Yeah, was definitely insane...especially how the gaps backed right into the highs/resistance...you can't really ask for more.

I'm usually unable to put size on my gap trades because of the need to have wide stops/wait times on closing. This was obviously not the case last night.

Stars-aligned setups like these are rare though...I don't remember the last time we saw such a locked in Sunday gap setup, not to mention quick close (<12 hours).

Yea i agree, was a nice and rare way to start off week. I usually scale back my positions 50% on gap trades for the same reason as well. And could you post the chart of where u entered on this trade as well. Just want to compare to my entry. I entered at 1.2628 around 3.5 hours after the open on sunday on the retrace after it broke where the gap opened.

Sure thing, I'll take a screenshot from my Oanda platform later tonight.

The EU TP was set just above the gap close but I left AU on for a bit longer (hit a couple of hrs ago).

Nice work. Now back to the tough trades.

The gaps I traded last night...as posted earlier, I'll put up screenshots of my entries later today.

My two gap trades, entry & exit marked w/red circle.

Nice read

My favorite part of this thread though is $uper trying to claim that turning 8k into 250k in a matter of weeks isn't a big deal.

haha, I'm shorting it (opps).. more of a longterm play since I think it'll go below 54 eventually (and holding it pays interest anyway). I have been looking to take profit around 54.8 normally.

Sure, if you're getting paid to hold as per your long term views, I see nothing wrong with that. You can see, as it's been knocking on support, it surely could bust and you'll be getting paid both ways.

GL.

The EURUSD has enterted into an asymmetrical triangle. This should, technically give a direction for future price depending on what side of the triangle price breaks out from.

Yes, been a very dead week for me after Sunday.

As you said, just waiting for some direction.

AU coming up, looking for a long around 1.0

Also, looks like it might be another crazy gap weekend...Oanda sending out notices of a late open Sunday.

"Due to the extreme volatility some market analysts foresee could result in the coming days, OANDA fxTrade will not accept any trading activity from 6:00 AM EST until approximately 3:00 PM EST, on Sunday, June 17, 2012. OANDA believes the convergence of a major market event during off-market hours represents a potential trading risk and has taken this rare step to protect traders from excessive rate fluctuations.

Please note that during this halt in trading, you can still access your account details but no trading activity will be accepted. For this reason, OANDA strongly recommends that all traders consider minimizing currency exposures prior to the trading halt.

If you do intend to maintain open positions during this period, be aware that OANDA will hold exchange rates steady during the trading halt. However, when trading resumes, rates will immediately adjust to the current market rate and it is possible that the updated rate could result in a margin closeout if the price has moved significantly against your positions. Therefore, it is your responsibility to ensure you have adequate funds in your account to prevent a margin closeout.

OANDA apologizes for any inconvenience this may cause.

For more information, please contact a Customer Service representative.

Best regards,

The OANDA team"

The AUD trading has nothing to do with technicals. How do you factor that into your trading thought process?

I don't concern myself with what moves the Aussie or any of the pairs I trade. My trade is based on the broken resistance that has now turned to support.

AUD already bouncing of the previous resist, now support.

Cheers.

Rolling along

A setup that was just passed on to me...UJ, very obvious level.

Nice one! Great trade

It was a very solid week.

Some great setups coming next week, I'll get the charts up later.

Kicking things of with the Sunday gaps, I'm short EU and will add as the spreads lower

Does anybody remember magic eye posters? In the 90's, at first, I remember not being able to see the 'dolphin' despite others doing so easily. I feel the same way when I read about technical analysis. Although I concede that because some of the authors I read seem credible(Peter Brandt) I can't really say that there's nothing there.

One question that's come up in my current research is does technical analysis work in new markets? When I look at the revenues of new market companies I've developed models for revenue behavior over time in relation to their product or service strategy. However, when I look at the stock prices of the same companies the evidence is that they're being subjected to technical analysis type thinking. I have a working test that this will lead to large losses for technical traders in markets where the past doesn't matter because either a new technology or new business model has been employed. It seems like traders are 'multi-tabling' these new markets like past markets and don't really know business strategy(and thus struggle) with the new. Any TA trader had success trading new market stocks or emerging currencies?

Setups I'm watching this week







In pretty heavy with the gaps now, we'll see if this weekend fundies will hold.

Tech trading is such a broad topic...what do you consider technical trading?

The market trades at certain prices...charts reflect these prices. Thats all it is. So if I draw a line over a certain price point that has shown previous action, is this considered technical trading?

For example, EUR/USD cannot break 1.30...for whatever reason, every time price falls down to 1.30, some huge institutional buyers come in. Banks have a hard on for this level. Bottom line, big money protects this level.

So I come in, I see this & I draw a line. That's my support. I will long the next run down to 1.30 anticipating a bounce and I will short if price breaks (thus signalling all of the previous orders protecting the 1.30 level are used up).

I appreciate all the views & comments.

UJ is live...already seeing the reaction per the norm - just would like some follow through.

Think about it this way, if $1 million worth of volume at a given price which then goes up, let's say 1.5555 in a currency future and the average volume at that price is $10k. If the market returns to that level there are a lot more people who were either in a great profitable trade and now breakeven or just got unstuck from being down a lot.

Obviously, that level is important because money/people react very consistently when they are in pain. Now expand that kind of thinking and you have tech trading.