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Showing posts from October, 2012

Review week 43

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Last week was an encouraging week with many trade opportunities according to my trading plan. I opened 5 positions. By Wednesday I was about 23% up on my account. It might have been wise to have taken some profits off of the table at that point as on the moment I am only up by 8% on the week, but I decided to try and let my profits run. So on Thursday and Friday the expected consolidation and retrace kicked in on the open trades. Below are the snapshots of the open trades. I believe they speak for themselves.

A few notes still:

USDJPY - I placed an add on order as a second inside bar had formed. I was aware of the resistance ahead, but it was to far away to be placing my entry order above that level. As price closed Friday above the support level of 79,59 I decided to keep the position open.

USDCAD - On Thursday all long entry rules were triggered. Additional confirmation was also available by the fact that price closed above the kumo and that the future kumo is bullish. Price hit almost…

What goes up, must come down

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Gold and Silver have been extremely bullish in August and September.  And it looks like "what goes up, must come down" is what's in play here as last two weeks down trends were forming. At the beginning of past week the down trend was confirmed by my Ichimoku analysis and then prices started consolidating. Then yesterday / friday prices broke down in an impulsive move in alignment with the trend. Below two charts show how I got in.

So I got in at the break of the mother candles. The yellow dotted lines are my entries. The red lines are my initial stops and the green lines my initial targets. Both trades have potential larger (lower) targets.

Possible long trade on USDJPY

I just spotted this potential long trade on the USDJPY. My guess is, that I am not the only one who spotted this. Japanese institutional traders are known for trading by the Ichimoku cloud. And I bet they are all looking to go long as the cloud is very favourable to the upside, early but still. This in itse…

Back to trading inside bars only

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Last week I decided to take a break and re-evaluate my trading strategy and try to define my edge in the market. I came to the conclusion, that I was trading to many methods / patterns. I do not have time for this and as a result my analyses were lacking focus and consistency. So I will take a step back and trade only one method and only on major currency pairs.

Inside bar Ichimoku strategy
Edge:
Use corrections in confirmed trend to get in on the move. Markets either trend up or down or move side ways. My strategy is for trending markets only. In a trend prices usually do not move only up or only down. Instead prices move in an impulsive - corrective manner. Check out this post for a good explanation of impulsive vs corrective moves. My strategy is to identify the trend and then trade in the direction of the trend. I will wait for a corrective move and then place my entries so that when price will continue impulsively in the direction of the trend I will be in the trade.

I confirm the t…