The world of Trading Peacefully

Taking in a stab on pullback of eur.usd. i have a stop at bottom of pullback. i expect it to hit the top of the resistance there.

It is still near the bottom of the pullback. waiting for it to bounce out soon.

It moved up HH7 to 1 ATR and i closed it off quickly to keep the gains.

Getting into reversal trade as it failed at top. also put a limit order near top of that range.

Saw NR7, and heard that the Euro market is opening 30 minutes from now. Got fearful of the trade and got otu for 1 pip gain.

Saw NR7 on top and took a reveral trade. stop for high on the range.

it moved down nicely and i closed off as it had a 4 pip gain.

Took a breakout trade as it moved above the range. The target is HOD with stop below prev bar low.

it pulled stop for 8 pip loss.

The gap that i found today was that when there is a HH7 bar, keep the stops tight as volatility should be moving it to 1 side otherwise it will whip lash.

Last week was when i realized the power of conscious trading. i had 2 great trading days. When i review the charts. i figured out this when the strategy that i had followed on the night of 5th March got busted. i had expected the AUD to bounce sharply after the AUD fed news. it went against me initially and sharply moved above my buy point. my mind got racing so much that i missed the sell and take profits. however it moved down sharply and next mornign i was down by 100 pips.

I did a similar error next mornign with EUR.USD. Then i realized that trading is a probably game

i am right or i am wrong. When i am right, i have to take profits. When i am wrong, i have to take the losses. I dont have to wait till the pain kicks in for me to sell.

Every strategy needs a point where my decision turned out to be right or i decide that i am wrong. the decision that i am wrong needs to be taken quickly and effectively without damaging my account.

The eur.usd broke down channel. however there was not enough power. not its pulling back at the high end. i could look for a zlr pattern to form here and attempt another breakdown.

I can see it fail at 1.3233 and set a sell limit to capture quick gains. if it fails there, then i would average it once. then if i am wrong, i am wrong and get out.

It did move down and went back above. i setup a limit 1.3244 for another average as there is lots of resistance there.

As it moved down this time, i had a tight stop and gained 2 pips gain.

Next trade, i will attempt as it breaks below 1.3222 as i believe that it has rejected the top.

Excellant trade, it moved down nicely and i captured 4 pips profits.

it looks like another channel is forming. if it breaks down 1.3212 then its going to fly. lets us see. i will set sell stop 1.3212.

i also think that it might be rejecting the bottom temporarily. so i did buy stop if it moves above.

it got filled. my stop is at new low of day.

it is still moving between where i bought and the LOD. so its a new channel. i basically did a sell stop and at LOD so that if it moves down, i will make the gains.

saw the channel forming and got another position at bottom of channel and set sell limit 1.3220. the liquidity is decreasing and so i decided to set a limit at top of channel.

closed it near top of channel and got my gains for today.

Today the EUR.USD was trending high. the story of today’s mornign session is as follows

it was moving in a channel between 3-4 and  finally broke out  of the channel @ 4 am. as i was not trading at that time, i could not take advantage of it.

the move started out as a failure to penetrate bottom of the channel. it went flying and if i had a proper stop behind the low of the previous bar, i would have gained nearly 45 pips in 30 minutes.

i often call it easy money.

I did trade later in the day and make 10 pips in 3 trades. lets review and see how i could have even made it easier.

i started looking at market around 10.30 am and found it in a channel. i set a breakout at the channel. it was bound to go because the previous bars, it failed to fall through the channel. however i was not patient enough that i closed it early. there is flow in the market but i cut myself too soon.

Having only captured 3 pips in that move, i decided to wait till it failed at the top as i had already exited the move.

i entered correctly but had no patience to wait through the market. so i got out for quick gains.

each one of these trades could have given me my 10 pips easily if i had been patient.

the moral of the story is that if its making higher high or lower low after failing a channel, it pays to be patient by keeping a stop behind the previous low or previous high based on the direction.

This is a journal of today’s market between 3-6 am.As i did not trade this morning and i was sleeping. i decided to journal today’s  story after the fact. What would i have done if i had traded today.

i would have looked into the market and seen it rejecting the channel from 1.3133 and moving towards the high of the channel to 1.3153. it rejected it at the top but there were no signals that matched my pattern of rejecting the top. . My first trade would have been at 3.35 as it broke down and i would have entered 1.3131 and closed at 1.3127

The second trade would have been at 1.3132 long @ 4 am as it showed rejecting teh downward signal and closed at 1.3141 making my cool 10 pips gains and i would have ended today’s action.

However tomorrow i intend to trade and make my money.

Following the market conditions and being in the direction of the price movements is a critical element of trading. This allows money to flow into my bank account. let us examine the key components of market flow.

1. bars keep moving in 1 direction for 2-3 bars and this will allow me to take some gains.

2. The volume is increasing in the market and this will allow for the price movements to take traction.

3. The signals preceding the market flow must be predictable. Realistically speaking, we can only see the left hand side of any chart. The patterns evolve after a fact and we must be able to identify the pattern as it evolves. This involves tremendous patience, calmness and being connected to the tape.

Based on this, i have determined that trading the EUR.USD between 3 am to  6 am provides the best opportunities for the following reasons.

1. The Asian markets are closing

2. European markets are opening and running

3. Euro news precede the US market and pre market activities take place.

4. The Liquidity and the traders increase at this time allowing for dynamic market action.

Every day, there is a story that takes place in the market. this story describes the flow of the market. Daily. i will document the story as it evolves and take the opportunities as it takes place. The key ingredients of the story are

1. Channel creation.

2. Breakouts of channels.

3. Pullbacks after the breakouts.

4. price volatility

My objective is to make 10 pips of profits daily and be in the market where the price bars move consistently in 1 direction. I need to be in the market as it moves in that 1 direction and make consistent profits daily.

I am testing out how the forex trade posting happens. it seems to be highly unlikely that it will happen but i am very exited.

So what i have decided is that when they happen. i a

m going to post them as  quickly as possible.

What do you think about hsi chart