You're welcome! And questions, comments, and ideas welcome too, of course

Islander and Medici trade the European open

Here: http://www.forexfactory.com/showpost.php?p=3931637&postcount=1810

Islander and Medici trade the European open

Interesting from ForexLive: Large buyers emerge in cable around 200-day MA It seems that there was some significant buying interest in the cable when it fell to 1.5500 early in the European session yesterday. At least 3 high-profile names, 2 ...

Islander and Medici trade the European open

Thank you for preparing and sharing that. Illustrates the difference very well. Rather striking isn't it!?

Islander and Medici trade the European open

Exactly the way I see it!

Islander and Medici trade the European open

It's only for a few weeks, and it's still work in progress. So research will continue. But it seems a good strategy to only take trades that are confirmed by CI divergence, and to hold on for a while. See attached chart. Almost a stop-and-reverse ...

Islander and Medici trade the European open

This is developing into the Composite Index Divergence thread... And 50 people have now downloaded the indicator.

Islander and Medici trade the European open

Good point. If you compare EUR or GBP with SPX, with which they are clearly correlated, you can see that after making the low for today, SPX makes successive higher lows whereas the currencies mentioned make lower lows - squeezing as much profit out ...

Islander and Medici trade the European open

Agreed. At the same time, there's usually the possiblity of holding on for a while longer. Today's swings have, again, been from divergence to divergence. Requires apatience pill, though

Islander and Medici trade the European open

The 38.2% level being re-tested now...

Islander and Medici trade the European open

Great stuff! Thanks for sharing. That 5575 level is actually the 76.2% level of the current range, so you could have entered there.

Islander and Medici trade the European open

Equities — Just in case anybody hasn't noticed what is happening in the equity markets, here's a chart showing that SPX is bouncing between Fibonacci levels of last week's range. Yesterday's high was the 50% level, and today's high and low the ...

Islander and Medici trade the European open

So do I. I think it is harder. But CI divergence on M5/M15 shows the way. And then 1min HL/LH to be on the safe side.

Islander and Medici trade the European open

I didn't Took it off the 1min. I find that LH/HLs work best there if you want to get in early. You've obviously had better days, but no worries, there will be another day. I am staying around for a while - just for the possibility that the ...

Islander and Medici trade the European open

Here's more from the research lab on the topic of trading the European morning. The H1 chart shows reverse CI divergence, and the 1.2930 support level, where the buying spree started yesterday, is readily identified. CI reverse divergence says ...

Islander and Medici trade the European open

Thank you, that's very helpful. My own approach, as you may have gathered is to look at higher time-frames (H1, H4) for S/R levels and let CI confirm them. Then I want to enter at the level. So in your case at the very bottom before the HL. ...

Islander and Medici trade the European open

You're welcome, and that's good to hear. Would you mind sharing how you use it - apart from the obvious divergence, how do you time your entries?

Islander and Medici trade the European open

CI divergence signals that the swing is over at the 38.2% level of the 1.2196 to 1.3334 range. A short I took for 10 quick ones.

Islander and Medici trade the European open

Here's a thought: While CI+BB may be a good tool for timing entries for intraday swings, perhaps CI on the 15m can be used for session direction.

Islander and Medici trade the European open

Well, here's a chart. The Bollinger bands are 100 minute ones, corresponding to 20 minutes on the 5min. Note also the session fibs.

Islander and Medici trade the European open