Daily Strategy Trading Journal - Trendlines, Candles & Channels

S/L on the Geppy shorts changed to 234.00 to protect our huge profits.

Our Swissy shorts are at around + 201 pips.
1.2350 seems resistance for now. I will be looking to add more shorts

No trades opened for cable and Euro till now

Stops not triggered yet on GBP/JPY trade and I am sitting on huge PIPS from last week. Currently 232 looks like support area. Certainly the momentum is on the downside. Looking for targets near 230 area

USD/CHF still open and no further SHADDING (short adding) on that

Activity on the Pound looks a bit chaotic so staying out of it for now

If I catch a few trades like these in the entire year I will be very pleased

My # of trades have reduced but increasing the profits.

The Geppy shorts were closed at 234.00 for a whopping profit of + 450 PIPS

New Trades open Sell AUD/USD 0.7884 S/L 0.7935 T/P Open

Sell NZD/USD 0.7009 S/L 0.7050 T/P Open.

Will close two lots at 0.6950 and let one puppy run

Planning to short Eur/JPY if i get filled at 158.40 area

Sell Cable if I get filled in at 1.9630-50 area.

Right now its looking that it might go up. But will stick to my rules

Total net Pips on the closed orders since last week

+ 378 PIPS

Current Open Orders

Swissy Shorts at + 210 pips
NZD/USD shorts at + 5 pips
AUD/USD shorts at + 34 pips

USD/CHF closed for a total profit of + 171 PIPS

New Trade opened Sell EUR/JPY 158.30 S/L 159.00 T/P Open

Sorry to clutter your journal.
Can you share your approach. Also, since you started journal, are you in net profit.

Thanks

Hi Tradestar,

My approach is very simple,nothing fancy in it and I do not use many indicators as well. I look for candle formations and momentum of the market at that point. I believe in trendlines and they form a core of my trading. They have a magnetic effect on the price action especially the daily trend lines. According to judgement I place an order at the trendline support or resistance to test the waters. Thats always one lot with a tight S/L typically just above or below the next highest or lowest support or resistance on the line (thats judgmental). If i am in the trade and not stopped out I plan to add additional lots on the close of that days candle. If i believe the market is going against me for the first lot i take profit and again try to follow the existing trend. (The price action will certainly halt at the trendline resistance and obey the trend lines for some pips (50-75) and then it may reverse or go in the existing direction of the trend).
My yesterday's Short order on Eur/JPY was a classic example. I had placed it at 158.30. The market came to the trend line and like a stop sign halted there and reversed till the 157.50 area and then again went up ahead to the 159 area. I closed my shorts for +45 pips. And am long again with the trend.
Same story happened with my NZD/USD shorts in the 0.7009 area.

Also the trend line resistance is more powerful on the third price hit on the trendline. In other words we have a new trendline forming on the dailies on the previous two highs or lows and when the price hits the trendline again the next time, probability is very high that the price action will obey the trendline. This concept can be very useful to take positions inside a bigger trend because the trend lines keep on changing. And guess what trendlines are always there to be broken and you can expect it any time after the third hit.
Also to gauge momentum of the market you can use a MACD histogram. The level of the histogram will tell you momentum in that direction and you can expect big price moves if all seeds of momentum are there. We need to be in a position before that. Also you can gauge the momentum by seeing the length of the candles. Many a times price flows inside a channel which are formed by the price action in the past. Typically the center line drawn inside the channel is the first target and then the next target is the channel trendline.
Also i sometimes place Linear regression indicator to get the sense of momentum and direction of the market

Please feel free to ask more questions if you have

Closed Eur/Jpy shorts for +40 pips of profit and NZD/USD for + 20 PIPS

Aud / Usd shorts are in the negative territory of -10 pips

Did not place any new trades for the last few days. GBP/JPY train had already left when I arrived at the stations

Sell USD/CHF 1.2207 T/P Open S/L 1.2260