I never considered a sell order, but it seems interesting, so if I put a sell order on the black line, I could have entered a trade then and benefited from the bearish low. The problem with the bearish low, I did not know how low it’ll go and it’ll be too greedy figuring out where, IMO.
I’ll definitely add it to my arsenal.
Thanks for your input, i never thought of a sell order!
**
**
As I reviewed my trade from yesterday, I got to stop with those accurate stop losses; I forget to put a leeway on them.
For today, I’ll take a break, even though there are important economic events that happened in Australia. My plan for tomorrow after looking at economic events will mostly be 80% focus on practising price action, candlestick pattern and support/resistance trading approach with a little technical analysis depending on whether the market is ranging or trending and 20% on economic events.
**
**
Practising price action, candlestick pattern and support/resistance trading approach with a little technical analysis depending on whether the market is ranging or trending and 20% on economic events.
(loss)
Based on support and resistance, I know where the minor support and resistance zones are but probably entered the trade too soon. However, since I know it’s a ranging market, I will use my technical analysis based on my trade plan and set lower S/L + T/P, risk reward ratio.
My new trade will be based on the idea where I made a mistake and didn’t enter close to the minor support or resistance zones. I made sure I did this time.
**
**
(Profit)
I see a new minor support and my stochastic indicated an oversold zone, therefore I closed my trade.
My aim in ranging markets is to take lower profits compared to trending markets.
Every type of profit counts.
The most important thing I need to learn is how to trade ranging markets with risk/reward, win rate and profit/loss ratios.
I noticed with ranging markets technical analysis becomes more useful. If I know what is going to cause volatility then I do not need technical analysis too much.
**
**
What I have learnt about ranging markets is that they are very susceptible to entry points when you enter your trade. If you are not careful where you enter your trade, the already lower volatility market environment will result in bad risk-reward situations more easily. Ranging markets require delicacy in your entry points and should be accurate. Whereas trending markets, catching the trend as soon as possible require little effort if you know which way the market will be going, it’s more of getting in before it’s too late.
Also, I made a loss around the Orange star area, I thought the support has changed but should have been more patient.
**
**
(Profit)
New Trade - I still believe that the market is ranging and the move above the resistance level is a fake out. Based on the past economic data, the Australian economy is seen bearish and a support was turned into resistance, therefore, the market is trending in a lower market already which is bearish. And bulls will get exhausted.
**
**
(Loss)
I did not expect it to try to attempt to test the previous highest candle and therefore got stop.
My new trade - red star and aiming for a downtrend to test the old major support.
**
**
(Profit) & (Loss)
As I was out, I thought it was a good opportunity to long on the yellow star, however, I was incorrect and wasn’t able to really look at the graph clearly since it was on my phone and when I got back home, noticed it was on a huge downtrend. Therefore, decided not to make any trades, while I am out because i cannot make a clear good judgement over the phone.
Today, my plan will be to revise my trade plan and implement ideas i learnt this week.
**
**
Research Section (D & W charts)
Trade entry section (M15 & H1 Charts)
Once I figure out whether I am in a trending or ranging market, I will use the below trade strategy and analysis style.
Trend strategy and analysis plan (M15 & H1)
Ranging strategy and analysis plan (M15 & H1)
Risk/Reward Section
Notes to consider to implement into trade plan
That’s quite a nice one !
Thanks 
, it’s a ever growing trade plan.
**
**
I looked at the economic events and found out it’ll be a quiet day; therefore will be focusing on price action.
I mapped out my long-term perspective of the market, without the gold market perspective which I will consider reviewing after my trade entries.
The long-term trend overall is bearish for AUD/USD.
At the moment I am looking for possible future support and resistance levels that could be turned into high probability trades, which I have execute buy entry and sell entry for the day.
Currently there is no trend that have started, there is a squeeze on the Bollinger band, if I am reading it correctly, need to revise on it. Looks like a fake out.
The market looks like a ranging market and the price action currently looks like it’s going to head upwards to test a old support level and rebound. (blue star, will be my sell entry)
MACD is currently in a crossover, moving average on an uptrend, stochastic is around the middle.
**
**
(Profit)
The price action currently indicates that the current resistance which is the yellow line is actually the resistance level and there is a chance that price will go lower, this could be a possible high probability trade.
I took a smaller profit than usual, however, it is not always possible to know where the market is heading.
**
**
(Loss)
As I keep progressing, I make the right judgement on how the market is going to move, however, I cannot judge when to put my entry points, S/L and T/P. It’s going to take a while till I perfect it.
If I waited a bit longer and let my MACD and Stochastic be aligned with the price action, then a good trade could be possible.
I have also been considering changing my trade approach by following the likely higher volatility market, listening to Bloomberg radio and economic events to provide me leads.
This will allow me to make my trades more interesting, learn from my mistakes more and expand my learning exponentially.
I also need to consider to make my technical indicator section more specific on my trade entries.
I have to be more patient, and believe in my views on the market.
Indeed. It turns out that the ‘what (direction)’ is the easy bit; it’s the ‘when’ and ‘where’ that mess us up!
As an aside, are those Bollinger Bands I see on your chart? If so, how are you using them and what are your settings? I’m a huge fan of Bollinger Bands, personally, having even put down some cash to buy John’s book. Always interesting to see what other people are doing with them.
Hey,
I use the default settings for my Bollinger bands and I use them to find possible trends and possible squeeze spots. I am finding Bollinger bands more useful when markets are more volatile.
**
**
EUR/USD 11:30 AM AUS time
I currently traded on the idea that there was a Bollinger band squeeze aligned with 2 crossovers from my Moving average and MACD plus there is a major support i see. I ignored the fact that Stochastic indicates it is oversold and will test whether this strategy can be viable.
Wow - I got 42 Pips out of the upside earlier, then wandered off for the day except I popped back a few times to see that orderly drift taking place - too slow to keep me interested, but hey Having read this - I’ll be ineterested in future !
Damm, nice! I wish I caught that.
I wish I wasn’t focused on AUD/USD at that time, I started to notice other markets had higher volatility.
**
**
As I look at my trades which are on together gbp/usd & eur/usd, they tend to move in correlation against the us economy. The only game changer between gbp/usd vs eur/usd is the difference in economic news, therefore, I’ll need to make my trade plan apparent to this new notice.
Also, taking this further, I got it from a babypips member and he states:
Currency-pairs are all either directly or inversely correlated, and it’s easy to increase your risk-exposure without realising it.
Which I am agreeing on, learning how to trade the news is vital.
I think you are on the M15 chart? John Bollinger suggests that when using BB intra-day that you reduce the period to about 15, and the deviation to 1.8.
I tend to ignore the second suggestion, as John trades stocks, which are less volatile. However, I have found shorter periods a huge improvement. Put another way, your current BB setup is taking into account price action from 5 hours ago. Is that really relevant on the M15?
Conversely, a 15 period BB on the M5 is only looking at data from 2.5 hours ago, which feels about right. I’d probably give a period of 16 a try on the M15, which gives you a 4 hour look-back (John is also a proponent of indicator periods that make sense or are significant, and 4 hours is half a trading session).
Feel free to ignore, but moving to a 12 hour period on the H1 chart significantly improved the quality of my signals.
