WARNING: This thread has no intention to serve as trading advice or trading lessons.
About Myself and this journal:
Fist and foremost, I'm Brazilian, so if you find any miss-usage of the English grammar or spelling please forgive me since this obviously is not my mother language.
I started my journey into the forex world about one year ago, however before my interest for trading I was a professional poker player for about 4 years, more precisely heads-up tournament. Probably this background gave me a good foundation for risk management and trading mindset, after all its just about odds and finding edges
Like everyone else I've searched the holy grail, methods after methods, until I realized the style of trading I really enjoy is simple price action without ANY indicator, naked trading with just support and resistance and price action as trigger. I'm a firm believer of the KISS attitude (keep it simple stupid).
Anyway, this journal is one a step towards becoming professional and trying to keep a good clean record of my trades,
why I took then, and most important, to learn from my mistakes.
About the method:
This method is based on the teachings of Johnathon Fox and he's thread on babypips, I simple trade it using smaller time-frames, mostly 4hr, 1hr and 30min.
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TRADING CHECKLIST
Conditions for entry trigger
1. On 4 HOUR, draw one horizontal support line at the significant support level closest to current price.
2. On 4 HOUR, draw one horizontal resistance line at the significant resistance level closest to current price.
3. On 4-HOUR CHART, 1HOUR and 30 MIN, look for trading opportunities as price approaches these support and resistance levels.
Determine trend
UP – only take long positions on pullbacks to support.
DOWN – only take short positions on pullbacks to resistance
SIDEWAYS – take long positions at bottom of range and short positions at top of range.
Watch for candlestick reversal patterns
1. Is it large and obvious?
2. Is it at a swing high or a swing low?
3. Is it at one of the significant support or resistance areas?
4. LOOK LEFT – are you trading into traffic that will hinder a move in the correct direction?
PA TRIGGERS
Pin Bar
1. Open and close within previous bar
2. Candle wick 3 times length of candle body
3. Large nose protruding from all other bars
Engulfing Bar
1. Must consume ENTIRE previous candle (body AND wicks).
2. Price must close in the last third of the candle in the direction of the trade.
Two Bar Reversal
1. Two candles approximately the same size
2. First candle closes in the opposite direction of the trade
3. Second candle closes in the direction of the trade (preferably above or below the open of the previous bar, depending on direction of trade.)
ENTRY ORDER
1. Enter on candle break. Pending order set 5-10pips above/bellow PA candle used as trigger.
2. Only ONE open trade per pair.
STOP LOSS
SL 5-10pips bellow/above PA used as trigger. Or bellow/above obvious S/R level.
TRADE MANAGEMENT
TP on first support/resistance area.
RISK MANAGEMENT
This part I like to keep private for now since it came from my poker experience and how I used to manage my bankroll on the old days. Its a method for building a stake as fast as possible with really aggressive risk taking and at the same time lowering the risk of ruin on bad streaks.
PS: Always Trade WITH the Trend, however, you may also trade in Ranges and against the trend ONLY if the PA is BIG ENOUGH and OBVIOUS enough.
Let's get started :nerd:
About Myself and this journal:
Fist and foremost, I'm Brazilian, so if you find any miss-usage of the English grammar or spelling please forgive me since this obviously is not my mother language.
I started my journey into the forex world about one year ago, however before my interest for trading I was a professional poker player for about 4 years, more precisely heads-up tournament. Probably this background gave me a good foundation for risk management and trading mindset, after all its just about odds and finding edges
Like everyone else I've searched the holy grail, methods after methods, until I realized the style of trading I really enjoy is simple price action without ANY indicator, naked trading with just support and resistance and price action as trigger. I'm a firm believer of the KISS attitude (keep it simple stupid).
Anyway, this journal is one a step towards becoming professional and trying to keep a good clean record of my trades,
why I took then, and most important, to learn from my mistakes.
About the method:
This method is based on the teachings of Johnathon Fox and he's thread on babypips, I simple trade it using smaller time-frames, mostly 4hr, 1hr and 30min.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
TRADING CHECKLIST
Conditions for entry trigger
1. On 4 HOUR, draw one horizontal support line at the significant support level closest to current price.
2. On 4 HOUR, draw one horizontal resistance line at the significant resistance level closest to current price.
3. On 4-HOUR CHART, 1HOUR and 30 MIN, look for trading opportunities as price approaches these support and resistance levels.
Determine trend
UP – only take long positions on pullbacks to support.
DOWN – only take short positions on pullbacks to resistance
SIDEWAYS – take long positions at bottom of range and short positions at top of range.
Watch for candlestick reversal patterns
1. Is it large and obvious?
2. Is it at a swing high or a swing low?
3. Is it at one of the significant support or resistance areas?
4. LOOK LEFT – are you trading into traffic that will hinder a move in the correct direction?
PA TRIGGERS
Pin Bar
1. Open and close within previous bar
2. Candle wick 3 times length of candle body
3. Large nose protruding from all other bars
Engulfing Bar
1. Must consume ENTIRE previous candle (body AND wicks).
2. Price must close in the last third of the candle in the direction of the trade.
Two Bar Reversal
1. Two candles approximately the same size
2. First candle closes in the opposite direction of the trade
3. Second candle closes in the direction of the trade (preferably above or below the open of the previous bar, depending on direction of trade.)
ENTRY ORDER
1. Enter on candle break. Pending order set 5-10pips above/bellow PA candle used as trigger.
2. Only ONE open trade per pair.
STOP LOSS
SL 5-10pips bellow/above PA used as trigger. Or bellow/above obvious S/R level.
TRADE MANAGEMENT
TP on first support/resistance area.
RISK MANAGEMENT
This part I like to keep private for now since it came from my poker experience and how I used to manage my bankroll on the old days. Its a method for building a stake as fast as possible with really aggressive risk taking and at the same time lowering the risk of ruin on bad streaks.
PS: Always Trade WITH the Trend, however, you may also trade in Ranges and against the trend ONLY if the PA is BIG ENOUGH and OBVIOUS enough.
Let's get started :nerd:
