Daily Trading Plan

[oDano]

Hi all

Starting this Daily Trading Plan tread to keep track of my trading
hope this can help others too
Please excuse my English as its not my 1st language.

Let me introduce a bit on my trading strategy, I am technical trader and a believer in price action and price action only. So you will not see me trade chart patterns or draw pictures on my chart with trend lines. My trading strategy is mostly based on trend, support and resistance levels, candle stick pattern.

I will try to explain things more on my daily post.

Questions and discussions welcome

Dan

[Jonasuen]

Hi Dan, could you explain to me why you only believe in price action only?

[oDano]

2012/7/17 AUD/USD Long



today's plan is to long AUD/USD when it pulls back to the previous high around 1.0266
before rushing in and place the trade, wait for a small bullish candle to form around 1.0266
enter long when next candle breaks the high of the small bullish candle
stop loss below the small candle and 1st target below 1.0300

the reasoning for this trade is simply because AUD is up trending in the hourly chart, it has also broken the high made on 11/7. The pair has shown strength and I want to get in on a pull back. the target is below 1.0300 because that is a previous resistance and big number.

Stick to the plan
Dan

2012/7/18 Morning Out Come




Market penetrated the support level i have identified when Ben Bernanke spoke last night. This guy is intra-day trader's worst enemy.....
The overall movement was as expected, market came down to test support and went up.
Bad thing I did was not able to watch the market and enter at a small bullish candle, I left a Buy Limit Order there and stop loss was hit. Never leave a pending order in when there is fundamental announcement coming.

Good revision of a very important lesson
Dan

[oDano]

Hi Dan, could you explain to me why you only believe in price action only?

just personal preference, i tried drawing spider webs on my chart with trend lines, tried to trade with many indicators, and they did not work for me. Price action works for me because it is more objective. Price action is analyzed from raw price data without being processed through various formula. And also it can always be explained logically.

[oDano]

The plan is to short Euro when it pulls back to the zone between 1.2200 and 1.2180, this level is the resistance level 2 weeks ago. wait for the market to consolidate there, when a bearish candle penetrate 1.2180 from above, short EUR/USD. place stop loss above 1.2200, target take profit just before 1.2100.

Euro zone is in a bad status now, everyone know, so the way to trade EUR is of course SHORT. The question is where to short? EUR/USD made a big drop last Friday and continued to fall Monday Asia session, a pull back is expected soon. The level identified above should be a good resistance to the price pull back, The daily pivot, whole number 1.2200 and 50% fib level are all cluttered there. Most important thing is to wait for a bearish candle to bring the price down through 1.2180 to confirm that the price has reacted to the resistance zone we have identified.



no data announcement tonight, should be a nice night to trade.

Stick to the plan, step by step
Its better to not trade rather than placing an emotional trade

Dan Liao

2012/7/24 Out Come, No trade



Price did not pull back to 1.2180, it consolidated between 1.2080 and 1.2130 yesterday. The plan of short EUR/USD between 1.2180 and 1.2200 is still valid, I will still make this trade if market ticks my requirements.


2012/7/25 No trade again



With a series of weak PMI data from Europe, EUR/USD was under pressure. Price failed to pull back higher, instead, it has been ranging sideways until it dropped through the daily pivot and continued down.
A trading opportunity has been formed when price pulls back to pivot to test the resistance. it has failed to get above the pivot point, this is a good spot to short EUR/USD.

Keeping an eye on EUR/USD, looking for chance to enter short.

Dan Liao

[oDano]

2012/07/25 EUR/USD Short

after 2 days of not being able to enter, I need to stay cool.

---------Do not chase the market, only enter at pull backs---------



The new plan is to wait for the market to pull back to Monday's low as well as today's pivot between 1.2070 and 1.2080. A doji or small candle is expected to form in the zone in M15, and price breaking its low signals for short entry. stop loss above 1.2080. 1st target is 1.2010.

Stay Cool

Dan Liao