Price Action Swing Trading: Daily & H4 Time Frames

Trading Discussion Trade Journals
1

Hi All,

I have decided to start my own trade journal just to keep track of my trades and also to stop me from going against my own strategy, cutting my emotions out which seem to be the thing that causes me to lose trades more often than i should.

After a lot of research I have been doing demo trading for the past month but find it pointless to be honest hence the reason why I have started this up as a bit of a test. I will be depositing a small amount (£200) into my account to trade with using a quite high leverage CFD’s. I suppose you could call it a demo still but its always more exciting when you have the potential to earn money so we will see how it goes.

To start with I will be risking quite a high amount of my capital roughly 10-15% just to try and get my capital up to a substantial amount (hopefully) but we will see how it goes.

[U]Plan
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So first of all I will be trading mainly Major Pairs from the Daily time frame identifying the MAIN Trend, I will then identify trend lines, support & resistance levels with a view to trading the bounce but also following the MAIN trend.

I will be using the H4 chart to look for my entry and also exit points by just looking at individual/multiple candles looking to identify the reversal point. Basically I am looking to catch the reversal as early as possible which brings me to the risk and reward part.

I will be looking for a minimum of 1:3 Risk:Reward ratio if the trade does not meet this criteria I will not be getting in as I do not feel it will be worth while. Dependent on the trade if price hits the 1:2 Risk:Reward point I will then move my stop loss to break even.

I will follow this post shortly with my First trade feel free to comment any advice or questions that you have, I know I have probably not explained this great but I think once I share a few trades you may understand better.

To be continued…

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audnzd 1.jpg700×394 26.1 KB

audnzd 2.jpg700×394 23.5 KB

audnzd 3.jpg700×394 28.7 KB

So my First trade was in the AUD/NZD pair, after noticing it had been in a down trend for the past 5 months or so I knew I was looking for a bearish opportunity to enter the market. I noticed that there was a valley forming (white lines on picture 1) and then see the price was actually on the resistance line i drew in.

I then switched to the H4 chart which there was a clear rejection of price going higher and also a bearish engulfing (white rectangle). Once the bearish engulfing candle closed (white arrow) that was my trigger point to enter the trade. Setting my stop loss above the previous swing high where price got rejected and my profit target just above the recent swing low.

Unfortunatly I was asleep during the spike which was so close to my TP level. (Will bear that in mind for future trades maybe put TP levels a little higher?) I moved my stop loss up to break even as it had gotten past the 1:2 risk reward level and the trade is still in play. We will see how things pan out…

3

Hey Jacky, looks like that trade didn’t go well. Maybe next time. Hey, my trading style is almost exactly the same as yours (I go for 2:1 ratio) and I came to start my own journal here. Say how about we both post in this thread and learn something new together?

4

Not a bad idea jackyd25, with a conventional TA approach, you were just victim to lack of price wiggle room.

Its easy to get drawn into that error, especially when so many TA sites and commentators say things like, “resistance is at 0.4026” - I mean nobody can get that sort of analysis right to the 4th decimal place but they must assume we will think they are more scientific and dependable commentators if they put it this way.