WW-SR-PA Journal.

WW-SR-PA method.

Hi,
some trades I made (demo) last week, have inspired me to start keeping a journal.

My trading consists of three parts;

WW-Wolfe Wave
SR-Suport and Resistance
PA-Price action.

It esentially consits of looking for Wolfe waves on a 30min - 4 hr TF on FX (I like 1 Hr). The other markets I'm looking at are the 5 min SP and Gold.


Once I've identified a potential WW setup I look for support and resistance levels which may be a turning point. These include;

Previous swing high/low levels.
Long term trend lines;
Fib retracment levels
Fib extention levels (i.e. AB=CD)

When we have a confluence of these points - as you do in Gartley / Butterfly patterns even better.


With these two in place we move to confirming price action. They will include;

Pinbars. (james16 chart thread)
Hammers
Tweezer top/bottoms
Head and shoulders
TD sequential

Stops will be dermined by both S&R and PA.


Targets will be determined by Wolve Wave targets combined with S&R, but as I see more setups I may work to have a trailing stop setup as well.

I don't intend post entry and exit values. This is more to keep trade ideas and how they pan out. Maybe in the future I'll do that but not for the moment.

Feel free to post any potential setups you may see, as well as any constructive commentary.

What I am trying to get out of this journal;
1. I've seen a number of top traders quoted saying that losses can be painful experience but they contain the best lessons on what needs to be fixed up in your trading. A lot of traders ignore the losses and never improve. Well by putting my losses here I have to meditate on what went wrong.

2. This will give me a record so I can see what worked.

3. I'm hoping to maybe connect with some people here to exchange and compare trade setups we've spotted.

And of course - none of this is investment advise, we're just playing a game here .

Also I've note in my first setup I've been vauge about specific actions. My intention is as I learn more about what make a good setup, I will have more conviction about the specifics of trades taken.

Regards,
SilverB

(reserved for result/ links)

Here is a trade from last week. On E/J 1H
WW - numbered
SR - Have a look at the two fib extention levels.
PA - Bearish inverted hammer, touching the fibs then returning below the 1-3 line.

Regards,
SB

WW - numbered - thick gold lines
SR - two fib confluencing.
PA - H&S whose head pokes through the Res area then retreats, then fails to repenetrate on the retest.

Concerns - Bearish WW should slope up, this one slopes up ever so slightly.

Entry - The break of the H&S neckline.
Stop - Above the head.
Target - around the same price level as the 4 point or the 50 fib.

Risk/Reward around 1:1 - this quite low. This would be a good reason not to trade this. As WW can offer much higher potential R/R trades

Notable -
The red line is where the previous WW hit its target.

Interesting to see how price reaches the reacts to the 6 point of a WW on a lower TF. Of course the 6 point is also a fib and a previous low. I think spotting the dominant WW and not getting distracted by the lower TFs is the hard part.

SB

Trade killed. It had moved beyond reasonable.

PPI figures which came out in the middle of the day pointed to increase interest rate. Should have killed it then as conditions had changed.

Look at this WW which formed on the 15 min.

I learn a lot from this trade. Some thing I am considering are strategies to take half profit a 1:1 / SR near that, and moving stop to BE look to reach the WW predectied target. That would have worked well in this situation. I'd like to get mechanical about trade management as I feel I get distracted in the trade.

SB.

WW-blue line symetrical nice looking
SR - congested price around yellow line - also 50% of days range, consided an intraday pivot
PA - if you look at 5 min there is a spike and ledge. (see LBR Strreet smarts),
as well as a BO of the 2-4 line.

Concerns - what am I doing trading 15min? Is it because was a great Bullish WW M15 GBP earlier that I missed? No it because I learn through doing.

UPDATE: made a dozen pips on it - happy. got out as it was slowing donw around the 50% retracment.

UPDATE2: Ended going father than target. The reason I got out above was a kind of laziness. I need a strat for tightening my stops/lightening the load if I get worried.

A note is that the 2 WW on 15 min GBP today were very clear and spiky. I should try and look out for similar types of WW.

I'm too late for these but I'll note them any way
CHF 15M
WW - nice and spikey
SR - Yesterdays high
PR - Tweezer tops

UPDATE:Target hit - we are now at a trend line (2-4 from earlier WW) which could bounce but we are also comming down from a double top.

USDJPY 30M
WW - symmetry
SR - swing high point from last week
PR - tweezer top

SB

Lots of WW on the yen over the last 7 trading days.

4 lasting 1-2 days, and a big one (dashed lines).

There are even some tiny ones i I've left out.

Of course the trick is to spot them in real time.

Notice how the red and green WW over shoot their target, but the yellow and blue get stuck on the 2-4 line (the blue may still move to the target line but the current PA shows a stall).

The question is how we trade the targets.

I'm learning heaps by doing this journal. Which was the point! I think you can read all the books you want but getting out into the field is essential, once you know what your looking for.


Just a note that for the week previous the WW on USDJPY there were far fewer WW, and those that were there were less successsful.

A few possible WW all pointing up.

WW- a few could take the small one (bit late)and see if it follows into the larger one
SR -Note that the turning point is a bullish butterfly (I think). 127 retracement and AB(74.6)=CD confluence. (Strong pattern)
PA - Yesternay was a revesal bar

SB

30 M
WW- bearish
SR - triple confluence of fib extentions (I found another one + previous high from last week.
PA - The sum of the 4 candles above the 1-3 line = inverted hammer.

But wait for it - on the 4H we have a WW
WW-bearish
SR - triple confluence of fib extentions
PA- Double high. Current bar is a long shadow inverted hammer. Looks like its scared of the fib zone.

The 4 Hr is quite speculative. I'd like to see the 30 M WW hit its target then move stop to BE and see if we can manage our 4H trade.

Concerns - I seem to get distracted when trades last too long. I've killed good trades just because they where taking thier time. Or they experience reasonable retracment.

SB

Closed out trade for a win - unlike I promised to move to BE. Inital target met. If I was playing with 2 lots maybe I'd move the 2nd to be and play the 4H WW.

WW - clear
SR - gartley (78.6 fib retracement + AB=CD)
PA - TD Sequential is completed

UPDATE: Target hit. My TP was pesimistic but was perfect for unmonitored trade. As usally I'd be asleep when this trade was completing. But this time my wife was giving birth to a lovely baby girl.
So the TP was appropriate. See you should alwas use a TP as you never know what may happen.

WW - clear 1 + 3 spikey
SR - bearish gartley (see violet lines) the 78.6 gartley retrace is also almost exactly the same as the 38.2 retracement from the high from the middle of the month.
PA - waiting look for price to hit the 1-3 line around the gartly completion and 38.2 larger retracement. Very import not to jump unless price hits. This is a rule. If it doesn't and it still moves down let it go. See it may still work but I feel that if the 1-3 line isn't at least touched we have a lower probability trade.
UPDATE(PA): Gold 30M has reached TD Sequential Countdown 13. Indicating exuastion which has simulataneously hit the 1-3 line and 38 fib. Looking to enter on a move down. stop above AB=CD line

Target - go for a pesimistic target line, I am assuming for this trade it wont go blow the blue longer term line.



I feel good about this because I picked a similar gartley WW on CHF last night so - which may or may not be a good thing .

concerns - my longer term attitude to gold - 2 weeks is bullish, but there is a good patern setting up

SB

Gold went the other way I first place a buy stop which would never been hit, but then when I saw the market moving away, ithought I'd get a better price. With reversal trading systems one needs to wait for confirmation through price action, the time to get a better price is on the retracement.

Once TDStop was breach price hammered up as expected in this situation. Of course it requires something special for one to admit defeat and swap sides.

It did confrim my general bullishness, but you cant have it both ways. One thing I'm thinking about is the following;


I'm doing OK at identifying longer term WW, but I'm having issues trading them, maybe I need to look for WW which occur on a smaller TF which are part of wave 5 of a bigger WW.
It kind of WW version of triple screen or vegas 4H. Identify direction on Higher TF then seek entries on lower TF.
This would require a large amount of dicipline but
it worth trying. Maybe I'll try and record larger WW and see how my WW trades work out in both directions. This corrent format isn't formal enough I'll need to do a spreadsheet.


In the past few weeks something has always been in larger wave 5 (ie 4H TF)- that should be the target of my attention for entries.

SilverB

This was a trade I spotted earlier but wasn't quite sure how to trade it. There we are half way through a WW on the 4 hr (blue lines). But interesting is that we have just come below a 5 line on WW on the daily chart (yellow line).

SB

WW - 5 point exceed 1-3 line
SR - rising long term trend line
PA - Train tracks - would look like a hammer on an appropriate TF (with appropriate start time)
-TD Seq complete on 30M
RR - 3:1

Exit - got out because I saw a hammer above the 2-4 line - which is a risk area
-other possibilitties would include - moving stop to blow hammer
-closing half pos moving rest to BE - prefered (only holding one pos on this trade)

Lets see how the rest of the trade would pan out if we had stayed in.

SB

Looks like we got out at a good spot. Another WW on a shorter TF set up almost immediatly. Yesterday on the lowe TF on CHF had a few WW. The bullish one would have been hard to trade for a number of reasons.

The 2 bearish WW had AB=CD.

WW - Nice and clear - classic continuation pattern
SR - Old support = new resistance - look on the left side of the chart (this is one of my favorites types of SR) also we have a 50 fib + 38 fib + the WW is in the form AB=CD with the double top 5 point forming exactly inbetween the AB=CD and AB=127(CD) levels.
PA - double top
- TD Sequential 1 pip away from completing at the second top on M30
RR(2-4) 1:1 RR(1-4) 3:1 (Adding RR for both lines)
GD(general direction) - larger Bearish WW in progress (we have crossed the 2-4 line) and this WW failed to cross back up it.

SB

I'm going to stop this Journal for the moment. A number things in my life is making it hard to keep up. I want to say the following.

1)WW-SR-PA works. I happy moving forward with this as my trading method.

2) The hardert part of the triad is the PA. This going to take some time to learn.

3) My stop attitude is give the trade some room to move.

4) Not all WW were created equal, I'm going to work on classifying them.

5) Managing the trade is hard. I need always be ready to get out if I get a reverse signal.

6) I've found EJ and USDCHF both show good WW I will focus on those pairs for now.

SilverB