy stop order has been fired after the acceleration turned up and issued a 3 consecutive green bars buy signal.


Forthcoming is to see what will be on the Asian session.

USDJPY - a nice trade

USDJPY - a nice trade

There are two Bearish Divergent bars visible on the chart. They did not seemed credible enough for me so I missed orders and place them below the Bearish Fractals bunch somewhat lower.

Currently price is testing the last Bearish Fractal - in case of down break a very nice profit will get ;-)

Let's see...

CADCHF Bearish Divergent Bar

Here is the chart.

There are two Bearish Divergent Bars (with Bullish fractals on the same bar).

Forming an acute angle though, I was not much confident that these bars will offer a good trade.

But rules are rules and must be followed!

So I've placed orders above and below these bars and latter were taken soon.
The last Bullish fractal had almost taken the stop loss but fortunately "almost" and I've remained in ;-)

There were some Red Zone entries and now looking whether 1.142 level will be broken down...

Two nice new setups

AUDCHF

After the strong rally previous sessions we have two Bearish Divergent bars formed and Bullish Fractals at 1.0520 level were not taken.
Divergent bars are supported by long up move 8 green bars in Momentum and acceleration slowing.
Previous session has been traded in small range so there is an opportunity for a short entry with small risk.

EURAUD

Here we have a Bullish Divergent bar setup.

Bearish fractals at 1.5780 level have not been taken, but Bullish Divergent Bars were formed.
Again support in Momentum - 8 red bars and slowing acceleration.
Again small range and an opportunity for long entry with small risk.

GBPCAD - furious diving

GBPCAD offered a classic Divergent bar trade. Rally formed Bearish Divergent Bar, taken almost immediately.

Then we had some time to think about our strategy while market was moving in range. Ranging it formed a double tops with two Bullish Fractals, not taken.

There was a deep diving taking all sell stop orders offering to increase out profit in times...

EURCAD trade

Here is how EURCAD trade is developing this week.

A short order has opened below the low of Bearish Divergent Bar, taken on the next session. Stop loss survived during the next rally which finished forming a new Bullish fractal (never taken) and 3 red Momentum bars offering a new short entry point.

The strong up and down moves during these sessions ended into a small range while seaming power for the next move.

During this range two type of orders have been placed - stop & reverse long orders above Bullish fractals and new short stop orders below the Bearish fractals.

Latter were taken in a furious diving. These few sessions fall in the Red Zone with great opportunity to add new orders to the trade without almost no risk.

Current session is gravitating around the fresh Bearish Fractal and possible Bullish Divergent Bar. Possible because 78% Fibo level is around and the diving slope is too much acute.

So from here forward we place a sell stop order and a buy stop order, tighten the stops for the open positions and let's look where are we going...

EURUSD - Bearish attack failed

Already a week EURUSD is gravitating around 1.3450 level. It is visible on the chart that bears have been more active that bulls and their attacks gain strength and each new one is stronger than the previous.

Currently it seems we are in the next unsuccessful bull attack, which breaking the 1.3475 level though, lost steam. Because of the support of Acceleration and Momentum the chances for an up move are sill valid, but keep stops tight and eyes open for the next move.

EURJPY Bearish Setup

There is here an interesting Bearish Setup on 4 hours chart.

It started with a Bearish Divergent Bar here price drifted around for few sessions allowing to place sell stop orders.

Divergent Bar was taken furiously and our stop loss was checked but not taken while 3 red Momentum bars were formed offering a new short entry.
Meanwhile a Bearish Fractal was formed showing us where the next sell stop order should be placed. Both orders were fired in a short period.

This setup was supported with the divergence between the price and momentum where Tween Peaks signal was formed.

Now price enters into a support area around 165.50 level. If broken down there will be a nice profitable opportunity.

USDCAD - Divergent Bars on a ranging market

Here is a nice sample trading divergent bars when there is no trend

Signals and entry points are market in orange; Exits are in red.

Currently a new bearish divergent bar is forming...

False signals

False signals

Here I'll try to summarize the move in EURUSD 4 hours chart registered in last three days.

Here is the beginning - Monday 18th beginning of the European session. After the strong rally on Friday moving the price far away form the Alligator's lines and creating an acute angle we have slowing Acceleration resulting in Bearish Divergent Bar formation.
Two hours after the US session open. Bearish Divergent Bar was taken easily by the steam accumulated in the Friday's rally. Angle is closing; Momentum is down; Acceleration continues slowing. A new Bearish Divergent Bar has been formed.
Next day (19th) beginning of the European session. Again Bearish Divergent Bar was taken; move continues up but losing steam. There is almost no Acceleration. Attempt to break up 1.3430 resistance failed creating next Bearish Divergent Bar which is an outer bar in the same time
Same day - just before US session open. Outer bar is growing; Bullish Fractal is on the way. Momentum passes to negative territory (down) Price is hesitating between 61.8% down Fibonacci and 38.2% retrace Fibonacci. If there are still open long positions - they must be closed here because we have to bars closing below the pink line. If there are short open position - wait to continue down or close them at 1.3440 break up. Alligator is going to close so be careful - prepare to exit all trades.
Today (20th) before European session open. Double top formation and next consecutive Bearish Divergent Bar formation. Price failed to take Bullish fractal. Acceleration and Momentum are up after market takes breath. Looking for today development

EURUSD - few sessions later

Previous post ended with:
> Be careful because the support on daily chart for this up move is strong and this DBar could turn to a false signal easily...

Let's look on the current state of the 4 hours EURUSD chart - just at the beginning of US session.

From Friday there was an excellent entry point when all three Bullish fractals were taken.


The European session started slow (but up supported by the up move on the daily chart ) accelerating and offering another entry point at the high of the Bearish Divergent Bar.

The next step is to take the resistance at 1.342 with might turn out to a nice rally.

Keep your eyes open.

EURCAD Bearish Divergent Bar setup

What is different between this Bearish Divergent Bar setup and the same setup formed on EURUSD 4 hours chart today (look here and here )?

Here we have very strong Acceleration pushing up the Momentum, but Alligator is asleep and Friday spike up had just awaken it.

This is dangerous because once up it might start hunting and will take away this setup. We'll see in the coming few sessions.

EURUSD - new setup

EURUSD continues to offer good trade opportunities (beginning is here ).On Friday we had a furious break up taking the Bullish fractal. It was so king to retrace for those missing the entry point...

Such large moves often form Divergent bars and so does EURUSD.

Be careful because the support on daily chart for this up move is strong and this DBar could turn to a false signal easily...

EURUSD - time to close

Almost a week of nice trading session has ended. From yesterday Alligator is going to sleep (at least a while). So if there are still open positions - should be closed.

On the 4 hours chart is visible the beginning on 6 June. The 1st entry point is a little below the fractal because the change of direction was almost immediate and this fast move surprised me.

Few sessions later there were formed two Bullish Divergent Bars which seems not valid because of the lack of any angle between candles and alligator teeth - so I've ignored them. Instead a new short entry was fired on the Divergent Bar stop loss line.

There were few more entries in same direction marked with green. Sessions after the third entry were torn by anxiety whether the move will continue. It was obvious that the move is coming to its end.

Exit - marked with red - was on the second close above link line - when there was obvious that a new channel is forming.

So what's next?

It seems that there will be a correction. This is supported by the daily chart where a Bullish Divergent bar is visible and seems to be a valid one.

Be prepared and we'll see.

EURCHF re-tests Head & Shoulder's Neck line

Yesterday rally (look here ) kicked all orders out in its attempt to attach right shoulder. The attack was short and weak and turned out into a range.
Down signal are still valid Momentum and Acceleration are still in Red Zone and both are down, but let's wait to see who will win this battle.

On daily chart is clear visible how hard this neck line is :-) It is also visible that Alligator is going to wake up...