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Fellow Demons
Calling all fellow Demons.
We liked the retracements to start this morning an once again, I was left standing on the sidelines watching GBPUSD drop whilst eagerly watching USDJPY do nothing but give me the run around.
Very well traded by G-Man. Great snap-shots and well timed on the cable.
You must have been going grey after 2 hours in the Yen
Whilst I am here I am going to show you how I like to play the reversal.
Now, to begin with the pair must have had a big run. Easily identified on the 15m chart by the distance between the 60m 20&50 and the 4hr 20&50 PLUS the CCI336.
To go one better look on the 60m chart. You then see the distance between the 20&50 from the 60m 4hr AND daily.
In the case of the JPY its quite large.
This is what I am looking for from my chart when trying to catch a reversal early on, with minimum risk.
I have numbered the stages so they should be relativly easy to follow.
Step 1 - This is where my price action and 7ema fall through my 15m 20ema , try to bounce back up but find the 20 now as resistance.
First indication something in the pot is brewing.
Step 2. - The 15m 20ema crosses the 15m 50sma. Remeber that these two now are in correct order to act as the double-edged sword as resistance.
Step 3. - Price tests this new found protection, but fails to break. Notice 7ema always remains below.
Step 4. - Price action AND 7ema eventually break the 60m 20ema. A good time to start taking a closer look at the 5m chart
Step 5. - 15m 20&50 starting to cross 60m 20ema. Price retraces and now finds 3 layers of protection where there were just 2 a couple of hours previous. Notice again the 7 always stays below the resistance m.a's, which are now all starting to head down.
This baby is gonna go !
Step 6. - Once in the trade the 60m 20 crosses the 50 confirming the downward move.
Notice the 84 CCI is down. The 336 is up. On these occasions it is possible to play to the 0,0 line or thereabouts on the 336..
Does that clear a few things up ?
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There's one set at 6:30 UK time for London and one at 12:00 for U.S session, plus I will send a summary video after each session 
Last edited by FX Pimp; 07-25-2008 at 06:39 AM.
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