Skracor's Thoughts and Journal of Trading

I think I can explain the zones a little more clearly today as there is clearly a correlation between price turning in areas that it has turned before.

It occurred to me that these zones must signify an area where the price became very 'cheap' or 'expensive' respectively. When price pushes into one of these areas a decision has been made(possibly) that "I like the way this is going(i.e. trend) and I need an area to target my entry to continue with the trend" after this thought is made there comes a confirming though "If I were to enter at this area, that I believe is inexpensive, I stand to make a R:R of 1:1 or better" so these areas where price has turned in the past are looked at for future decisions(IMO).

But, this is not a hard and fast rule I am suggesting. I am looking to these areas as possible turning points with very good R:R if you target the next area in the trend.

Soon I will be posting a complete detailed account of my trading strategy so far. The reason being... I need more accountability to only take the trades that I see as most profitable for me. I have been very lax in this responsibility for the last while and I want to get back to improving my trading.

Today actually wasn't bad. I followed all my rules and came out with +42pips. Not bad but I want to repeat that success many times over. Pevious weeks have been a slow but steady decline in my account which has been very frustrating to say the least, but I would attribute that decline to loose rules and even looser trading, and you know what they say!

So its time to buckle down and get to business.

I did not trade yesterday. Reasoning being that it was the US holiday and living in the US I know that our banks are very much closed. I thought the market would be very quiet just like the other years I have tried to trade that day. Oh well, good job to those that traded anyway and made major pips on that nice volatility.

I did however do some major work on my trade plan in writing down my thoughts and organizing them into a step by step plan that can be easily understood and followed. It is nearing completion and I will be posting it very soon, in sections I think. Shouldn't be more than a few posts long though.

Okay for today I see that GBP/USD momentum has all been south! I see quite a lot of strength at the 6300 level will look for signs of a possible move up to retest some areas. Turning points that I am seeing to the upside are 6450, 6500, and 6650. There are several other S/R in the way of that move also, but these are the areas where price has broken through and not yet retested to see if they will hold so they will hold far more weight than the others.

took a trade long on Cable 6393 to 6402 +9pips

going to be done for the day as I am tearing down a garage and cannot put in the full amount of time that I usually do.

looks like there is a possibility of a retest of 6300, and if it gets broken should see a test of 6120. 6120 area could have a very nice bounce but we shall see.

good pippin to all!

So far today:

GBP/USD short from 64825 to 64478

+34.7pips

No rules violated, but that doesn't mean my discipline will hold(hopefully it will).

Trade Plan Overview

I. Map the Trading area using S/R and TLs in a couple thousand pip range.

II. Identify current Trend and Trend Strength.

III. Gauge the Strength of the nearest S/R areas.

IV. Identify the most likely Turning Points.

V. Take Entry in the direction of the Trend.

VI. Manage Trade until completion.


Note: Each section will have its own posts and accompanying pics. Also, notice how all the 'work' is done before the entry is taken.

Grr! So very mad at myself!

Rule violations everywhere to the tune of -52pips!!

Only redeeming thing about today is that I didn't let them run against me too far and was able to cut them, but not without much chagrin!

I was reminded that: when a strong Trend meets a strong S/R its time to sit aside and wait for the decision to be made. And more often than not the strong Trend will win out over the strong S/R.

Okay... I'm back now. I have been moving my account around and have left the MT4 live account behind. It is a wonderful platform for charting but the execution for my trades has been just terrible. Not to mention the wide spreads, but on to other matters.

Its time to trade again!

Took 11 pips from the loonie Shorted from 1.06155
This was a nice trade, no drawdown. Violated no rules and had no apprehensions about taking this trade.


So in the Breakdown of my thinking on this one: I began by looking at the H4 chart, and the last swing(minor highlighted) had been down so I was more confident about going short; as long as the M15 wasn't trending up (HH HL) which it wasn't. So I waited for Price to reach the Resistance on the M15 chart and noticed price had been there three times recently. Each visit of Price to this Resistance was followed by a strong bounce away from the Resistance so naturally I was thinking this Resistance is strong, but I did not enter right away. I moved down to the M1 chart for my entry: I wanted to see the Price begin to trend down on the M1 chart before I entered, and sure enough I started to see (LL LH) so on a candle that closed down in rejection of moving higher(Highlighted with a line through it) I sold and closed the trade 11 pips later.

Man PA on the Eur/Jpy today is UUUUUUUglYYYYYY!

Eur/Usd M15 starting to Trend down. Will begin to look for entries on a pullback. Will still be cautious about the rate decision later.

Looking for Cable shorts. There is weakness in the underlying Support all signs point to down, until one of them changes I won't go long.

Cable is at a crucial point. If it breaks below 6205 then retests the area and fails there will be much falling.

Ah can't let a pre-news breakout fool me though must be patient and see what happens.

Cable revisiting last weeks low!

Wow that special coin the Guru sold me really works!
Did I mention it has two heads!

(sniff) Ahhh... smell that early morning trading air! Been on the London open the last two days. Wifey has been working and I have been watching the little girl during the day, and I gotta trade sometime so here I am.

Looking for possible longs on the Cable from 6200 and maybe a little lower, weekly low sits at 6160ish

Looking for possible longs on the Eur/Jpy from 129.00 to 129.30

Looking for possible longs on the Gbp/Jpy from 145.80 region

Not real sure about Eur/Usd and Usd/Cad yet, German Ifo at 4:00 so will be very cautious about entering a position pre-news.

If we are to see more selling in the Eur/Usd today I would suspect that, at the news, stops from 4412 to 4425 would need to be taken out before the fall would begin.

Looks like German Ifo is a non-event.

So far the best opportunity I see for the next couple hours is on the Eur/Jpy cross. Looking for a failure at the current highs to have an entry short. Should be good to the 132.20ish area.