Hallo there, greeting from Indonesia. My name is Nus. I know forex trading for almost 1,5 year and trading demo for almost 6 months. I’m decided to trading seriously and open a live account for the last 3 months. I’m decide to publishing my trading setup because I think it will bring more responsibility for me, since there will be records about the setup that I’ve been taken, either good or bad. And I can learn from all that setup.
I’ve been stalking and learning a lot from Babypips thread, especially from Johnathon Fox (Forex School Online thread) and Loonie Adventure. I owed them for sharing a lot of free lesson and material. Two thumbs up.
So basically, I’m trading price action in Daily and H4 timeframe, sometimes in H1 or Weekly TF. I decided not trading below H1 TF. In the next post I’ll write down rules that I take in forex trading.
Cheers
[I]*) sorry for my english, since english is not my mother language. [/I]
[B]Basic[/B] : Price Action and Support-Resistance
[B]Currency [/B]: almost all
[B]Timeframe [/B]: Weekly, Daily, H8, H4, H1. You can create H8 TF on MT 4 platform, based on period converter here.
[B]Indicator [/B]: usually I use clean chart, but rarely using Stochastic (14,3,3) or MA 100 and MA 200 just for confirmation
[B]Step by step[/B] :
On Weekly then Daily TF [B]identify Support-Resistance area[/B]. Remember S/R is not an exact level, its an area.
[B][B]Trend [/B]: Uptrend, Downtrend, Sideways.[/B] How to identify support-resistance and trend, you can read it here in Babypips. We can trade on any trend, but mostly I trade on clear trend.
Based on that Support-Resistance, I’ll wait for a [B]confirmation based on Price Action[/B] that formed on that S/R area. What kind of Price Action? You can find it on Babypips cheat sheet here. Babypips is so generous to give us a free cheat sheet :p. My favorite PA is Pin Bar, Engulfing Bar and 2 Bar Reversal.
If there’s any PA that formed. I’ll [B]open 1 or 2 position[/B] based on risk.
[B]Stop loss:[/B] willing to take the risk [B]as long as below 5%[/B] of my portfolio.
[B]Take profit: next support/resistance or high/low[/B]. Sometimes the Risk/reward ratio may be below 1:1, but I see several setup will headed to previous S/R or high/low even the R/R ratio below 1:1.
I’m [B]using buffer[/B] on my open position and stop loss 3-10 pips, depend on the pair I traded. On major currency I’m usually used buffer 3-5 pips and for the rest 5-10 pips.
Okay, that’s it. In the next post, I will show you the trade I take.
Daily : last friday GBPJPY formed a Bearish Pingulfing bar on resistance area. Price respect this area in the past and can’t break it higher. So I decided to open a sell position.
OP : 172.32
SL : 173.52
TP : 170.00
Strategy : since this is a countretrend trade, I’ll moved my OP to BE after price reach 171.65.
Daily :
price is in uptrend, create a new high and now price pullback to the area that I marked as support. Last friday, AUDUSD formed a Pin Bar and I decide to open a buy order.
OP : 0.9285
SL : 0.9197
TP : 0.9420
Strategy : I’ll moved my OP to BE if price reach 0.9370
Daily :
I’m consider that the head&shoulder formation in the past has been confirmed. I wait for a pullback at those area and decided to open sell order. The area that I enter now flip from support to resistance
Decide to closed this pair at 1.4845. Gosh, i think I should reconsider and re-think using a “pullback” to take a trade. Maybe it need more advanced skill and experience to take this trade.
Price never break the high of the engulf bar and move inside the engulf bar for the last 6 days. For a moment, price has moved sideways. Good luck to you who took this trade.
