My Trend and Range Journal

I've been watching the Forex Market for over three years now and I am finally finding what is working for me. I will try to post my trades in a simple format but will only show charts upon request.

I use a simple chart set up with the 4 hour time frame. I am mainly looking for bullish engulfing candlestick patterns near ideal areas. Near the 200 EMA in a trending market. In a range market, the pattern would need to be near previous support or resistance. Pretty simple!

Short GBP/USD
Reason: At the high end of range beginning in June
Trigger: Bearish engulfing 4 hour candle
Limit @1.6775
Stop @1.6850

Triggered
Short @1.6775
Stop @1.6850
Limit @1.6225

You pretty much have it but I haven't been trading EUR/USD. I trade on the 4 hour because its much more reliable to me and there is enough time to move my stop to entry and eliminate risk and/or take partial profit.

I scan through 18 pairs every and see which looks the best. I always wait for the candle to close and try to get in where the opening candle wicks.

Moved stop loss to entry
Stop @1.6775
Limit @1.6225

Partial profit taken at 1.6637 (+138) closed 2/3 of the trade
Stop @1.6775
Limit @1.6225

The major currency pairs had many false signals over the last few weeks. Is this a time for range trading or a time to step away?

Maybe it's time like you said to change trading styles to more of a range-bound market technique rather than a momentum/trending strategy.

I would rather the markets be trending, because the system I use works best in trending environments, however I have the ability to adapt to the current market conditions and play off momentum spurts.

To be successful in the current market environment its almost a "catch as catch can" type of style, (scalping) looking for momentum spurts with momentum and getting in and getting out when current momentum stalls.

What are your thoughts? Do you have a system that works in range bound markets?

Jeremy

In a range, which we could be in now, I would look for bullish engulfing candles at the bottom or bearish engulfing at the top.

The trade I placed this week was a range trade. GBP/USD had a bearish engulfing pattern at the top of a range extending from June.

This week I will be looking primarily at the hour charts to time entries off strong momentum. I won't be looking to stay in the trade that long, capture 50-100 pips if strong momentum exists to do so. Today was a very choppy market, hopefully we will have some (intra-day) momentum later on this week.

Jeremy

1/3 of the trade stopped at entry

I do not plan to get back in nor do I plan on getting in on anything else soon. The false signals continue to come and there doesn't seem to be anything very obvious on the 4 hour charts.

Long USD/CAD
Reason: The majors are reversing in sync and the best of them appears to be USD/CAD. It showed a change in the 4 hour trend last week with some higher lows which were invalidated on the 9th. This provides an even better place to buy if the reversal continues.
Trigger: Spinning Top 4 hour candle while other majors are weakening against the USD.
Entry @1.0435
Stop @1.0410

Triggered
Entry @1.0435
Stop @1.0410
Open target

Too much of a struggle...should of been taking off by now.
Closed at +3

Short GBP/JPY
Reason: Triangle break retest
Trigger: Friday Asian session
Entry @149.73
Stop @150.13
Open Target

Target @ 145.00
Jan 23 low to the Oct 7 low projection could create a higher low above 143.00

Short GBP/JPY Result -40
Back in with a short @149.73
Stop @150.53
Target @145.00

Closed at +7 before trading ended yesterday

Up about 6% for the week of Nov 9th - Nov 13th

Short USD/CAD
Reason: Market gap over the weekend - other major pairs showed gap in the direction of USD weakness while USD/CAD did not.
Trigger: Sunday open
Entry @1.0536
Stop @1.0556
Open Target