ECC-11 Example – 06/14/2019
With the recent popularity of the ECC-11 Strategy, we thought we’d show you a real world example of two ECC-11 trade ideas that were issued 15 minutes apart. We’ll show you the one that failed and the one that was successful.
If you have not yet read the rules of the ECC-11 Strategy , please do so.
Failed – Potential Buy
ECC-11 Example 1; This was an idea presented by the Web Analyzer on June 14, around 5 am Eastern Time. Let’s take a look at the charts at the time of the call, and see why we would NOT want to take this idea.
- Potential Buy on EURAUD (M15)
- Called At (Price): 1.63530
- Time (UTC): 2019-06-14 09:00:01
Taking a few key points from the rules. “Check to see if the Red line has crossed above or below the Blue line.” The only downside to an image, is that we don’t get to see the candle printing in real time. Even the Replay feature on Trading View doesn’t give you the ‘real time’ view of what happened moment by moment.
We can see on the 15 minute chart (on the right) that the Red was over Blue when the 8:45 candle closed. We don’t know what it was doing during the 9:00am candle. However we can see that at the close of the candle the red and blue were in top of each other.
One the left you will see the 5 minute chart. We can see there at the close of the 8:50 candle the red and blue lines were crossing. Then at 8:55 you see that Red is under Blue. As you recall from the rules, that’s indicating a sell.
Another item to note is the Red arrow in the middle of the 15 minute chart. That is where the previous red/blue cross over happened. As you can see it happened INSIDE the cloud. This is a sign that the pair is in consolidation, and skipping the trade might be advised. Remember, we don’t know what the candle looked like right at 9:00, as we are seeing what it was at the close of the candle. Thus we are going to assume that when the call was made the red was still slightly above blue.
Reasons to Avoid This Trade
There are a few reasons why you would avoid this trade. First the last cross over occurred in the cloud. This is a sign that it might not go well. Then we saw that on the 5 minute chart things had started to turn around, and was on a slight downward (sell) track. For those two simple reasons, you should have avoided this trade.
Successful – Potential Sell
ECC-11 Example 2. This was an idea presented by the Web Analyzer on June 14, around 5:15 am Eastern Time. Let’s take a look at the charts at the time of the call, and see why we would want to take this idea.
- Potential Sell on GBPCAD (M15)
- Called At (Price): 1.68619
- Time (UTC): 2019-06-14 09:15:01
On this idea we can see that on the 15 minute time frame, and the 5 minute time frame, the Blue was over Red. You will also notice that on the 15 minute chart the crossover happened in the cloud. However, it’s right at the top of the cloud. This is a borderline call. It’s got the arrow Red arrow on it (for “no”) but in reality it’s close enough that the point might be moot. You can see the Yellow line as the ‘called’ price, which might have been your entry. You can also see the green line, which is the 10 pips point from entry. As you can see,, there was some room to spare on this, and the trade would have hit 10 pips.
These are just two examples of trade ideas that the Web Analyzer produced. Back testing on this type of strategy is fairly simple, as you only have to go back to the time the idea was called and see if the parameters were met and what happened after that. Remember that news can affect pairs in unexpected ways. If the Web Analyzer sees that a pair has met the parameters 5 minutes before news comes out, then you may want to void that trade at the time.
Join IM Mastery Academy
IM is the premier online trading educational platform for Forex, Crypto, Indices and Binary Trading.
With their training videos, live sessions and trade ideas, you can become a full time trader sooner than you think!