My Trading Journal - Price Action and Tick Volume Analysis

When I was starting to trade FOREX, I already knew that I would be a chartist. It could be because of my technical background as an engineer. So I tried all indicators available. I even bought some "surefire" indicators that will produce unlimited opportunities in the market. However none of these gave me certain, consistent and spot-on results. As we all know, consistency is the key in order to succeed in this business. Then I learned about Price Action (PA) and the psychology behind candlestick patterns. Using PA and candlesticks gave me better results but were lacking in some points. After reading a lot of books, websites and forums, I found out that there are only 2 leading indicators available, PRICE and VOLUME. So I immediately incorporated volume in my trading and everything changed.

The combination of PRICE and VOLUME are the only indicators that I need. These two tell me how the market is doing at the moment and what it will do next. I don't say that this is the holy grail of trading but these indicators suit me well and give me what I need- CONSISTENCY.

PRICE and VOLUME are as old as tape reading used by well known traders so I didn't invent anything new here. I just want to chronicle my progress in this journal to help me (and others, hopefully) improve my trading using Price Action and Tick Volume Analysis.

Subscribed Are you still using MT4 and Oanda? And which volume indicator do you use?

Thanks and all the best!

I am using MT4 as my main trading platform.

I will only trade EURUSD and USDJPY on 15m timeframe. I don't have preferred time of trading.

My chart will primarily look like this


I am using MT4's Candlestick and Tick Volume. I also added SonicR's Access Panel and FFCAL News just to be aware of what trading session I am now and with the incoming news releases.

PATVA00001: 13JUN2016 EURUSD (2 SHORT TRADES)


Daily Chart
Let us start at candles a, b and c. After a huge move up on 03June, a doji (candle a) appeared with a significant tick volume. This alone signifies weakness at the moment. The price at candle a failed to break the psychological price level (1.1400) and went back where it opened. Another doji appeared the next day. It was almost the same scenario as the previous day but with significant decrease in the tick volume. It showed that there were no more bulls interested in this price range. Candle b confirms the weakness of the currency pair. At this point a short trade can be executed, which I did, but not shown on this chart as I will be reviewing/journal-ing trades starting 13Jun. Candle c closed higher than the previous days but failed to break 1.1400 and look at the volume, it is almost the same as with the previous day. If this were a valid move up I should have seen a higher volume, which I did not. Candle c is another confirmation that bulls have no interest on higher price level.

Falling price candle 1 and 2 with increasing tick volumes is a valid move down. It shows heavy selling at this point so I took a short trade. This was a terrible decision I made. I should not have taken that short trade yet as I should have reviewed the price action and volume in lower time frames first. The price went up around 50 pips on candle 3 but not enough to trigger my stop loss. Candle 3's tick volume is not higher from candle 2 which means the market is still interested to go down further.



4HR Chart
This was the terrible decision I made. I entered a short trade on a doji (candle 1)and hammer (candle 2)with increasing volume which signifies bullishness on 4hr chart. Bullish candle appeared (candle 3) with even higher volume. This confirms the price is interested to go higher; which it did. But candle 4 made me stay at the trade. Bear candle (candle 4) with even higher tick volume made me think that the price is still interested to go down. Candle 5 went up but failed to break psychological price level (1.1300). After candle 5 are tweezer tops which failed to go up confirms weakness at this level.

I decided to close my trade after gaining 30.5 and 28.2 pips.

After a loooong break from fx trading, I am now ready to journal my trades. I will be posting all my trades from July 1.


To God all the glory!

Yep... To God be the Glory, you've really done well sir, with the ones I could see.. It'd be nice to also seeing your journal.

Trading forex for 8 years, I have learned the following:

1. I don't need fancy indicators to analyse any chart
2. One instrument is enough for me to make good return (now I only trade GOLD)
3. I don't need high tech hardwares like multiple screens and complicated softwares (am trading using MT4 on my iPad and iPhone)
4. Risking too much is the best way to blowout my account fast
5. I cannot predict the market movement
6. Patience is the key
7. And the best of all, always be thankful to our Lord and always ask for His guidance in everything I do.

Hi, which Timeframe do you trade with? 15M, 30M, 1H, or 4H? Thanks in anticipation.

Trading price and volume requires to check price action and volume on ALL timeframes. Lower timeframes will send me early signals of reversal. Higher timeframes will confirm these early signals.

July 1 - July 6 Trades

4HR Chart


1HR Chart

July 8 - July 12 Trades

4HR Chart


1HR Chart

July 15 - Jul 19 Trades

4HR Chart

Attached Image (click to enlarge)

30M Chart

Attached Image (click to enlarge)

July 22 - July 26 Trades

1HR Chart

Note to self.

All above trades were analysed using Price Action and Tick Volume with the help of support and resistance.

All timeframes were considered from daily up to 1 minute chart. Lower timeframes shows early signs and warnings of reversals. Higher timeframes from 30m to 4hr confirmed the early signs in lower timeframes.

Price actions and patterns usually appears on a support and resistance levels.

July 29 - August 2 Trades

Daily Chart


4HR Chart


1HR Chart

Actually, I'm a fan of your trade and the your Patience even in times of XAUUSD crazy rallies last week and early this week was interesting.

So I'm asking if you can share any resourceful materials on your strategy, i.e The price action and Volume analysis.

You can start with Anna Coulling's books. In my humble opinion, everything you need to learn about fx is in her books.

Then a lot of practice. Thousands of hours reading and analysing charts not to mention sleepless nights.

A lot of failures and learn from them.

And after all the hardwork, always ask for guidance from Almighty.

Also just to make clear, I am still learning and always make mistake. That is why I want to chronicle my trades to learn from them.

First Friday of the month. Need to be very careful and manage the risk wisely.

August 1 Trades

4HR Chart

Attached Image (click to enlarge)

1HR Chart

Attached Image (click to enlarge)

Overall Outlook on XAU

Daily

Attached Image (click to enlarge)

Attached Image (click to enlarge)