I will be keeping a journal of my trades and trading ideas. I will fine tune my strategy as I go. I am currently trading with a demo account that starts with my initial balance that I plan on using. I will be using the same risk management strategy with the demo account that I plan on using with a live account.
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My trading strategy:
I used a 52 week(1 year) sma and a 26(6 month) week sma. When the 6 month sma is above the year sma, I will only look for long entries and vice versa. Then I will use a 90 day sma on the daily chart for the short term trend. I will look for price action to test the 90 day sma, and use candlestick patterns for entry. Risk Management is 3% on a given trade. Stops are place at candlestick pattern high/low depending on buy/sell, respectively. Target is previous swing high/low or support/resistance.
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My 26 week SMA was above my 52 week sma, which signifies a long position.
Below here, you can see that price action went down to the 3 month sma. After the close of the white candle in the red circle, we have a confirmed bullish engulfing pattern.
Entry: 115.094
Stop Loss: 114.720
Take Profit: 115.950
Risk to Reward: 37.4 pips to 85.6 pips
Ratio: 1 to 2.29
I decided to apply my analysis using the same strategy to all of the major pairs. I think I’ll do this weekly, and then post any trade entry, and trade results through out the week.
GPB/USD Analysis 22 Feb 2022
Weekly Chart has 6 month sma below 1 year sma. Looking for a short trade. Gonna have to wait a while for price action to return to a trending pattern.
EUR/USD Analysis 22 Feb 2022
Weekly charts indicate short sell. Price action peaked over 3 month sma, but has since returned. Looking for a bearish candlestick pattern to short. Maybe a week or two?
AUD/USD Analysis 22 Feb 2022
Weekly charts indicate short position. Price action is currently at the 3 month sma. As the Asian Session opens tonight, the trading volume may set up a nice doji or pin bar. Looking at this to short in the next 2 days.
NZD/USD Analysis 22 Feb 2022
Weekly charts indicate short position. Additionally, we are at a minor resistance level. Looking for a short entry in the next 2-3 days.
USD/CHF Analysis 22 Feb 2022
Weekly chart indicates long position, but the daily chart is really sideways and choppy. Gonna have to wait for this market to start trending before considering an entry.
USD/CAD Analysis 22 Feb 2022
Weekly Charts indicate long. Maybe next week, price action will test the 3 month sma on the daily chart for a bull pattern.
Based on my analyses, it appears that the USD is doing much better recently. I’m not a fundamental trader, but I wonder if an economic report or the Russia/Ukraine issues are causing this.
