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Damion's Tribute

  • #1
  • First Post: Edited Feb 19, 2010 8:17am Jun 5, 2009 2:42am | Edited Feb 19, 2010 8:17am
The purpose of this thread is to keep a journal of my trade ideas and for those who are interested in my trading to discuss and learn.

My interest began more than a year ago, spent a couple of months dwelving into all aspects of technical analysis, read a number of trading books, tried a couple of systems on ff forums with a demo account and blew one live account. I have been trading 'live' for almost 11 mths now. While I am not making a living out of forex trading (I trade mini lots), I have been consistently profitable. This was only possible because I came across a really good thread on ff, and was fortunate to learn from a terrific trader, damion.

The trading method is simple. There will be no indicators, although I do observe the stoch/macd at times for divergence. The technical tools and techniques I use include trendlines and classic TA patterns. I trade mostly the majors on all timeframes.

In the next few posts I hope to share a few of my open trades. I do not trade very often, alot of my decisions depend on opportunity and market conditions. There are times when I don't trade at all for weeks.
  • #2
  • Jun 5, 2009 7:51am Jun 5, 2009 7:51am
I will begin with the latest trade that closed today, this was a trade I took on NZDJPY yesterday. I also took a lost on a long position wih GBPAUD.
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  • #3
  • Jun 5, 2009 7:55am Jun 5, 2009 7:55am
Trades with open interest. There are still a few more which I have been holding onto for a few weeks, eg. is GBPCHF. short position.
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  • #4
  • Edited 4:59pm Jun 7, 2009 4:32pm | Edited 4:59pm
Hi Soyabean,

I loved the DRA system as well.

Thought I would join you by sharing.

I have only just started with a few pairs. I would like to share a few probable set ups yet to be traded.

I have demoed these trades and intend to trade them on a small account with micro lots. Depending on my results I will consider trading on a larger account then.

In the meantime, I have a lot to learn.

Thank you Soyabean.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD - 8th June 2009.jpg Size: 124 KB
AFTAB Time Will Tell & Price Will Show
  • #5
  • Jun 7, 2009 5:25pm Jun 7, 2009 5:25pm
Hi,

Some other trades I am also looking at are:

1. EUR/USD to go long - on the confirmation candle if R/R allow

2. AUD/USD - will wait to see how price reacts - my expectations are:
a. It could break the current trendline - then I might trade it on the retest - SHORT.
b. Would break the uptrendline and then would go LONG on the test of the trendline.
c. If a confirmation candle and R/R are go - if it gives a signal on the current trendline - however, I am thinking of letting that trade go.

3. EUR/GBP - this would be a nice long or a short trade if R/R given after the confirmation candle are good enough.

Please excuse the dates - these are Australian dates.
Attached Image(s) (click to enlarge)
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AFTAB Time Will Tell & Price Will Show
  • #6
  • Jun 12, 2009 8:48am Jun 12, 2009 8:48am
Hey

Sorry I havent got the chance to get a good look at ur charts, i have been away.

I have reenteered AUDNZD trade.
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  • #7
  • Jun 13, 2009 11:00pm Jun 13, 2009 11:00pm
Soyabean,

Would you please have a look at my chart and tell me if this is the way you project your stop loss and profit targets.

I have worked out the chart for the 1st trade.

Thanks.
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AFTAB Time Will Tell & Price Will Show
  • #8
  • Jun 14, 2009 5:54am Jun 14, 2009 5:54am
Quoting aftab
Soyabean,

Would you please have a look at my chart and tell me if this is the way you project your stop loss and profit targets.

I have worked out the chart for the 1st trade.

Thanks.
Hey aftab,

Very nice understanding of our trading method, entry of the bearish engulfing using the back of the uptrendline as resistance. I would have taken the trade with the same TP as you did and a slightly wider SL at the previous high.

There are other ways to select ur TP though, so long as it is more than 1:1.5 RR and that you have taken the next support level into consideration.

Overall, great understanding.
  • #9
  • Jun 14, 2009 5:44pm Jun 14, 2009 5:44pm
Quoting soyabean
Hey aftab,

Very nice understanding of our trading method, entry of the bearish engulfing using the back of the uptrendline as resistance. I would have taken the trade with the same TP as you did and a slightly wider SL at the previous high.

There are other ways to select ur TP though, so long as it is more than 1:1.5 RR and that you have taken the next support level into consideration.

Overall, great understanding.
Hi Soya,

Will keep in mind:

1. Previous high when setting the SL; and
2. The next support level when determining profit target + the fib extensions.

Are you looking at anything else this week?
AFTAB Time Will Tell & Price Will Show
  • #10
  • Edited 12:33am Jun 15, 2009 12:22am | Edited 12:33am
Quoting aftab
Hi Soya,

Will keep in mind:

1. Previous high when setting the SL; and
2. The next support level when determining profit target + the fib extensions.

Are you looking at anything else this week?
Just to clarify, I do not always set my SL at the previous High, I like my SL to be protected at a resistance level. Clearly for the AUDNZD trade the resistance level was at the previous high.

I have a few other pairs that I am watching out for, will post my charts when I get home from work this evening. These are mainly the Aussie, Kiwi and Loonie pairs... i think we have seen some unprecedented gains in these currencies as global economic outlook brightens and investors are pulling their money out of the US. Commodities demand also drive these currencies. I am looking at some critical fib retracement areas and trendline confluences. Generally, the market is roaring and ready for some trading opportunities. Charts to follow.

Regards
  • #11
  • Jun 15, 2009 10:29am Jun 15, 2009 10:29am
I think we witnessed some strong price action today, will be looking for some reaction near the major trendlines.
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  • #12
  • Jun 15, 2009 3:50pm Jun 15, 2009 3:50pm
Hi Soya,

Thanks for the charts.

I am currently looking at a few currency pairs only and the EUR is one of them.

Chart attached.

Am I correct in saying that we would be waiting for price on the EUR to test the back trendline?

Thanks.
Attached Image (click to enlarge)
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AFTAB Time Will Tell & Price Will Show
  • #13
  • Jun 15, 2009 9:03pm Jun 15, 2009 9:03pm
Hi Soya,

I was just looking at your EUR chart.

Was wondering if you would take the trade at the evening star if the dup trendline was not there.

When reviewing the charts, it did work out to a rsik:reward ration of 1:1.

Thanks.
Attached Image (click to enlarge)
Click to Enlarge Name: 02 - Weekly Review - EURUSD - 14th June, 2009-2.jpg Size: 207 KB
AFTAB Time Will Tell & Price Will Show
  • #14
  • Jun 15, 2009 10:59pm Jun 15, 2009 10:59pm
Quoting aftab
Hi Soya,

I was just looking at your EUR chart.

Was wondering if you would take the trade at the evening star if the dup trendline was not there.

When reviewing the charts, it did work out to a rsik:reward ration of 1:1.

Thanks.
Absolutely! I was lamenting over the missed trade myself!

And you are also right that I am waiting for a retrace to the back trendlines for most of the pairs now.

Btw, I really like the trendlines you have drawn and the explanation on your charts. Obviously you already have a sound understanding of this trading method.
  • #15
  • Jun 16, 2009 12:44am Jun 16, 2009 12:44am
Quoting soyabean
Absolutely! I was lamenting over the missed trade myself!

And you are also right that I am waiting for a retrace to the back trendlines for most of the pairs now.

Btw, I really like the trendlines you have drawn and the explanation on your charts. Obviously you already have a sound understanding of this trading method.
Soya,

Thanks for your encouraging words.

I am understanding this method more through your charts.

Appreciate your charts.
AFTAB Time Will Tell & Price Will Show
  • #16
  • Jun 16, 2009 2:18pm Jun 16, 2009 2:18pm
Soya,

This is what I see probably setting up on the AUD/USD.

Please let me know your thoughts.

Thanks.
Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSD - 16th June 2009.jpg Size: 142 KB
AFTAB Time Will Tell & Price Will Show
  • #17
  • Jun 16, 2009 2:50pm Jun 16, 2009 2:50pm
Soya,

Still seems to be setting up. Is the down trendline that I have drawn valid?

Thanks.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD - 16th June 2009.jpg Size: 135 KB
AFTAB Time Will Tell & Price Will Show
  • #18
  • Jun 16, 2009 9:39pm Jun 16, 2009 9:39pm
Quoting aftab
Soya,

This is what I see probably setting up on the AUD/USD.

Please let me know your thoughts.

Thanks.
Hi, in setups like these I'd prefer to stay away.

A trendline that has been previously broken and then re-penetrated is dubious. What we are looking for are trade opportunities that are visible and obvious to many, esp the institutional investors. If there was indeed a 3rd touch at the top it would mostly form a triangle pattern suggesting consolidation.
  • #19
  • Jun 16, 2009 9:41pm Jun 16, 2009 9:41pm
Quoting aftab
Soya,

Still seems to be setting up. Is the down trendline that I have drawn valid?

Thanks.
The down trendline is not valid for the ABCD setup. We have to be patient and trade only the best setups!
  • #20
  • Jun 16, 2009 10:55pm Jun 16, 2009 10:55pm
Quoting soyabean
Hi, in setups like these I'd prefer to stay away.

A trendline that has been previously broken and then re-penetrated is dubious. What we are looking for are trade opportunities that are visible and obvious to many, esp the institutional investors. If there was indeed a 3rd touch at the top it would mostly form a triangle pattern suggesting consolidation.
Thanks Soya. Like I said, I am learning a lot from your feedback and I appreciate it.

Just for me to be able to get an insight into how you are thinking, when would you even consider getting involved with this pair?

Thanks.
AFTAB Time Will Tell & Price Will Show
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