Hi there,
I'll be posting my daily trades here using stochastic divergence across 5 min/15min/30min/1hr/4hr/daily timeframes. Trades will be taken off Support and Resistance levels, and preferably taken with the trend.
I'm doing this as it will hopefully give me some discipline. My losing trades will also be posted, and that's just embarrassing so should help me take trades that only fit my system.
EDIT
What's the system?
Pretty simple, look up stochastic divergence!
I also like to 'try' (hmmm you'll see that isn't always the case) to trade with the prevailing trend.
So, what do I do.
I 'try' (ha that one again) to trade when the price makes a low or high, and the stochs are at/near the 80/20 levels on 5mim/15 min charts.
The stochs will then turn up/down with price to show a change in direction.
I DO NOT TRADE AT THIS POINT.
So, as an example, in the case of a sell, a new high will be made, stochs will be near 80, on the 5 min and 15 min chart (my favourite settings), and then price will start to fall back. I DO NOT TRADE AT THIS POINT.
Prices will then stop and go back up to make a new high, and if the new high is made, with divergence on either the 5 min or 15 min chart (preferably both), then i will enter the trade. I rarely enter if there is just divergence showing on the 5 min chart as this is very choppy. When the signal is given on both charts then it is far stronger.
Note that trades should be with the prevailing trend (so the overall trend in this example should be down). It is also important to trade into Resistance (for a sell). The examples I give in the journal should show you what I mean.
Settings
5 min Chart stochs 8/2/2
15 min charts stochs 8/3/3
NOTE: If divergence occurs on the 15 min chart then this is a very good signal. Trades can be taken with 15 min divergence (pref with some proof showing on the 30min/1 hour chart) even if it does not show up on the 5 min chart.
I also highly recommend you read the Nobraintertrades blog, with descriptions of common chart formations, especially the teacup, quasimodo and the bottom of the barrel.
Also, I do not trade (ha! that one again) between 10.30am-12.30pm UK time as liquidity tends to decrease and prices can just get stuck.
I think thats it, I hope this journal teaches me some discipline, and maybe helps some people looking to analyse/understand price action and what an undisciplined trader looks like!
I'll be posting my daily trades here using stochastic divergence across 5 min/15min/30min/1hr/4hr/daily timeframes. Trades will be taken off Support and Resistance levels, and preferably taken with the trend.
I'm doing this as it will hopefully give me some discipline. My losing trades will also be posted, and that's just embarrassing so should help me take trades that only fit my system.
EDIT
What's the system?
Pretty simple, look up stochastic divergence!
I also like to 'try' (hmmm you'll see that isn't always the case) to trade with the prevailing trend.
So, what do I do.
I 'try' (ha that one again) to trade when the price makes a low or high, and the stochs are at/near the 80/20 levels on 5mim/15 min charts.
The stochs will then turn up/down with price to show a change in direction.
I DO NOT TRADE AT THIS POINT.
So, as an example, in the case of a sell, a new high will be made, stochs will be near 80, on the 5 min and 15 min chart (my favourite settings), and then price will start to fall back. I DO NOT TRADE AT THIS POINT.
Prices will then stop and go back up to make a new high, and if the new high is made, with divergence on either the 5 min or 15 min chart (preferably both), then i will enter the trade. I rarely enter if there is just divergence showing on the 5 min chart as this is very choppy. When the signal is given on both charts then it is far stronger.
Note that trades should be with the prevailing trend (so the overall trend in this example should be down). It is also important to trade into Resistance (for a sell). The examples I give in the journal should show you what I mean.
Settings
5 min Chart stochs 8/2/2
15 min charts stochs 8/3/3
NOTE: If divergence occurs on the 15 min chart then this is a very good signal. Trades can be taken with 15 min divergence (pref with some proof showing on the 30min/1 hour chart) even if it does not show up on the 5 min chart.
I also highly recommend you read the Nobraintertrades blog, with descriptions of common chart formations, especially the teacup, quasimodo and the bottom of the barrel.
Also, I do not trade (ha! that one again) between 10.30am-12.30pm UK time as liquidity tends to decrease and prices can just get stuck.
I think thats it, I hope this journal teaches me some discipline, and maybe helps some people looking to analyse/understand price action and what an undisciplined trader looks like!