Test-1

Hi Guys
This journal is for my own reference.The method I am posting is still under testing.Please,feel free to try this if you guys can understand it.I am posting this journal in order to keep track of my thoughts.

Aim:
I want to be a position trader but this doesn't mean that i don't take short term trades.I will take both long term and short term trades.


Philosophy:
1)Cut your losses as early as possible but let your profits run.
2)Save your capital so that we can fight for another day.
3)If you loose more than 30% of your capital then stop trading.
4)Don't panic or get excited when you,let the trade take you to your destiny.
5)Not less than 1000 pips per week as growth is an achievement but aim is to achieve 10000 pips per week as growth

Long-Term Rules:
Rule1:
Rules are not to be broken.This are not the rules laid by government but this rules are laid by oneself so No breaking the rules .Do or die.Be a Million Dollar Baby.Achieve what you want.
Rule2:
Price should obey the rules universally.It doesn't depend on any time frame.As we know 200 EMA is used by many traders so our aim is to take a look at 200ema.
Step-1:Look at 200ema in monthly see whether price is above 200 ema or below 200ema.
Step-2:look at 200ema in weekly time frame see whether price is above or below 200ema.
Step-3:look at 200ema in daily time frame see whether price is above or below 200ema.

We follow this steps for all the currency pairs and we will write down the price action on a piece of paper at starting of the month.We are more interested in pairs where there is contradiction in price action behavior in different time frames(egrice action is above 200ema in monthly and price action is above 200ema in weekly and price action is below 200ema in daily)As per the example there should be correction either in daily or in higher time frame.

Step-4:So,we look for this abnormal behavior and we look for weakness in candles i.e., pin bar,BEOB ,BUOB...ect.
Suppose as per above example we know that correction should happen either in daily(i.e., price should go above 200ema) or price should come come below 200ema in weekly time frame.
Step-5:Now we look for weakness in the trend i.e., we look for pin bar or BEOB in order to confirm that weekly trend is changing and it will make correction as per daily or we look in daily and see the weakness candles out there and confirm that this will make correction according to weekly.
This one of the ways i will define the trend.There are some more ways to define the trend which i will cover in the next post.

Cheers
Prakash

Mission:
This is my second year in forex trading.But,i have done my home work and read so many concepts.Had so many sleepless nights to come out with a holy-grail but there wasn't any.The only thing constant in trading is Trend.It either pay you or bury you.

My mission is to have a growth of 1000 pips per week in this year.At maximum,Loosing not more than 300 pips(300 for 1000 pips is better risk/reward ratio) per week on a single currency.Money is the only slave which can work for you 24x7.So,why don't we invest them in currency markets wisely let that work for you.

I will double my account only when i achieve growth of 1000 pips per week.Till then i will not double my account or loose more than 300 pips on a single pair.

There is no such thing as Free Lunch.You deserve food or anything only when you have accomplished your goal on any particular day.Which makes you happy.

The only devil that was haunting you in past,is haunting you in present and will be haunting you in future is YOU.

You are the main hurdle for yourself.So,stop blaming others and start working.Nothing is impossible even earning more than 10,000 pips growth per week is achievable(it doesn't require so much capital). just follow your rules and let your trades take you to your destiny.

If you want any future help then read Pipeasy's Thread "Building an Equity Millipede" and "Jankone M5 thread" for long term and short term trades respectively.If you don't understand it then read it once more.If not read it for 1000 times and they are worth of reading so many times.

I will continue with next post.

Bye.

My analysis for any currency pair starts from monthly and weekly.

The points i will note is
1)Flying Buddha(If you want to know more about Flying buddha then feel free to visit "Building an equity millipede")
2)Angle of 5/10 ema (whether are they very steep i.e., pointing towards 12'o clock or 1'o clock for uptrend and pointing 6'o clock or 5 o clock for downtrend and gap between them)
3)Pin bar and reversal bars(if you don't know about it then just start your home work)
4)Long wick bars(the story this wicks say you is that price doesn't know where to go if it is a uptrend then it is a sign of weakness of the trend and you can anticipate for reversal of the trend or retracement and vice-verse for down trend)
5)Look for price,whether it is above or below 200ema as i posted in post-1
6)round number(check whether price is near .00.here price either cut through round number like sharp Knife through bread and move towards another round number or else reverse back)
7)Divergence you get from RSI indicator.

These are the 7-important points we need to memorize before we look at the charts.Everyone can makes 10-20 pips but can he make 10,000 pip growth per week is a billion dollar question.

My strategy is after looking and analyzing pairs for the above seven rules in higher time frames(monthly and weekly) then i will select 2 to 3 pairs per week.
Now,i will draw lines at
1)open of Monthly candle(if my bias is from monthly) and also open of weekly and daily
2)open of weekly candle(if my bias is from weekly) and also open of daily candle.
Now,i will concentrate on my losses: daily i am ready to loose 60 pips on each pair so at maximum i can loose only 300 pips per pair on any given week.This is how i protect my account for the next week.

From the above analysis we have selected 2-3 pairs.Suppose there is downtrend in one currency pair which obey all 7-rules(which is rare) or most of them.As we drew lines at the open of the week and monthly opens.

This is very important,now we will enter at open of next candle on daily and keeping our s/l to 60 pips.

These are the scenarios:
1)price go strong towards my anticipated direction without any retrace.(Good)
2)price might retrace 50% or less than 33% of previous candle and go towards my anticipated direction
3)price might hit my s/l

If scenario-1 or scenario-2 happens then we will move our s/l to be and open another trade at the open of next daily candle.

If scenario-3 happens then we will loose 60 pips and we accept defeat.We will come back next day.or try scalping in the intended direction if possible.In order to cover our losses.As i told you it is easy to make 10-15 pips.

I will talk more in the next post.
I will try posting a chart.

Regards
Prakash

The uploaded chart is the monthly chart

Hi Guys...
This week analysis on GBP-JPY

Why I have choose GBP-JPY

1) Price is near major line(130.00)
2)Price has retraced less than 33% of previous weekly candle which is a strong move.
3) Price has formed strong downward bar with almost no upper wick which shows there is no resistance from bulls.
4) Price has formed double top and also inside bar.The last week it has broke the inside candle.
5) Price is in range for last 10 candles.We re more interested if price close below this bars.

So my bias for this week is Downward Trend for Gbp-Jpy.

In this chart, I am anticipating where price might retrace and will show us some sign of weakness such as reversal bar,pin bar, Bearish engulfing bar,Double top...etc

In this chart i showed three areas where price might show sign of weakness.
1)Is 50% retracement of previous down candle of weekly Chart.
2)Is less than 33% retracement of previous down candle
3)Just a volatile breakout without any retracement.

The above are the places where we are anticipating.

Now,in this 4H-chart you can see candle is away from 5/10ema(green and black) i.e., price has gone so far with out touching them which shows that price has formed flying buddha.so,we look for upward movement on Monday(retracement).

RSI(6) is showing Divergence this shows us an indication that this week will have some retracement may be less than 33% or 50% or doesn't obey our anticipation.Anything can happen but we will stick to our rules i.e., we will only go short when price shows sign of weakness.

This is my Eur-Jpy analysis

Explanation of given charts.

Why i chose this pair:

1) Price is near Minor Line(105.00)
2) Strong Down-bar formed and Price closed below the open of previous Up-bar(as i showed in the box).
3)Price retraced less than 33% and moved further with out any resistance.
4)There is no wicks.Wick is a sign of weakness and also tells us the power between bulls and bears.There is no top Wick so there is no resistance from bulls.

so,the last candle is the setup candle and we draw Fibonacci retracement to that setup bar.Now,we will look 4h-timeframe and look for three areas where price might show some sign of weakness.
1)50% retracement is one of the areas where we are looking for retracement.
2)less 33% and near the minor line(105.00)this is another area where price might show some weakness.
3)100% is a place where price just flow down without any retracement.

I watch following pairs:

USD/JPY
GBP/JPY
EUR/JPY

EUR/USD
EUR/AUD
EUR/NZD
EUR/CAD

AUD/NZD
GBP/USD
GBP/CHF

1)First 3-pairs are the pairs which can be traded.
This pairs are traded because price is near Major line and also priced closed below the open of previous Up-candle.
2)Pairs which are on my watch-list for this week are EUR/USD GBP?USD and EUR/CAD.
EUR/USD and EUR/CAD are the pairs which in range for more than 2-months i will be only interested if the 4H-candle close below or above the range.
According to me,GBP/USD has been over brought and so i think long is on hold for time-being.until price show some sign of weakness or price reach major line or minor line i won't trade.

Here is my analysis for USD-JPY

WEEKLY Chart:
Price has closed below major line and passed through Major line.
Price has closed below open of previous Up-Candle.

4H-chart:
Red Boxes are place where we are expecting price might retrace and move in the downward direction. At present it is showing Flying Buddha which is a sign of weakness in downward direction. We are anticipating price might retrace and come back to place where 3 red boxes are shown
1) 50% Retracement of Previous down bar.
2) Less than 33% retracement of Previous Bar
3) Near 100% of previous bar
We are also interested in the areas such as open price of previous weekly bar and also top of previous weekly bar. But, generally it retrace back to 50% (or) open of previous bar.

Those are 3-pairs for this week.I will post my trades while week goes on.
Till,then bye.

Cheers
Prakash

Here is EUR-NZD analysis

This pair is showing strong form of resistance in daily and 4H.I am anticipating a bearish weekly bar.I would like to take 2-counter trades 2morrow morning.
I am anticipating for downward move until i find any reason to take buy option.

Here is weekly and 4h time frame :

Even in daily time frame it is showing sign of weakness.So,there is confirmation from 2-time frames.So,we are going Counter trade.Now I am looking to make some pips on this pair this week.

There is interesting.
I was looking for building equity millipede and I want to start with that system and test how it´s work live.
Can you give me your opinion about a pair that you see is in good time to enter with that system?
I saw that EURGBP is on a critical poss right now on a support on monthly chart. I guess that is good to see if the support can be breaked or not to put the first trade. In the other hand, bad situation of EUR and GBP is giving me an alert to trade this pair in long term now.
What do you thing about that?

Thanks for your shared work.

Hi BioFx

Right now,I am still in testing stage...Please read and re-read all the posts of PIP-EASY and just take what you want from that thread....read it as many times as required...there are around 7 methods...feel free to take any method...
That is how you will learn....i am new to forex and trading for last 1.5 years...
Just take your time and read the post's all over again....then decide your strategy...if you would like to discuss your strategy we can discuss here....

Here are my recent positions....