DRICK's trading Journal.

Closed Short AUD/USD at 0.8790 with +14 pips. Reason: Initially did not break the trend line. See picture. Still open on Short EUR/USD and Short EUR/GBP.

Open trades:
Short EUR/USD at 1.4647 S/L moved to 1.4697
Short EUR/GBP at 0.7462 S/L moved to 0.7453

Regards,
Rick

Edit:
Just closed my Short EUR/USD position at 1.4636 for +16 Pips.
Short EUR/GBP still open
Placed Sell stop order EUR/GBP at 0.7410 S/L 0.7453

Closed my EUR/GBP position 0900 GMT at 0.7435 with +27 pips.
No open position and cancelled order.

Regards,
Rick

Well, after a bad start on January, I decided to examine what I did to come up with bad result:
1) I trade without checking what the daily, weekly and monthly are telling me.
2) I'm over trading.
3) Trades were triggered with out confirmation.
4) I enter a trade late after the price moved already.

Then another system started named OzFX. I got interested in the 4HR squeeze-more method on how one can enter a trade early before the pair move. The only issue was a filter to confirm a good and bad entry. I believe combining OzFx and EJ 4hour systems can complement each other. OzFX squeeze-more will give the signal and EJ method can give the filter...well, that's what I believe can happen. So, now I can use this journal to help me come up with a criteria to pull the trigger.

I did start a demo account this week and plan to continue until the result is consistent. My goal is to start real trading on April 2008.

Here is so far how the account looks:
Squeeze-More Strategy:
Start Feb. 25, 2007


Closed Trades:
2/25/2008
SHORT USD/CAD (+653 pips)
LONG CAD/JPY (+379 pips)
SHORT EUR/CAD (+423 pips)
LONG USD/JPY (+87 pips)

2/26/2008
SHORT NZD/USD (-150 pips) 3 lots

2/28/2008
SHORT EUR/CAD (-50 pips)
LONG CAD/JPY (-50 pips)



Open Trades:
2/29/2008
LONG EUR/AUD
1 lot at 1.6127 SL at 1.6077 (Current price at 1.6304)

I'll add more information this weekend on how I will combine both methods.
Rick

Here's how the chart looks like on my open trade: LONG EUR/AUD
I waited for the stochastic to go pass 50, AC and AO green, previous EJ trend bars are green, and the entry bar was blue. Daily stochastic was pointing up, indicating a bullish move. Entry is 1.6127 with stop loss at 1.6077.

The market is closed already and will adjust my stop loss to 1.6163 where the daily FIB of 23.6. I will be at work when the market opens Sunday afternoon, so, during London session, I will decide if I can add position.

Regards,
Rick

Since Stohastic oscillator is used, I need to understand it and how I could use it.

INTRODUCTION:
Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

USE:
Readings below 20 are considered oversold and readings above 80 are considered overbought. However, Lane did not believe that a reading above 80 was necessarily bearish or a reading below 20 bullish. A security can continue to rise after the Stochastic Oscillator has reached 80 and continue to fall after the Stochastic Oscillator has reached 20. Lane believed that some of the best signals occurred when the oscillator moved from overbought territory back below 80 and from oversold territory back above 20.
Buy and sell signals can also be given when %K crosses above or below %D. However, crossover signals are quite frequent and can result in a lot of whipsaws.
One of the most reliable signals is to wait for a divergence to develop from overbought or oversold levels. Once the oscillator reaches overbought levels, wait for a negative divergence to develop and then a cross below 80. This usually requires a double dip below 80 and the second dip results in the sell signal. For a buy signal, wait for a positive divergence to develop after the indicator moves below 20. This will usually require a trader to disregard the first break above 20. After the positive divergence forms, the second break above 20 confirms the divergence and a buy signal is given.

So, using the indicator as divergence and convergence, I will watch EUR/GBP as 4HR and Daily is showing Bearish convergence.

Regards,
Rick

EUR/AUD closed at SL:

Squeeze-More Strategy:
Start Feb. 25, 2007


Closed Trades:
2/25/2008
SHORT USD/CAD (+653 pips)
LONG CAD/JPY (+379 pips)
SHORT EUR/CAD (+423 pips)
LONG USD/JPY (+87 pips)
2/26/2008
SHORT NZD/USD (-150 pips) 3 lots
2/28/2008
SHORT EUR/CAD (-50 pips)
LONG CAD/JPY (-50 pips)
2/29/2008
LONG EUR/AUD
1 lot at 1.6127 Stop out at 1.6163 (+36)

Open Trades:
Long NZD/USD
1 lot at 0.8067 SL at 0.8000

Open trade placed with Squeeze-more signal, price bounced off 100% Daily FIB extension and price at 55 SMA. EJ bars were green and blue. Target at Daily FIB 161.8% at 0.8267.

Rick

Well, NZD/USD long went sour but yesterday afternoon place a short. Placed additional trades and adjusted SL today:

Open tardes:
3/3
Short NZD/USD at 0.8063 SL 0.8102 (-39)
Short AUD/USD at 0.9394 SL 0.9382 (+12)
Long USD/CAD at 0.9899 SL 0.9822 (-77)
Short USD/CHF at 1.0421 SL 1.0496 (-75)
Long EUR/USD at 1.5202 SL 1.5142 (-60)
Short GBP/USD at 1.9839 SL 1.9946 (-107)
Short USD/JPY at 103.47 SL 103.88 (-47)
Long EUR/GBP at 0.7662 SL 0.7625 (-37)

See you tomorrow,
Rick