I am just seeking to establish an online journal so I can evaluate my system and performance and establish consistence with the method I am using. This post is being updated on an ongoing basis as I define my trading approach.
- I am MAINLY trading these pairs… USDJPY, EURJPY, USDCAD, EURUSD H1 to WEEKLY
- I am trading Support and Resistance using Candlestick Patterns.
- I identify S & R levels around patterns and stack entries towards a profit goal.
- To pay attention to Location by identifying support & resistance and to properly time my entries based on reaction to S&R.
- I will scan H4 through Weekly to evaluate the strength of the Support or Resistance Level that I am seeking to trade.
- I will take entries from the H1 & H4 Chart.
- I will no longer use a system or setup #1 and #2. Rather each will be different methods of identifying S & R.
STRATEGY FOR PICKING S&R
Every bearish candlestick pattern consisting of TWO OPPOSITE COLOR BARS creates support which we buy AND every bullish candlestick pattern consisting of TWO OPPOSITE COLOR BARS creates resistance which we sell. (SETUP#1)
Opposite of the above for Support.
Bullish bar lows create resistance in 2BAR Bearish Candlestick Patterns and Bearish bar highs create Support in 2 Bar Bullish Candlestick Patterns .This is the rationale behind SWING BREAKOUTS described below. Particular attention should be given to those around Swing Highs and Swing Lows.
Essential question to ask yourself here is “Where did price turn?”
Additionally, in principle, Higher Highs (which means BULL MARKET) means that if bears “TURNED PRICE” here, then bulls close above that turn, a strong BULLISH MOVE is likely ahead to continue making higher highs. The converse applies for BEAR MARKETS.
So when bears are unable to close and or maintain below a BULLISH TURN POINT, ie, a Bullish bar low, the result will be a BUY OFF. And if Bulls are unable to close and or maintain above a BEARISH TURN POINT, ie, a Bearish bar high, the result is a SELL OFF.
KEY NOTE ON S&R: Past support becomes future resistance. Past Resistance becomes future support.
SWING BREAKOUT CONCEPT
The First bullish bar from a Swing High will give sell at nearest round number below its low AND first bearish bar from Swing Low will give buy at the nearest round number above its high.
- Buyers love the lowest bearish bar High
- Sellers love the highest bullish bar Low.
STUDY THE PRINCIPLES…APPLY THEM…PROFIT…REPEAT!!!