Showing posts from April, 2012

Back to basics

I have been experimenting with the 4hr charts. The past two weeks I have posted my analysis based on 4hr charts. I came to the conclusion, that trading the 4hr charts is much more time consuming than trading the daily charts. It also makes me babysit trades much more. Therefore I am going back to basics and will stick to the daily charts as per my tradingplan.

I have also slightly changed my trading plan. I will focus on 4 pairs: EURUSD, USDJPY, GBPUSD and AUDUSD. And I have changed my reversal entry condition and added an inside-bar entry condition. Also, I have decided not to manage open trades and do just set-and-forget trading.

So every weekend / Sunday I will prepare my charts and look ahead for the trading week. I'll map out support and resistance on the pairs I trade and see if there are any items on the trading calendar that might make me wanna stay out of the market.

So here are my charts:

And here are the major events that could cause heightened volitility.


Update and new trade setup

The order I placed yesterday wasn't triggered. Price went falling straight away after only a little bit of retrace. So I closed out the order during the day.

The next trade has a nice confluence of signals for a short trade:
The trend is down
There has formed a convincing enough bearish pinbar.
Resistance by the 21 ema and a resistance area right on top of the pinbar.

EURUSD rangebound trade setup

It's been a while since I last posted. Last weekend I re-did the blog layout and design. I will leave it at this and focus on posting my analysis. The aim is still to keep a trading journal-like blog not to have a perfect website.

This week it looks like the EURUSD will be ranging between 1,3200 and 1,3000. It has been between these levels since the 4th of April after falling aggressively from 1,3350.

A pinbar formed on the daily chart touching the 21 EMA. There is still some room to move south before hitting the 1,3200 resistance, so I placed my limit sell at the 68% retracement level of the pinbar i/o the 50% level. An entry at that level (1,3152) will give a possible p/l ratio of 2 to 1. The red line is my stop and the green my take profit.