Trading Journal 1st May - 2nd May 2014

The trades below were executed in between 1/5/2014 - 3/1/2013.

• EUR/USD buy @ 1.3878. Did not see the second inverted hammer coming.

• EUR/USD sell @ 1.3873 - Price did no break above the 20 EMA folloing the inverted hammer.

Simple 4 Hours

Indicators: EMA 30, CCPI, IBFX Weekly Pivot, Fibonacci Expension / Retarecement
Time Frame: 4 hour

Trading Plan:

1. Look at CCPI. Only open trades on pairs that has at least -50/+50. Do not trade in between that.

2. Look at EMA 30. If price is above EMA 30 and the signal is sell, plot Fibo Retracement to set TP. Otherwise, use Fibo Extension to set TP.

3. Look at Weekly Pivot. Price has to exceed / break the reversal point. If price is at the pivot line / support / resistance, do not enter. You may open a pending order a few pips above / below the reversal point. Otherwise, just check it out again after 4 hours.

4. To set TP, you need to make sure the fibo point is as close as possible to the Reversal points (Pivot). Do not exceed it. For example, if R1 is between 100% and 161%, set TP at 100%.

5. Use a 5% money management.

6. Sometimes, CCPI will falls on the same line as EMA 30, Pivot. Just be patient and wait for it to break / reverse.

Swing: Zigzag - EMA 30 - Stoc - Fib

Indicators needed:
1. Zigzag
2. EMA 30
3. Stochastic
4. Fibonacci Retracement or Extension

Time Frame: H4 / D1

Trading Plan:
1. Look at zigzag. Make sure it has finished performing its upward/downward move.
2. Look at stochastic. Make sure it is crossing over from either overbought/oversold level.
4. Draw a fibonacci retracement if price is above EMA 30 when you sold. TP at 50%.
5. Draw a fibonacci retracement if price is below EMA30 when you bought. TP at 50%.
6. Draw a fibonacci expension if price is below EMA30 when you sell. TP at 100%.
7. Draw a fibonacci expsension if price is above EMA 30 when you buy. TP at 100%.

Example:
1. EUR/USD

200 pips

2. USD/JPY

70 pips

3. GBP/USD

60 pips

4. USD/CHF

70 pips

5. AUD/USD

100 pips

6. EUR/CHF

170 pips

7. EUR/JPY

75 pips

8. EUR/GBP

-77 pips

Parabolic - Stoch -RSI

1. Look at 2 time frames. (M5/M30, M15/H1, /H1/H4, H4/D1)
-trend at either m30/h1/h4/d1
-entry at either m5/m30/h1/h4

2. Look at trend.
-parabolic must be buy/sell
-Stochastic must be just from overbough to oversold or vice versa
-RSI must below/above 50

3. Look at entry TF accordingly.
- Conditions must match the trend conditions above except that stochastic not
 necessarily from overbought/oversold.

4. PLot Fibo expension to determine TP.

5. Set SL below the entry bar

Bollinger - RSI - MACD

Indicators needed:

• Bollinger band - to set TP 
• RSI 
• MACD

Trading Rules:

1. Make sure price has hit the either ends of the bollinger bands / the middle line of the bollinger band.
2. RSI must be below/above 50.
3. MACD must be above/below the 0.0 line
4. Once all these conditions happens, enter the trade and set TP at the either end of the bollinger band.
5. Set SL on the latest support or resistance.

Simple Balanced System - Modified

Indicators:
1. Parabolic SAR
2. EMA 5, 10
3. Stochastic (14, 3, 3)
4. RSI (14, 30, 70, 50)

Trade Plane:
1. Look for a new Parabolic SAR formation. When the 1st dot appears, look for the crossing of EMA 5 & 10.
2. If both 1st dot of SAR and EMAs crossing happens at the same time, look at Stochastic and RSI.
3. Stochastic must be either moving up or down. Just make sure it is not in the over bought or over sold area.
4. RSI must be below or above 50.
5. If all those conditions above happens at the same time when the 1st dot appears, enter the trade.
6. Set Fibonacci Expansion as profit target.
7. Set SL at the resistance/support level.

I will include the examples later on.

Scalping

In today's post, I'm gonna write a simple strategy that I've just learnt. And then, I will put some examples into it.

First of all, I don't like too many indicators. I like the rules to be as simple as possible.

In this strategy, you need to set up 5 charts on the same currencies but different time frames. For example, create a profile named 'EURUSD' and then set up 5 EUR/USD charts with Time Frame M1, ,M5, M15, M30 and H1.

Indicators that I'll be using are:
1. EMA 30
2. Stochastic
3. Fibonacci Expansion (to get the rough target)
Set the 1st 2 indicators on your chart and save the template so that you can just load the template on all the rest of the charts.

Alright, here is the trading plan:

1. M15, M30 and H1 are the trends. Look at any one of them.
2. Make sure that the price bar is above EMA 30.
3. Make sure the stochastic has just crossed from overbought/oversold level.
4. If M15 match the criteria, look at M1 for entry when it matches the same criteria. If M30 matches, look at M5 for entry. If H1 matches, look at M15 for entry.
5. Alright, after you have opened a position, set up the fibonacci expansion on your entry chart to set TP. I don't like to close manually. I rather set TP so that I can forget about it.

EXAMPLES:

EUR/USD:

Alright. Here you are seeing the 15 min chart. Stochastic had just crossed from oversold area at 18:00. In the meantime, price is above EMA 30. Which means I will be looking at1 minute chart for a buy opportunity.

At 18:00 1 minute chart, you can see that stochastic is at overbought area. So it is not a good idea to buy now. I will be waiting for stochastic to crossed over from oversold area to buy.

Alright! At 18:14 1 minute chart, stochastic is crossing over from oversold. Price is above EMA30. I will be waiting for this price bar to close above EMA 30 and buy on the next bullish candle. In the meantime, I have set the fibonacci expansion. My TP target will be at 61.8. Let see what happens next.

As you can see, the price hit my target. About 10 pips from this trade within 4 minutes. Not bad eh? Let's look at another example.

USD/JPY:

We are looking at USD/JPY 30 minute chart right now. Stochastic just crossed over from overbought to oversold. Price is below EMA 30 at 4:30. So I am going to look for a sell opportunity at M5 chart.

At 4:45, stochastic has just crossed over from overbought area. Price is below EMA 30. It seems good to open now. Fibonacci expansion has been set up. TP target at 61.8. Let's see whether the price will hit my target.

 Alright! It did hit. About 6 pips from this trade. Let's look at another example.

GBP/USD:

Right now, we are looking at H1 chart at 8:00. Price is below EMA 30 which means its trending down. But stochastic is heading up which means that the price is retracing now. So if I were to buy, I need to take one swing only and not more than that. I can't expect much from this trade set up. So let's look for a buy opportunity at M15 chart now.

At 8:30 M15 chart, you can see that stochastic just crossed over from oversold area. Price is at EMA 30. I'll be buying when this candle closes and the next candle is above EMA 30. I have set up the Fibonacci. But this time, I did not target 61.8. Instead, I target 100.00 because if I were to target 61.8, the move would be super small for M15. So 100.00 area is an acceptable target for me in this case. Let's look what happened next.

Alright!! The price hit my target. About 20 pips from this trade.

In total, the 3 examples that I've just shown add up to about 37 pips. Well, it does not sounds bad to me.

In conclusion, for me, I don't need to sit in front of your computer all the time. Once I find a good set up, I will just open it and set TP&SL. Then I can forget about it and do something else. Well, it depends on your nature. For me, I rather not get mixed up with my own emotions.

I'll be writing my intraday analysis in the next post. Oh by the way, this is just for education purposes for me so that I can refer to it whenever I want. Its not the actual trade that I made.