The "FHR" Trades

[walterw 10]

Ok so here we go with the first trade that comes from our idea thread... This one has been developed from Don`s contribution on FHR and we are interacting here as this FHR (First Hour Range) gives as a lot of key information to play with...

 

Now let me give a word here about this FHR... This is the range of the Hour previous to the London open (we will also deal with asia open soon ) but to get started lets take London... so the Range High/low of the hour previous to London open is our FHR... Now when London opens we have this two clear levels wich actually mean a lot for the market... from here on many things can happen... but lets organize it into only TWO classifications : Momentum or Cycle as market has this two possible conditions... so here comes a very nice fact.... we can cycle or we can develop momentum in RELATION too this two levels... wich organizes our visualiztion of the market...

 

We will be able to have centrifugal as centripetal action here... we can scalp or we can look for long runners... we can even flip this levels... there is a great series of combinations derived from FHR + Cycle/ Momentum concepts...

 

So this being said let the discussion and more specific development of the FHR trades start... I know that at the end of this journey we will find a bright light of very interesting and straight forward setups to be implemented on forex... cheers Walter.

[Don4 10]

Ok walter, Like you said there are many different options we have here.In your opinion which do you feel is the best for momentum conditions Icon or Flip?

[Guest cooter]

 

Now let me give a word here about this FHR... This is the range of the Hour previous to the London open (we will also deal with asia open soon ) but to get started lets take London... so the Range High/low of the hour previous to London open is our FHR...

 

So, just to be clear here.

 

You are using the first hour of the European Open, which is one hour prior to London.

 

This means you are keying off the action from the rest of the continent via Frankfurt and Paris to give you direction as to how London will play out.

 

Correct?

[Don4 10]

Not direction just momentum.

[Blu-Ray 10]

Here's an indicator for any following along with Tradestation, it's an opening range indicator, which plots the high and low of the first hour.

 

Once imported, just adjust the start and end time to suit.

 

 

 

Walter/Don

 

On the example attached, there's a couple of nice bounces of the FHR low, just wondering what your using for to differentiate between cycle and momentum, are you using cci or rdx?

 

Many thanks

 

Blu-Ray

OPENINGRANGE.ELD

[Don4 10]

Here's an indicator for any following along with Tradestation, it's an opening range indicator, which plots the high and low of the first hour.

 

Once imported, just adjust the start and end time to suit.

 

 

 

Walter/Don

 

On the example attached, there's a couple of nice bounces of the FHR low, just wondering what your using for to differentiate between cycle and momentum, are you using cci or rdx?

 

Many thanks

 

 

Blu-Ray

 

 

Hey Blue Ray, As for me I will only be looking for momentum trades while trading the pound and maybe cycle trades during the asian session.

 

[Don4 10]

Sorry,momentum trades after the london and us session and maybe cycle trades during the asian session(for the pound)

[walterw 10]

Nice chart there Don... I like that integration of the icon for timing... cheers Walter.

[Don4 10]

Thanks walter, Not much going on now just setting around watching to see if either level can be broken. Since most of the news has been released(except for 2:15pm USD Interest Rate Statement) Today would be good day to watch for cycles. But anything can happen.

 

 

[walterw 10]

Yes Don, so far its being a cycle day as big traders are waiting for fed numbers, will be interesting to see with fed numbers how we switch to momentum and how timing should be handled...

 

I attach now Thre graphs of so far three concepts we can be looking into FHR : 1) Momentum FHR 2) Cycle FHR 3) Cycle Back FHR

 

 

cheers Walter.

[walterw 10]

Notice this Cycle backs... Momentum did not build so market goes back inside range and starts to cycle exactly on the FHR levels... cheers Walter.

[Don4 10]

Watching for possible Icon setup now.

 

 

[walterw 10]

Here I have a Cycle FHR and its FIbo Continuations...

 

 

The cycle was exactly on the test of FHR level , timing with cci -100 worked very nice... now after that succesfull cycle, we start to plot fibos retracements always starting from the fhr level to the max high pivot... the level between 50 to 61.8 is the only one considerd here... cci -100 again does the timing job... as we are not in momentum, scalper exits would be more prefered... cheers Walter.

[Blu-Ray 10]

Nice one walter

 

The pullback using the fib levels is very similar to the "Ambush Trade" that Hubert Sentors teaches via tradethemarkets.com, but I like way you have distinguished the timing of the cci with the fib levels, keep up the good work

 

Cheers

 

Blu-Ray

[notouch 10]

There's an old strategy called the Big Ben strategy which involves trading the GBP/USD breakout on the London open. As far as I can see it doesn't seem to work very well as there are lots of fakeouts and whipsawing during this period.

[walterw 10]

There's an old strategy called the Big Ben strategy which involves trading the GBP/USD breakout on the London open. As far as I can see it doesn't seem to work very well as there are lots of fakeouts and whipsawing during this period.

 

In this case FHR trades do not pretend to be breakout trades... the levels that FHR creates will organize a series of alternatives that go from cycle to momentum...

[walterw 10]

Ok walter, Like you said there are many different options we have here.In your opinion which do you feel is the best for momentum conditions Icon or Flip?

 

I didnt see this question before, so did not respond it... sorry for that..

 

Now as you already showed, the icon integration to this FHR context certainly its a powerfull one... in terms of "flip", I think it would be a complete separate alternative inside the FHR trades... it will be obviously in the centrifugal action cathegory, wich suggests momentum eventually... now, so far backtesting you can see lots of flips on this FHR levels... So the FHR Flip would be another FHR trades...

 

So far we could have this FHR trades :

 

Centrifugal :

 

_ Momentum FHR

_ FHR Flip

 

 

Centripetal :

_ Cycle FHR

_ Cycle Fibo FHR

_ Cycle Back FHR

[walterw 10]

Ok here I attach some charts to meditate on ammmmmmm ammmmmm

cheers Walter.

[Don4 10]

I was away today, didnt get a chance to look at charts but it seems there were many different types of trades today!

[Don4 10]

Ok walter, as we have noticed that many many times most of our FHR trades are always at daily support or resistance not always but most of the time. It seems as the flip would be the quickest way to enter a position without waiting for to much conformation,your thoughts!

[walterw 10]

Ok walter, as we have noticed that many many times most of our FHR trades are always at daily support or resistance not always but most of the time. It seems as the flip would be the quickest way to enter a position without waiting for to much conformation,your thoughts!

 

Yes Don I also noticed that... seems like "flips" are very solid on this FHR levels... its interesting how we are evolving here... previous technicals ideas being combined with new ones... I never expected that we would come with something like this... cheers Walter.

[walterw 10]

Hello dear fellow traders, today is monday july 2... and it has been so far an interesting day to see how FHR trades worked...

 

I must mention here some aspects I had been taking into consideration about our FHR trades till now... we are taking the Range of the hour previous to London open.... now, this hour happens to be the first hour of session from Europe, wich opens one hour earlier than London, thats why generally we have an important range... and when you have such an important range, breaking it may mean a lot... thats why so far I am impressed to see the flips that happen on this levels once broken...

 

I attach todays usd/jpy and gbp/usd 1 min chart... cheers Walter.

[Guest cooter]

Hello dear fellow traders, today is monday july 2... and it has been so far an interesting day to see how FHR trades worked...

 

I must mention here some aspects I had been taking into consideration about our FHR trades till now... we are taking the Range of the hour previous to London open.... now, this hour happens to be the first hour of session from Europe, wich opens one hour earlier than London, thats why generally we have an important range... and when you have such an important range, breaking it may mean a lot... thats why so far I am impressed to see the flips that happen on this levels once broken...

 

I attach todays usd/jpy and gbp/usd 1 min chart... cheers Walter.

 

Guess this finally answers my question from earlier in the week above....

 

http://www.traderslaboratory.com/forums/f24/the-fhr-trades-1976.html#post13356

 

thxs

[walterw 10]

Guess this finally answers my question from earlier in the week above....

 

http://www.traderslaboratory.com/forums/f24/the-fhr-trades-1976.html#post13356

 

thxs

 

 

Yes Cooter, actually I really did not understand much what you posted at that time because I am very new to forex... but yes thats the concept really just like you posted there... I think these levels can not be dismissed by any serious forex trader... they are pivotal... cheers Walter.

[walterw 10]

Some of today FHR setups...