This isn’t the ‘Holy Grail System’. I’m yet to ascertain (to my satisfaction) if this approach is quite as profitable as I think - it is work in progress. I have only recently understood the importance of keeping a journal; so in the light of this, I decided to keep an online journal - Moshow’s Journal.
In a bid to better myself, I reasoned what better way to better myself than to have co-traders criticize me constructively. I have had years of experience and over the years, I have learned a lot which I believe are worth sharing; hence, I do not roll over for any criticism - it has to be constructive. Also, please understand the uniqueness of every trader as we tend to deal with situations differently.
I intend to post screen shots of my positions here religiously (I pray I won’t get lazy); and after the trade has been closed, I will write a blog post on how the position was managed. I trade strictly price actions: Harmonic patterns, Fibonacci retracement- expansion cluster, Fibonacci retracement-retracement cluster etc.; best/most used tools are Fibonacci tools. It delights me whenever Flag forms; I have great records (mostly not documented though) trading them. For I appreciate the risk in forex, I would distant myself from words that may regard this method as absolute.
I hope I have not broken any rule.
TRADING RULES
ENTRY RULES
ALWAYS HAVE FUN!
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In trending market, always trade in direction of the trend.
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Check for pattern on 4-hour time frame.
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Check for sub pattern on 1-hour time frame.
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Check for divergence on Stochastic on 1-hour time frame.
a. Positive divergence/no divergence is a good sign to take a shot.
b. However, if negative divergence forms, do not take the trade.
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Mark out the closest resistance/support to the entry.
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Mark out other resistances/supports between entry and target.
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Set Stop Loss below the most recent swing low.
a. Stop Loss must not exceed maximum limit of 45 pips.
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Set a trailing stop of 40 pips.
EXIT RULES
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The target is always the principal exit level.
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Check if an MS low/MS high forms on a reversal level on 1-hour time frame.
a. Close in the Stop Loss on the price level if there is a support/resistance to bounce price in the predefined direction;
b. Exit position immediately if not.
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Check if stochastic signals negative divergence on 1-hour time frame.
a. Close in the Stop Loss on the price level if there is a support/resistance to bounce price in the predefined direction;
b. Exit position immediately if not.
Should be interesting. Since you’re keeping a public journal, have you thought of using myfxbook to record your trades as well?
Yea. I actually thought of it. I had wanted to use Babypips Journal (I think it’s meetpips.com) but I realized it had been discontinued for sometime now. I didn’t know. I wanted meetpips particularly because I wouldn’t have to signup again since the same login that works here works there.
I don’t enjoy that luxury with myfxbook.com so I was relunctant to sign up. It has to do with me being afraid I might forget my login if I chose a new login and password.
I guess I should try it. Before now, I had stuck to doing my review using predefined parameters like : ratio of “good” bullish flags to bearish flags etc. I suppose myfxbook should make my work easier -right?
Thanks for the response. I also have a feeling it will be interesting. Happy New Year.
Its an uptrend on 4hr.
on 4hr: Drawing Fibonacci retracement tool from swing “1” to swing “2”; and Fibonacci Expansion from swing “2” to swing “3” and then to swing “4” results to Fibonacci retracment-expansion cluster (region covered by green lines).
On 1hr: Harmonic pattern formed. “PRZ” is the region covered by red lines.
Target is at a trend line resistance from 4hr (1.0992); and sl is at 1.0882 - below swing low. Buy limit at 1.0857
Thin trend line and horizontal line 1.0935 are resistant levels. Also drawing Fib retracement from swing “A” to recent swing low, and another from swing “C” to recent swing low forms clusters that may bounce price - I didn’t draw them to have a neat shot.
Happy New Year.
I closed the order as price didn’t pick it up ): . I will monitor this setup to see if it will get to the target; after which I will blog about what I did wrong. However, I take solace in that I got many things right; apparently, not enough though.
I would have exited as soon as bearish divergence (note line on stochastic) forms. Price bounced from the last Fibonacci retracement cluster.
So after a long wait, Fibonacci retracement-expansion cluster formed on 4hr i.e. Fib retracement tool was drawn from swing “1” to swing “2”; and Fib expansion was drawn from swing “2” to “3”, and to “4”. The green lines are the resulting cluster.
On 1hr, Bullish Flag formed. And price bounced exactly from the confluence.
On 4hr: Region covered by green lines is the cluster formed as a result of Fib retracement drawn from swing “1” to swing “B”; Expansion tool was drawn from swing “B” to “C” and then to swing “D”.
On 1hr: Sub-pattern whose Fibo retracement-expansion cluster sits inside the main cluster formed; and price bounced perfectly from it. Indigo lines form the cluster. Drawing Fib retracement from swing “A” to “B”, Fib Expansion from swing “B” to swing “C” and then to swing “D” forms the cluster.
Thick trend line could bounce price. Also Fib retracement-retracement clusters (from B to swing in the cluster and D to swing in the cluster) are significant levels to look out for.
So far this year, I haven’t had much luck in my trades: I miss the good ones and some really good setups suddenly turn bad.
SELL EURUSD: GOOD FIBONACCI RETRACEMENT-EXPANSION CLUSTER SETUP TURNED BAD
Last week didn’t exactly go as I would have wanted but then again it is a new week, and I intend to the right the wrongs.
Region covered by green lines is a cluster and price formed an inverted hammer on trend line cluster just below it. Bullish diveregence formed (note line on Stochastic). Target is at a resistance.
GBPUSD Short closed: + 124 pips. Sweet revenge.
I was stopped out with + 53 pips (trailing stop got hit) while price trades towards my target.
I will blog on what I did right/wrong later in the day
I went long on EURUSD immediately after a reversal bar formed confluence between trend line and Fibonacci retracement-retracement cluster (green lines). Target was set at higher high and SL was set below a swing low
