I'm pretty sure I already posted this image somewhere... one of the final pieces of my culminating puzzle. But, I can't find it anywhere. So, rather the search and search, I'm just going to post it again here. Then I can also go ahead and store it in a laptop file somewhere so my computer's desktop isn't quite so cluttered...
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When the lower panel measures indicate that the slope of the one-hour baseline (the green histogram) and the slope of the 15-minute baseline (the purple histogram) are both angled in the same direction AND the position oscillator pops to the opposite side of the price anomaly channel, you have a potential setup for purchasing a Deriv.com 15-minute binary option contract in the direction of the trajectory of the two corresponding trends.
Another potentially profitable scenario for entering positions is when the the 15-minute histogram crosses the center of the price anomaly channel from the side opposite that of the one-hour histogram to the side corresponding to it.
And a third scenario is if BOTH histograms cross over to the opposite side of the price anomaly channel simultaneously.
And yet another possible setup worth considering is when both histograms are above the threshold level (the white dotted line) and you observe the formation of a "miscolored" candlestick.
Another potentially profitable scenario for entering positions is when the the 15-minute histogram crosses the center of the price anomaly channel from the side opposite that of the one-hour histogram to the side corresponding to it.
And a third scenario is if BOTH histograms cross over to the opposite side of the price anomaly channel simultaneously.
And yet another possible setup worth considering is when both histograms are above the threshold level (the white dotted line) and you observe the formation of a "miscolored" candlestick.
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I'm planning to upgrade the hotspot data plan I have with T-Mobile this week, which I hope will fix the above problem. Though it took a long time, I was able to finally open the Deriv platform this morning by 4:50 AM Pacific Standard Time and foreign currency pairs were already available for trading. So, perhaps the service provides access to such instruments at the start of each week by at least 4:30 AM PST, if not earlier.
Up to this point, the style of trading I've employed when trading Deriv.com binary option contracts has been to "go with the flow." However, this means constantly reversing direction, as illustrated by the following AUDUSD 15-minute chart...
Particularly irritating is the scenario marked by the red star. There I expected price to turn south and I acted accordingly, purchasing a binary option put contract. But instead of reversing direction, the rate went neutral. It didn't REALLY turn south until about 15 candlestick later—but then it turned north just three candlesticks after that, and then FINALLY made the significant descent downward that I was expecting to see approximately five hours earlier!
It would be my preference to avoid having to make these constant reversals up and down, and toward that end, I am abandoning the "go with the flow" style of trading and testing an approach based on the trajectory of the four-hour price range.
The idea is to buy contracts when price is at the bottom of the range whenever the directional tendency of its course is upward, and sell contracts when price is at the top of the range whenever the direction tendency of its course is downward. This will probably mean scheduling expiry at a minimum of two hours and possibly as high as four to twelve hours. (Based on the trades suggested below, three or four hours seems just about right.)
Had I been using this methodology already, I would have purchased AUDUSD binary option contracts during the last two 24-hour market cycles at the points indicated by the circles printed on the chart above. (As I was thinking about this, it occurred to me that this strategy would also be ideal for deciding when to purchase Nadex knock-outs.)
If price refuses to pull back significantly, I might entertain other options (setups) such as when candlesticks venture to the "far" side of the two-hour baseline, etc. Trades would occur much less frequently than when "going with the flow," but if they are almost always profitable, then the stakes could be raised accordingly, such as two trades per asset per day worth $50 each vs. ten trades per asset per day worth $5 each.
Particularly irritating is the scenario marked by the red star. There I expected price to turn south and I acted accordingly, purchasing a binary option put contract. But instead of reversing direction, the rate went neutral. It didn't REALLY turn south until about 15 candlestick later—but then it turned north just three candlesticks after that, and then FINALLY made the significant descent downward that I was expecting to see approximately five hours earlier!
It would be my preference to avoid having to make these constant reversals up and down, and toward that end, I am abandoning the "go with the flow" style of trading and testing an approach based on the trajectory of the four-hour price range.
The idea is to buy contracts when price is at the bottom of the range whenever the directional tendency of its course is upward, and sell contracts when price is at the top of the range whenever the direction tendency of its course is downward. This will probably mean scheduling expiry at a minimum of two hours and possibly as high as four to twelve hours. (Based on the trades suggested below, three or four hours seems just about right.)
Had I been using this methodology already, I would have purchased AUDUSD binary option contracts during the last two 24-hour market cycles at the points indicated by the circles printed on the chart above. (As I was thinking about this, it occurred to me that this strategy would also be ideal for deciding when to purchase Nadex knock-outs.)
If price refuses to pull back significantly, I might entertain other options (setups) such as when candlesticks venture to the "far" side of the two-hour baseline, etc. Trades would occur much less frequently than when "going with the flow," but if they are almost always profitable, then the stakes could be raised accordingly, such as two trades per asset per day worth $50 each vs. ten trades per asset per day worth $5 each.
In fact, I'm taking this a step further and testing an approach based on the trajectory of the eight-hour price range.
I'm satisfied that my charts/system have arrived at a place where they are providing definitive analyses explaining what's happening in the Forex market, so I am now turning my focus to the task of shifting from operating as an independent retail trader who trades the London session whenever he just so happens to wake up in the middle of the night to more of a set routine with a standard process to be followed.
I started by creating the chart below, to be filled out 15 minutes before the hour, every hour, to be used when deciding (five minutes before the start of the next hour) which one-hour binary option contracts to purchase via the Deriv.com platform.
I started by creating the chart below, to be filled out 15 minutes before the hour, every hour, to be used when deciding (five minutes before the start of the next hour) which one-hour binary option contracts to purchase via the Deriv.com platform.
In the end, I settled on an approach that has the two-hour baseline as the maximum time frame regularly taken into consideration in deciding what to do from a day trading perspective. Other key measures include one hour along with 30, 20 and five minutes. When it comes to one hour, the location of candlesticks within the price range is just as important as the baseline. When it comes to 20 minutes and five minutes, the position of the candles within the price range is more important than the baselines.