Friday, January 30, 2009

Trading Setup

- Wait for 5min signal candles to confirm
- Trade in the direction of previous day's candle
- Use stochs with discretion, below 80 and above 20.

Trading Log - 30Jan2009

Todays trade. Short after a bounce of yesterday's low support turned resistance.

A nice song. Helped me make 40 pips today! LOL!

What is the Wolfe Wave?

Simply put, the Wolfe Wave is a natural rhythm that exists in all markets. It is made up of waves of supply and demand that form their own equilibrium. It was not "invented" by me, but discovered. The key to its accuracy is in properly identifying the 1, 2, 3, 4 & 5 points. These are what give it its proper balance of equilibrium. It is very important to identify the dominant Wave. It is somewhat like recognizing those 3-D pictures. After a while a smile comes to your face and you say: "WOW, I see it."

Thursday, January 29, 2009

Trading Log

Double Top / Head and Shoulders and Bounce of DO with Force Signals.

Trading Log

Test and break. Advanced entry.

Sunday, January 25, 2009

Trading Log - 26Jan2009

A nice short after Head and Shoulders pattern.
1st Trading Rules

  • Max 5 trades a day.
  • Close 50% at +20 pips. Rest stop at Break Even and ride until reversal pattern forms.

Every start of a trading day would not be complete without a nice cup of hot double shot latte!

Trading Log - Review

The cup is a saucer-shape consolidation (consolidating rounded double bottom at MS1), and the handle is a short pullback followed by a breakout.

A classic cup and handle pattern as it forms at the pivot point support target MS1.This is the essence of an accumulation period. It tires and bores traders; and as the handle forms, it scare traders into exiting longs or, even worse, going short at support. It is this period of consolidation that creates indecision. Once prices take off, it causes shorts to run like mad for cover.

The height of the cup which is actually around 110 pips is used to determine or predict the minimum upside price objective. The predicted 110 pips upside price objective is also very very near Daily Pivot 1.2998 the next resistance!!

There is a breakout of 1.2885 resistance (cup).

Wait for a Two Period close above resistance to confirm breakout.
Candle 1720 and 1725 has broken resistance but no Force signals so its better to stay out.
Whereas candle 1745 and 1750 is also a Two Period Close above resistance. As you can see the Force signals also confirms the move. Buy at 1755 candle open. Apply rule with Force = high probability!

Saturday, January 24, 2009

Has USD reach overbought mode?

We will see.

In the meantime, i will be watching Million Dollar Traders Series at youtube.
Here is the link~

Friday, January 23, 2009

Trading Log - 23Jan2009

Short GU with a Bounce of DS1.

A Buy signal also prior to this with a Double Bottom as support!

Trading Log - 23Jan2009

A perfect signal to Buy with Double Bottom at support MS1.
Pound will reach Parity with USD?

Pound slumps ever closer to parity with the dollar

• Sterling falls to $1.35, its lowest level for 25 years
• Government debt rises to 47.5% of national income

That will be the question...

My Rainbow Chart - Upload for Fun!!

Trading Log -23Jan2009

Warning candles closed lower. 1st one closed lower than the previous bullish candle. 2nd candle close lower than the 1st warning candle. Impending bearish momentum.
And true enough it dropped another 50 pips.

Trading Log -23Jan2009

Price has been hovering at the support. Created a double bottom, went up but couldn't break 1.2975. Nearing London Open, price broke DS1 support and went down 100 pips.
Thats my trade for the day.

Wednesday, January 21, 2009

Trading Log

3rd Trade

High Close Doji (HCD) pattern at WS2 (pivot) provided a good signal to buy. A perfect bounce of pivot point.

Trading Log

2nd Trade:

Short EUR/USD after Double Top formation at Daily Pivot. DP proving resistance.

Trading Log

1st Trade of the day:

A bounce of Upper TL dating back 19th December. Took profit +20pips before Daily Pivot.
Defensive Play for 1st trade of the day.