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Stylish Trading Journal

  • #1
  • First Post: May 17, 2008 7:04am May 17, 2008 7:04am
Dear All;
The aim of this thread is to share my live trades with FX professionals around the world. I've four years of FX experience and I've been through many trading systems and strategies that have failed to suite my trading style. Currently, I figured out that the way that suites my style is the way that rides the market forces either selling or buying in a swing trading pattern. My style is 100% discretional and I rarely use indicators because I believe they are lagging and cost lots of eventual losses. I simply watch market reactions around support and resistance level. Market reactions are revealed through carefully watching candlestick patterns near these levels. I only trade using the 1hr and 4hr charts, however, market reactions on a daily chart is indicative to market directions. I'm only focusing at the moment on three pairs EUR/USD, GBP/USD and USD/JPY, however, I believe that if you get the point out of this thread, you will be trading whatever pair you like.
My charts would display LINES and LINES only. These lines are listed in a order of importance decrease as follows:

  1. Support and Resistance lines e.g. Trendlines - Channels
  2. Daily (1hr) and weekly (4hr) pivots
  3. Fibonacci Levels

In every trade I'll be posting the FX...WHY? concept which is the reason behind taking or leaving a trade. If I don't logically answer the FX...Why? question in my mind, then I don't trade. This answer should explain entry point, stop loss point and trade progress.
A trader using my style should be well oriented with candlestick pattern formations. I believe my style is very profitable, however, i don't like attracting people using big profit pips, but you will figure out yourself how could this be profitable for you.

Your thoughts and ideas are very valuable for me.

  • #2
  • May 17, 2008 8:27am May 17, 2008 8:27am
Even though I trade the 5M, I am very interested in your almost naked chart approach. I thank you for the opportunity of watching your style. I will be happily reading your journal.

Good luck.
Empty as water and soft as a facing wind mountain
  • #3
  • May 17, 2008 1:42pm May 17, 2008 1:42pm
My first chart would be on 1hr USD/JPY. This chart belongs to last week activity.

Trade No. 1 ........ Bullish englufing on rejection from a major support level on the 4hr chart. Exit happens near the 38.2Fib on watching a Doji star. Profit 105 pips.
Trade No. 2 ........ Bullish Doji star on a rejection from a previous support level. Exit happens near the 61.8Fib on watching a Doji star. Profit 89 pips.
Trade No. 3 ........ Bearish engulfing from a short-term trendline. Exit is defind as the price 104 (previous broken level) with 71 pips profit, however, for the purpose of this trade, it is still openned until I see a confirmation.

In all trades stops were placed 35 pips away which is a small modest loss in comparison to the return.
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY.GIF Size: 31 KB
  • #4
  • May 17, 2008 2:16pm May 17, 2008 2:16pm
Quoting abedewi
My first chart would be on 1hr USD/JPY. This chart belongs to last week activity.

Trade No. 1 ........ Bullish englufing on rejection from a major support level on the 4hr chart. Exit happens near the 38.2Fib on watching a Doji star. Profit 105 pips.
Trade No. 2 ........ Bullish Doji star on a rejection from a previous support level. Exit happens near the 61.8Fib on watching a Doji star. Profit 89 pips.
Trade No. 3 ........ Bearish engulfing from a short-term trendline. Exit is defind as the price 104 (previous broken level) with 71 pips profit, however, for the purpose of this trade, it is still openned until I see a confirmation.

In all trades stops were placed 35 pips away which is a small modest loss in comparison to the return.
Nice. If you allow me I would make some comments:

I do not use fibo, nor candles, so this is a different perspective.

1) Double bottom with a broken downtrend--> Long
2) HL in an uptrend together with first pullback --> Long
3) New downtrend (LH-LL confirmed after the third LH--> Short

So I would be doing the same trades...Nothing about fibo or candles in my comments just plain Dow Jones theory.

I hope my commenting here is Ok.

Good luck
Empty as water and soft as a facing wind mountain
  • #5
  • May 18, 2008 5:58am May 18, 2008 5:58am
Quoting luSan
Nice. If you allow me I would make some comments:

I do not use fibo, nor candles, so this is a different perspective.

1) Double bottom with a broken downtrend--> Long
2) HL in an uptrend together with first pullback --> Long
3) New downtrend (LH-LL confirmed after the third LH--> Short

So I would be doing the same trades...Nothing about fibo or candles in my comments just plain Dow Jones theory.

I hope my commenting here is Ok.

Good luck
Well, as long as you would take those trades, then we are on the same thinking pattern. However, I'm not familliar with the Dow theory and I just perform well with technical analysis on the mentioned time frames.
  • #6
  • May 18, 2008 6:34am May 18, 2008 6:34am
The following chart is an excellent trade setup on GBP/USD using both 4hr and 1 hr time frames.

The trendlines shown on the screen shot is made on a 4hr chart which represents a down medium term trend. Note the long wicked doji near the down trendline. This indicated a market nervousness and possible reserval. The confirmation didn't happen in the next two hours, however, the third hour showed a bearish engulfing after briefly touching the trendline. This initiated a short trade with a stop loss at the previous high and a target profit at the previously broken medium trendline.

This trade created a 240 pips in profit.

I move stop loss level to breakeven when the trade is 50 pips in profit and I don't trail after that till I see a reversal warning (most common) or hit at no loss (which rarely happens because a force moving 50 pips against you is always noticable!!)
Attached Image (click to enlarge)
Click to Enlarge Name: GPBUSD28April.GIF Size: 24 KB
  • #7
  • May 19, 2008 7:26am May 19, 2008 7:26am
My trading approach has the following advantages:

  1. The accurate chart DISSECTION gives me different levels of relative price movements. At only those levels, I watch the market changing forces.
  2. This approach teached me for the first time in my trading experience to be patient until a force is revealed by price action.
  3. using other systems and indicators gave me lots of false and sequencially conflicting signals i.e. Signal Long and then signal Short within a very small time interval. My approach teached me to always trust the FIRST signal, no matter the price retraces to the loss zone. This largely removes psychological stress during trading.

The disadvantage about this approach is that it requires a dedicated time for market analysis and relative forex experience.

  • #8
  • May 19, 2008 2:56pm May 19, 2008 2:56pm
This is a very good trade setup for today according to my approach. On the attached chart note the two lines drawn on the 1hr chart. The resistance line is made from the 4hr chart and the support line is made from the day chart.
Note the market reaction at the resistance level, an almost bearish engulfing pattern occured. This level was packed with the daily pivot R1 level too which makes it a significant reaction to me.
Entered short at 1.9565 with a stop at 1.9615 (50 pips) and an profit hypothesis at 1.9380 (185 pips). The trade evolved at the correct direction and reached an initial profit target of 1.9480 (85 pips profit). Price stalling occured (reddish eclipse) and I moved stop loss to breakeven and closed half on my position.

I've a very strong believe that cable would continue its way down because the day chart is almost showing a bearish engulfing day. I'll only watch for possible stretching back tomorrow.
Attached Image
  • #9
  • May 19, 2008 3:22pm May 19, 2008 3:22pm
Another trade today for the USD/JPY using the same approach.

Long @ 103.90 , stop @ 103.60 and profit @ 104.65

I believe that this trade was a bit risky becuase it relies only on short term trendlines on the 1 hr chart and entry was away from a daily pivot level. But it worked good and resulted in 75 pips.

This tells us that the market force approach is less effective on lower time frames.

Nice profit for today.

Note. The same pattern occured today of EUR/USD but I couldn't take it because of money management.
Attached Image
  • #10
  • May 21, 2008 3:14am May 21, 2008 3:14am
Quoting abedewi
This is a very good trade setup for today according to my approach. On the attached chart note the two lines drawn on the 1hr chart. The resistance line is made from the 4hr chart and the support line is made from the day chart.
Note the market reaction at the resistance level, an almost bearish engulfing pattern occured. This level was packed with the daily pivot R1 level too which makes it a significant reaction to me.
Entered short at 1.9565 with a stop at 1.9615 (50 pips) and an profit hypothesis at 1.9380 (185 pips). The trade evolved at the correct direction and reached an initial profit target of 1.9480 (85 pips profit). Price stalling occured (reddish eclipse) and I moved stop loss to breakeven and closed half on my position.

I've a very strong believe that cable would continue its way down because the day chart is almost showing a bearish engulfing day. I'll only watch for possible stretching back tomorrow.
The rest of the position was closed at 30 Pips profit after prices retraces back
  • #11
  • May 22, 2008 11:52am May 22, 2008 11:52am
Very nice bullish engulfing near a strong support line and Daily S1 level.
Position openned @ 102.85 stop @ 102.55 and profit 104.
Note how the price penetrated a short-term trendline and stayed above it then continued its target medium term-term trendline. Profit pips = 115
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY22May.GIF Size: 28 KB
  • #12
  • May 23, 2008 7:27am May 23, 2008 7:27am
The following trade is made on a 1hr chart following the formation of a star after briefly touching a support line. This star was confirmed by the next bullish candle. It was interesting that the 4hr chart confirmed the trade direction by the formation of a bullish engulfing pattern.

Trade long @ 1.9665 stop @ 1.9615 and profit @ 1.9850

This trade was closed yesterday evenning with a profit of 185 Pips.
Attached Images
  • #13
  • May 23, 2008 7:45am May 23, 2008 7:45am
The attached EUR/USD trade was entered short upon the formation of a bearish engulfing pattern twice. I enetered on the second formation. Trade evolved at 60 pips profit and stop was moved to breakeven.
This trade closed today at breakeven.

Entry, stop and profit are mentioned on the chart
Attached Image
  • #14
  • May 23, 2008 8:21am May 23, 2008 8:21am
I see your love of candles applied to forex. Just recently Bulkowsky published a statistical analysis of the candles as per their stock performance. He showed that several of them might not be so hot as claimed.

I wonder if somebody have done a similar study for forex....Or are you assuming that they behave as they do in the security market?
Empty as water and soft as a facing wind mountain
  • #15
  • May 24, 2008 10:53am May 24, 2008 10:53am
Quoting luSan
I see your love of candles applied to forex. Just recently Bulkowsky published a statistical analysis of the candles as per their stock performance. He showed that several of them might not be so hot as claimed.

I wonder if somebody have done a similar study for forex....Or are you assuming that they behave as they do in the security market?
I don't assume all candles are right, but most of them are. I don't tade the Asian session, so eligible candles for entry at that time are not taken. Besides, I don't take candles of body range less than 25 pips. Remember, I seek the birth of a market force and I'm ready to reverse trades whenever confirmed. Very minor trades are recorded as LOSS, average trades are closed are breakeven and most trades are closed with a profit.

For a saver mode, a trader could use the same technique in view of the larger trend direction, which means that counter trend trades are not taken.

The conclusion is, this trading is discretional and requires certain level of market experience.
  • #16
  • May 29, 2008 5:08am May 29, 2008 5:08am
This trade was openned yesterday and closed a minute ago. Note how the price was rejected from a previously tested down trendline. Bearish engulfing occured and a short trade was initiated. Note how the price penetrated the support trendline and continued down. I closed the trade at 50% Fib level of the larger move upon the formation of a bullish star and possible position long (we'll see the next hour)

Trade short @ 1.5715, stop @ 1.5775 and profit @ 1.5575

Profit = 140 Pips
Attached Image
  • #17
  • Jun 2, 2008 2:34pm Jun 2, 2008 2:34pm
This trade was openned late during friday. Note the bearish engulfing near a strong support line. Entered short @ 105.55, stop placed @ 105.90. The trade evolved to the profit trendline and closed @ 104.10.
If I were rushing I could have closed this trade upon the bullish candle at dailt S1 but according to the trading rules, I tend to trust the first signal.
Attached Image
  • #18
  • Jun 3, 2008 12:37pm Jun 3, 2008 12:37pm
Today's trading was a suspense fun. Two winning trades on EURUSD and USDJPY and one losing trade on GBPUSD with a total of 223 Pips.

The winning trades follow the same rules of my style as shown on the attached pics.
The losing trade was fine according to the rules however, market volatility stopped the position out. Entry was made on the rectangular zone on showing a bearish engulfing from the daily pivot level. it's very surprising how the market turned to the predicted way after the position being stopped. This proves the realiblity of candlesticks.
What I'd like to share here is the few conflicting candles encircled with an eclipse on the pic. Non of these signals were taken becuase they are not happened near a significant price level. This is a filter for many tardes depending on candle patterns.
Attached Images
  • #19
  • Last Post: Jun 5, 2008 11:00am Jun 5, 2008 11:00am
This trade is an excellent setup. Note the bullish engulfing from the daily S2. This created a long entry signal @ 1.5410 and stop was placed @ 1.5355 with a profit near the hr chart down trendline @ 1.5550. Fortunately the trade went on my desired direction after a quick volatility and almost stopped, but it didn't. Although trade closed with 140 Pip Profit, one could continue to target the weekly pivot point.
Attached Image
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