This thread will be my trading journal where, every day, I write my orders, the action on the opened position (SL move, tp, etc), and my analysis.
Why I named this thread "Diary" and not "journal"?
Because I think a person should never stop learning, NEVER!
I'm continually looking for insights, methods of analysis (Cyclical, psychological, ..), etc. to improve my trading system and my view of the market then any new thing I learn I'll will share it here, my goal is to make this thread like a biography of my "life as a trader" where all can learn from my experience and improve it commenting my posts with their opinions, advide and whatever you want.
All in your hands - trading system
I think the traders have got all they need to make a good analysis and be profitable. About the price we can know:
- Why? Fundamental analysis. (But as Jesse Livermore said it's not so important)
- Who? Behavioral finance, Psychology of the crowds.
- How? Technical analysis
- When? Cyclical analysis
Operativity
My trading rules are the "W.D. Gann's rules"
The best TF I like trading is the Daily beacuse is the least stressful, the candlestick and charts patterns are much more reiable and a some other good reason shown here Why Trading The Daily Charts Will Improve Your Trading Results
Tools:
The only one true indicator is the price, so my trading system is based mainly on the price action with candlestick patterns, chart patterns, trend lines, S&R, fibonacci, etc but I helps me with:
- A slow stochastic (10,3,6) for the divergence.
- EMA21 and EMA100 for dynamic S&R.
And finally with vertical lines, calculated with my cyclical indicator, which show the beginning and end of the respective cycle.
Since, as I said, I'm a swing trader, I work on the intermediate cycle(64 days) and I control the upper cycle (128 days) and the lower (32 days).
But all these "tools" are only an help since the indicators tell you the past and, as theory of variability said, the duration of the cycle are not costant (they last longer when the cycle is bullish and less when is bearish) so my operativity is deteminated only by the price action singnal!
Other tools
Traders positioning
COT index
Forex factory calendar
Risk:reward
I open a position only when R:R is greater than 1:1 and I risk no more than 2%.
Learning source
I suggest you this book:
Beyond candlestick - Steve Nison (I think the best book about candlestick pattern)
The basics of the Elliot Wave principle - Robert R. Prechter (basics of impulse and corrective waves)
J.M. Hurst - The Profit Magic of Stock Transaction Timing (Cycle theory)
Day trading the currency market - Kathy Lien (the best book for who is new in this market)
The disciplined trader - Douglas Mark (trader psycology)
(If you want some of these in PDF format, ask me )
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The posts about this tradyng system star at the 10th reply.
The previous replys come from my old and not studied system, as you can see there aren't cycle line, etc.. don't look at these.