FOREX PRO Weekly May 23-27, 2011

Hi Mili,
In my opinion the bigger the time frame the better DRPO works! I did go long on a 30 min. DRPO thought, with a 1.41 target...

Dear Venelin

I agree with you with regards to the time frame. However when it comes to reversal Sive always mentions to look at lower time frames hence I was surprised that he did not mention that.

I may go long after some retracement.

Thanks
Mili
 
If it is-now we wait next hour to close above 3x3 and enter long -stop 3/5 ?

Dear Sive

You mentioned DRPO Buy on 1 hr timeframe but what about 30 mins... It looks possible there too.. Infact on this one the close above and below are done. Only close above is left which could happen in the next couple of mins.

Thanks
Mili

Hi Mili,
In my opinion the bigger the time frame the better DRPO works! I did go long on a 30 min. DRPO thought, with a 1.41 target...

Hi Guys,
Speaking "hourly" I just want to attract your attention to this pattern. And looks like that was successful :)
 
EUR/USD Daily Update, Tue 24, May 2011

Good morning,
although market is showing some bouncing from 1.40 area, it still unclear, does it do it due support, or here is some reversal potential also.

On daily chart we see triple support - Fib weekly Confluence, pivot support 1 and target of recent AB-CD. Also we see some attempts to go lower - below pivot support, but they have not been successful yet. Trend is bearish.

On 4-hour chart we see some kind of retesting trend line of ex-parallel channel, that we've discussed in weekly research. Trend is also bearish, but here is some allusion to MACD divergence.

The more important for us is hourly chart. Trend is bullish here. Yesterday we've pointed that there was DRPO Buy right at an area, that we've specified in weekly research - 1.40-1.4044. If you've followed our trading plan you probably have long position currenty. So, if you do - move your stop to b/e. My current position at 1.4013 and I move my stop to b/e. Why?
Because current move is blur. It could go and go, but it could be just AB-CD retracement of recent swing on hourly, who knows?
So, here is the conclusion:
1. IF you have long position - move stop to b/e and watch the movie. Our party will start if market will move above pivot. Only after that we can hope that probably this momentum trade has started;
2. If you're flat now - stay flat. It's too early to enter short and a bit late to enter Long
3. If you're bearish - watch for 1.4150-1.42 area. This could be just AB-CD retracement. If this is so - market should stop there and should not move above pivot. But If it will - do not enter short, because it could be point 1.
 

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Can someone tell what the meaning DRPO ? and how to read it in agraph ?

-Thank You-

Hi Jimmy,
I suggest you to see some videos from archive:
For istance, this one for clarification of Bread & Butter trade (B&B):
https://www.forexpeacearmy.com/fore...51-aud-usd-daily-video-october-20-2010-a.html

And this one for Double Repenetration, i.e. DRPO:
https://www.forexpeacearmy.com/fore...62-aud-usd-daily-video-october-28-2010-a.html

Although they have been explain for "sell" signlas, I think you could make the same rules but for "buy" signals. Use as example our hourly chart for DRPO "Buy" on EUR.
 
3x3 SMA

Hello Sive!
I cannot find any reference about the price that you use for SMA. Is it the CLOSE price? Most of the times using different price gives different results and I cannot say if it is DRPO or not.
Thank you!
 
Hello Sive!
I cannot find any reference about the price that you use for SMA. Is it the CLOSE price? Most of the times using different price gives different results and I cannot say if it is DRPO or not.
Thank you!

Hi Pragmatic
It has to be close price.
 
B&B sell?

Sive,
Looking at the daily it seems a B&B sell materialized with strong resistance at 1.4114 on the spot. please look at my chart. I keep waiting as I have not seen great signal follow through. My problem is on the hourly which I have also included, seems to be a B&B buy there. what should you do at a time like this?
 

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Sive,
Looking at the daily it seems a B&B sell materialized with strong resistance at 1.4114 on the spot. please look at my chart. I keep waiting as I have not seen great signal follow through. My problem is on the hourly which I have also included, seems to be a B&B buy there. what should you do at a time like this?

Hi Joshnix,
I suspect, that this hardly could be B&B on daily - not enough thrust down. Besides, there was almost 3/8 retracement already.
On hourly B&B has been accomplished, during retracement to 1.40.
Now, market has reached Agreement on hourly from AB-CD and 3/8 resistance from high around 1.4350.
 
DRPO

Hi sive....

After looking at examples of DRPO's, I'm trying to put down some key points as a check list to determin wheather to take trades or not.

Would be very interested in some clarification on some of the points I've listed or corrections.

1 thrust, minumim 8 bars ( the more the better)

2 greater distance from the 3x3 better and as little consolidation during the thrust as possible

3 best if it devleops at major S/R and/or confluence

4 first penitration shallow (would you not take trades if the pentration is deeper than say .5 fib retrace?)

5 second penetration should be as few bars as possible from first penetration (what would you consider too many bars in a good DRPO? )
And would higher highs (or lower lows) in second penetration negate this in some small way?


6 price consolidation after a confirmed dpro can indicate a pending failure ?

7 you have mentioned that signals on lower time frames such as 1hr can lead to failure... would you take these only as confirmation in combination with other signals such as the example on the EURUSD yesterday?

do you often take the reverse position in a failed pattern?

Thanks so much for your continued efforts
P

in this example .. although it is coiling on daily, and this is 1 hr ... all that aside, would this qualify as a reasonable example ?

thanks again
 

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