On My Way To The Top

Ok so we all are here to try and improve and be successful at this business so I've decided its time to start a journal of some sort to attempt to track my progress as I do believe with each market day I am improving. I'm fairly new to this business as I've only been in this for about a year now but within this time I have acquired so much knowledge and I am very grateful to everyone out there who have been so kind as to share all the information they have in the form of these threads and even other people who have started journals of their own for us to all see and learn from. When I first came to forex factory I discovered a thread from a user by the name of Spudfyre and although I never actually got to speak to him myself, I would say that he has been a great mentor and has shown me a great deal of how powerful the stochastic indicator is and as such it has become the main tool I use for my trade entries and in gauging market sentiment. Amongst other tools such as fibonnaci, support resistance, trend lines, channels, candlestick patterns, price patterns, and divergence I've managed to put together a strategy that seems to work for me pretty well and so with proper money management, risk management and trade management I plan to grow my trading account little by little and slowly become the trader that I know I can be.

Here is an example of divergence entries that could be possible on a weekly chart as I'm in the process of trying to develop a nice profitable and simple long term strategy utilizing the same concepts of my intraday trades and this just shows how easy it is to make money in this market but we as traders complicate things with our trade psychology and mindset...

And now here are examples of just the MTF stochastics lining up for a trade entry with no other indies but mma for visual and I still always set my trades to break even after ten pips so I can enjoy stress free trades which usually have little drawdown...so that way the risk to reward is to my liking...these set ups are just the first part now when you take this with divergence and off of a support or resistance zone than you increase the percentage of an edge that is already highly in your favor...

We also need to consider the fact that the higher time frames are what the big banks and institutions that move the market are doing so we need to pay attention to confluence of support and resistance especially at these levels...in this example is the eur usd on the 4 hour chart at a 161.8 fib extension level which is confluent with price hitting the top of an upward channel and also price is at a resistance level and price is creating doji's at the daily high of the previous trading day.. (candlestick patterns are another thing we must pay attention to especially around these areas of confluence which often refer to as PRZ zones while others may refer to them as PPZ areas...you can disregard the stochastics in this picture as they are mtf and this timeframe is too high to display them properly but I just took this picture to display the price only...

In this picture this displays an entry with a possible place to add to position and you will see two pull backs in which only one is marked off and not the other...the one between the second and third vertical line is not valid because the 30minute stochastic is turned down while in the third vertical line pull back all criteria is met with 1 hour overbought 30 overbought and 15 pulling back with 5 minute stochastic indicating a nice pip move...

hi pmullin86,

Great you started your own Journal. This will keep our threads cleaner.

I wish you all the best.

I will track your progress

Cheers


BTW: I noticed you use Spud's Rope: In case you also dislike the whole lot of useless values distracting on the top of the indicator window - I did a simple stoch which does not plot any values for that purpose.

I attach it in case you want to check it out.

Hey MJ thanks man I really appreciate the indicator that you sent me and I really appreciate you stopping by...Please feel free to stop by anytime with any input you may have as I'm always willing to take in information that might help me to grow and I will definitely do the same thing for the journal that you have created yourself...

Cheers

As I stated earlier I am looking into a method to trade long term trades that can be held for longer periods of time like a few days to even weeks if necessary. For the past couple weeks I have been working on this but after today I have picked apart my intraday strategy and come up with a simple method to trade these longer time frames using just a few tools those being the moving averages, osma for divergence and trend line confirmation and the stochastic rope for clear direction and strength of the move in that particular direction. Stops I'm still working on but for the four hour it seems as though a one hundred pip stop may work although I'm still gauging the amount of drawdown per trade and so I will be forward testing this in a demo account to determine appropriate stops and the average drawdown...so aside from live trading I will also be demo trading this longer term method as well and logginf my results here with the percentage of losers to winners average drawdown and average risk to reward ratio. Looks like a busy next few weeks but I'm figuring if I can lock on profits from the intraday level and the long term level in a month than it would be maximizing potential profit percentage for the month...but I will see through my forward results.

Hi pmullin86 and thx for your system, I would like to know if you can post your indi and template so we can tryyour system... thx Max

No problem max I can do that but which template would you like...the long term or short term or do you want me to post the templates and indicators for both...

I would like to have both please...I will follow you.. thx Maximus

Alright I'm currently mobile but have no problem posting the indies I use and the templates and everything but will have to wait until I get on my computer in a couple of hours...but I appreciate you checking out my journal and you should definitely drop by with some screen shots

Hey maximus2005 again I'm flattered by your interest in my strategy so as you requested here are the indies and templates for you and anyone else who may also have an interest...any questions feel free to ask...

p.s. if your broker uses the sunday candle data than you will notice that the fib pivot is close together and will not be calculated correctly until the close of the next day but if your broker doesn't incorporate the sunday candle you should be ok...

Paul

Price seems to be showing bearish divergence on daily and 4 hour and hourly chart right at the top of an ascending channel which is confluent with many fib levels and a daily resistance level along with the stochs being overbought looking like they may top over on both the 4 hour and the daily chart showing we may have a nice sell off...on the daily chart the highlighted area shows the area of confluence and potential reversal area...and h4 is reflecting the same thing with the price stalling at the top of the channel with bearish divergence and stochastic overbought seeming to turn over along with small candles...the only thing that seems an obstacle at this point is that price is at the bottom of the ascending channel on the h1 chart and also hitting the rising trend line on the h1 chart with the previous h1 candle close being a pin bar off the bottom of that channel and the rising trend line...i do put a lot of weight in the hourly pin bars so that is just something I look at as a heads up in looking for a trade signal on the 5 minute chart...price also seemed to wick off the daily high of friday which adds to the confluent area...

ok here is a possible short entry I missed this evening but it's ok as I don't really trade too much of Asian session anyway but this is a really good set up I would have taken...reasons for entry on this are...

1.) bearish 123 pattern
2.) bearish divergence
3.) short term ema's crossed below long term ema's
4.) price closed below all the ema's
5.) test and fail of 76.4 fib level
6.) 5,15,30,1 hour stochs heading down
7.) lower timeframe(ltf) stochastics converged with stochastic wall
with higher time frame(htf) stochs converging and down also
8.) test and fail of ascending channel line


take note of the 4 hour still in the overbought so this could keep price back a bit unlike if the 4 hour were oversold or just flat somewhere in between...this move would have been good for about 16 pips with a 10 pip stop so thats a risk reward ratio of 1:1.5 and it turned into a free trade...stop is where the first white horizontal line is and break even point is second horizontal white line...

entry rules met for short entry

Scaling in on UY.
$10.80 per pip now.

Sorry I was wrong about the daily flip of the Gann. It didn't happen yet, but I expect it to happen in the London session.

Shamu

I forgot the chart.
Average buy now 82.36, target 83
Current pending loss 14 pips.

Missed this trade but just another example of an entry real time...

Yes thx pmullin86 I have downloaded the files and I did my first trade with it, 35 pips... Max