Hello everyone :becky:, here it is my small contribution of the baby blue to the nexusfi.com (formerly BMT). :pay-it-forward:
(This has been experimented live on the ES, 6E, CL)
I have made some changes to this post due to the most recent, richly rewarded discoveries!
:pcguru: :bravo:
This system is the Price Action Trading :becky: the Prices that I'm trading are:
the LONDON open (midnight GMT)--->BABYBLUE
the NEWYORK open (midnight EST)--->nyRED
the Midpoint (highs vs lows inside the 9pm-7pm California time frame)--->MP
The most beautiful thing that you can get out of this system is the peace of mind knowing,
that once established, the market always wants to be close to these three price points!!
BABY BLUE is 99% money and life is funny when you are making money! :hehehe:
Since, this price action trading business is completelty all new venture for me,
the charts that I've posted are still loaded with other tools, to help me out till I discover the corect formula!
This thread has evolved since it's original post. As you will surely notice the discrepancies.
Here how it looks like on the chart: BabyLondon10 - Gabriyele's library (
and another confirmed look BabyLondon11 - Gabriyele's library (
So, this is what I did:
FIRST:
Calculate your instrument's MidPoint!
HIGH x LOW = TheSquareRoot=MidPoint price
...for example, high for the ES was 1327.75, and the low was 1302.25
1327.75 x 1302.25 = 1729062.4375
The Square Root of 1740016.375 is 1314.938187710738
or 1315.00
Again, the Time Frame to Observe the price of your instrument is the New York time frame,
(00:00hr till 19:00 EST)
Or if you are in California then 21:00hr till 16:00hr!!
SECOND:
Observe the price of the London Open @ (midnight in London, England) or 4pm in California, that's the keystone!
THIRD:
Observe the Price of the New York Open @ (midnight EST) or @ 9pm in California
THE KICKER:
As it were:
Thursday, July 14th, the LONDON Opened@ 1308.50, below the MidPoint of 1315.00
usually that signal's that NEW YORK will open below the LONDON price, which it did!
NEW YORK opened @1306.25
(This set up is calling for the BEAR day in the regular market hours.)
Come Thursday, the market was again dancing allover these three price lines, giving the most respect toward the BABY BLUE London Line!
Until it closed very near the London Open price. :target-filled:
Keep observing for the divergence signals in the bigger time frames,
since the market will want to go back to the NEW YORK OPEN price and the LONDON OPEN price.
THE MARGIN:
The OPEN price margin for chopiness has been calculated at 1/2 to 2points.
Be advised to have a good trigger tool in order to place better entries and not worry about the chopiness.:)
P.S.
KEEP YOUR DAILY LOG OF THE BLUELINE PRICES, THEY DO MATTER FOR THE WHOLE TRADING WEEK!
That is it! :)
The London Open is very important!
(the financial center of the world, I find it to be the most important price on every instrument!)
(On Thursday, market touched the LONDON open priceline 19 different times!!!)
The New York Open comes in close second.
((.....the future experiment's will show the observance of other markets and their price contribution to this cauldron. Will keep you posted!!))
Hence my name for this beauty: the BabyLondon's BlueLine (BLBL) - BABY BLUE! :)