Best posts made by JayPhillbrooks

Here’s a setup that I briefly touched on in a previous post. This will be the second time I’m taking an entry with this setup. I’ve actually missed a handful of them due to computer issues so I didn’t catch them live. This is a rare instance and the type of setup that I see as a lucrative opportunity. I believe that CAD/JPY is at or nearing a turning point before upward momentum come in. I entered at 106.253 with a small position. On this version of the DmRO indicator is the ability to overlay another instrument. The feature isn’t 100% perfect for every instrument and can be buggy but overall after a lot of cross referencing and filtering out what works and what doesn’t, it’s a pretty handy feature. A handful of currencies just aggressively pushed up namely EUR and GBP currencies. Though my bias is short on them, that doesn’t mean that I’m shorting now. That opportunity may come weeks later. But what I am looking at is how CAD/JPY is interacting with GBP/CAD and EUR/AUD. CAD/JPY which is represented in the orange moved down as certain EUR and GBP pairs pushed up. I am expecting a repulsion with CAD/JPY going long and some EUR and GBP pairs likely stagnating sideways. Just because one pair puts in a trend, that doesn’t mean that an inverse pair will put in a trend in the opposite direction. Maybe they could go short from here but from past experiences, it never worked out for me shorting into aggressive movement like this. For GBP/CAD, I’m looking at CAD/JPY vicinity to the blue tracer. For EUR/AUD, it’s very near the red negative tracer which is the strongest signal for this setup. The actual price line can be used as well. These lines can break through each other and continue but that’s a very rare scenario so I look for either pinching or some intersecting before reversing. Also it depends on if I have other analysis that confirms my bias which in this case I had other reasons to be long on CAD/JPY. This method assist with timing.

Here's a template that I still use. This helps with risk. If my analysis is wrong or mistimed, this is where I want to be invalidated at. I can always give it another shot later.

Here’s a look of the DmRO indicator when applied to indices and metals. I don’t focus much on indices and metals but there are opportunities that can be spotted from time to time and I believe this may be one of them. Looking at XAU/USD, it’s been a bull market for quite some time. One should be very cautious of shorting all times highs and possible squeezes up but I believe that there is a time and place for everything. What ‘’should and shouldn’t’’ be done when it comes to trading the markets is entirely dependent on the trader when it comes to strategy, edge, and risk when it comes to tolerance and how it’s managed. I don’t view all trends or phases within trends as the same. In this situation I am more willing to short gold. That doesn’t mean that I expect it to fall from here. I prefer to see it climb up more and pyramid shorts into bullish volume over a period of time. I will not go heavy while expecting a drop. I will enter small and manage risk so that if I’m wrong, the losses will be very minimal. This is more so an opportunity to long the SNP and WS30 for a long term entry. 5 out of 5 of the previous interactions within the indicator throughout this current year were opportunities to get in with the April drop being the most extreme. This is my idea for an entry based purely off that probability.