Trading What You See

Trading Systems Free Forex Trading Systems
1

Hello traders,

In this thread, I’ll be posting the trades I take and the reasoning behind why I choose to do so.

But I want to take a different look at the market. I’ve been trading for a while now, and worked a lot on trying to build a system. Then I had an epiphany. When I trade a “system”, possibly like other traders do, I follow the system black and white, and it blinds me from trading anything else. It blinds me from looking at other things. So this is my new perspective. Trading without following a black and white system.

So I do have a standard setup that I’m looking at, and sometimes, all I need to use to determine if I should take a trade is my default settings, but I will most times look at multiple different factors to take a trade.

I will be trading daily charts with the following standard settings:

A 200 period simple moving average
A 20 period CCI
A MACD with the settings 21, 55, 8

I am trying to make trading simple without looking at 1000 indicators, but looking specific signals for taking trades.

What I look at:

Candlestick Patterns
Chart patterns
Fibonacci Retracement
Elliot waves
DIVERGENCE <-- big on this
Multi Time frame analysis

I hope that voicing what I look at to take trades will help you, and not be detrimental to your trading.

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nzddailybearishdivergence.jpg700×455 40.7 KB

In this daily chart of the NZD/USD, there was a very nice setup that I took and am currently still in the trade.

I entered short at .866 with a stop at .8745 near the high and a take profit of .85 at support at the expanding triangle.
A little over 2:1 RR which is very good.

I took this trade, even though it was counter trend for a few reason.
There was bearish divergence. Price made higher highs while the MACD made lower highs.
Secondly there was a Bearish Engulfing pattern at the second high, and also at resistance of the previous high. When the Bearish Engulfing pattern closed, the CCI had just dropped below the 100 level suggesting that price was dropping.

Usually, I don’t take counter trend trades, but this short just had a lot saying price was going down, and I never want to argue with the market.