Ordo ex chao (Order out of Chaos) - TheMonks path to Price Action.

This journal is to be my journey onto the path of Price Action.

This strategy is developing using a variety of sources.

I will use this to develop and update my trading template - any transactions i will take will be on separate posts.

As I am writing this post it will be updated on a regulary basis.

Type of Trader: I am a conservative trader hence the need to swing trading end of day, during 4hr or daily charts.

Income Target: 1% increase per trade (more information later)

3+ month aim: Plan the trade and trade the plan - im in this game for the long term. My monthly trading goal is to . achieve consistent profitability every month. The actual $/pip amount is not important at this stage (6+ month). The important thing is the consistency.

Markets: Spot Fx, using the E/U and G/U. I may add other currencies later on if needed.

Timeframes: Macro view on monthly and weekly charts. The trigger would be pushed on the micro charts - 4/hr and daily.

Broker: Alpari Uk for charting and execution.

Patterns:
1. Identify HH,HL,LL,LH trends on monthly and weekly. I will also use a 240WMA for general confirmation - this does not play an "active part" in the strategy.
2. Drop down to a lower timeframe.
3. Use a pattern (pin bar, 3 bar reversal, inside/outside bar).
4. Confluence factor: Round numbers, 50% fib, S&R

Trigger: I must have 3 or more factors in place e.g. price below 240WMA, making LL, LH, round number and a suitable pin.

SL: Top of pattern (more to follow)

TP: Trailing after 100pip (more to follow) or 3/5 bar follow.

Reference/Reading Material:

1. 3 bar reversal from a trader called stealthtrader from another forum (pic below)

Rationale:

Price above 240WMA
price made HH, dropped to HL and hit 1.53200 which is also the 50% fib (1.53314)

Put a purchase on at 1.53578

SL: 1.53060

TP1: 1.54300

Rationale: Price above 240
Saw a pin (well with reflection it is a "bad" pin - with no clear swing low.

Lesson learnt that the pin is in the shadows of the 11:00 candle

I put the SL a few pips lower the end of the pin and currently paying the price of my silliness and implusiveness to be "in the market"

Well lets see how it pans out (currently -55)

Edit:
As expected SL hit.
Lesson learnt: Review other candle formations as well before taking trade. The 11:00 long candle was a BIG clue as shown in pic!

Edit2: After more reflection the bar that i thought was a "pin" wasnt a pin by any defination - i was trade what i wanted to see rather than anything based on reality ! Lesson learnt - need a clear defination of using a pin - schoolboy error !!