Thursday, July 16, 2009
July 15, 2009 200+ Forex Pips
This is my third forex trading results report. Both euro and pound were a narrow range day yesterday, a NR7 for euro, and a NR20 for pound. The forex trading strategies - narrow range breakout worked out perfectly for both euro and pound.
Tuesday, July 14, 2009
July 13, 2009 200+ Forex Pips
This is my second forex trading results report. Today the upside momentum is pretty strong and decisive for both euro and pound. The long side directional bias were reinforced when pound held its ground at yesterday's low (1.6165), and euro took a breakout to the upside of its daily pivot point (1.3959). Those price action were perfect for forex swing trading.
All pound positions were closed at 1.62139. And euro positions were stopped out at 1.3964. The stop loss might be moved too close. Anyway, can't complain much for a 200+ forex pips day.
All pound positions were closed at 1.62139. And euro positions were stopped out at 1.3964. The stop loss might be moved too close. Anyway, can't complain much for a 200+ forex pips day.
Friday, July 10, 2009
How I Made 500+ Pips via Forex Day Trading in One Day
Well, this is the first time I decided to post some of my real trading results. The reason I did this is to share the lessons I learned, and encourage those just get started - it is possible to make hundreds of pips in one day. Forex day trading is not rocket science. It takes dedication and hard work to master the art of speculation.
I will not go through the detail of how I made my trading decision. All the analysis and knowledge are scattered around on this blog - Forex Day Trading.
Forex Strategies for July 9, 2009
For Japanese yen: after the down trending day (July 8), the rally formed a double top pattern just below the pivot point (93.19), and dollar is weak. So I decided short usd/jpy.
For British pound: July 8 was a narrow range day (NR20). Pound made a breakout of yesterday's high at the beginning of London session, which gave me a hint July 9 would be an up-trending day. So I mentally prepared myself to follow the lead of any long signal market gave me as long as pound remained above the major resistance 1.6210. There was a double top breakout at 1.6266 on hourly point and figure charts.
For Euro: July 8 was a narrow range day as well (NR20). I had one long position which entered yesterday stopped out at the initial dip, which was still above yesterday's high, maybe I moved my stop loss too close. After the dip, there was a long signal generated when euro broke out the confluence zone on hourly chart - 200EMA, 10-day EMA, top of downward channel all lined up.
The Final Results for July 9, 2009
Yen hit my stop loss, I ended with a less than 10 pips loss. I closed GBP/USD when it approached its daily range + 3s.d. (1.6385), since there is only 20% chance of pound will reach 4s.d. according to my study. Naturally I closed EUR/USD at the same time as well. Five long transactions of EUR/USD were excluded, since the above screen shot only showed current opening positions. The final results are 780.9 pips for 14 trades - 7 short usd/jpy, 1 long eur/usd, and 6 long gpb/usd.
What Happened After I Close My Positions?
Yen is still in bearish mode. There is no downside follow through momentum though. I will keep my hands off yen.
It is proved that my exits of pound and euro were exact at the top of the up swing. I didn't enter any long or short position thereafter.
How Do I Generate My Trading Decision?
Before I pull the trigger, I would like to go through the following seven steps to make sure the odds are in my favor. The market would teach me a hard lesson whenever I forgot to do the analysis or missed some steps.
1. Market analysis: What the market is telling me now?
2. Trend analysis: What is current trend?
3. Momentum analysis: What is current momentum?
4. Pattern analysis: Any high probability low risk setup?
5. Timing analysis: Is my timing perfect?
6. Risk analysis: Does my initial protective stop loss make perfect technical sense?
7. Psychology analysis: Am I ready to take the trade?
I will build trades only in the direction of the trend, and scale in when the current momentum lines up with the direction of the trend. If the first trade didn't show my any profit, I won't add a second load. If the first stop loss was hit, I will go through the above process again to make sure I am still in sync with the market.
Best Trading Books That are Particular Helpful
There are some great trading books help me a lot on my journey of forex day trading. Most of them are listed at the left sidebar. I will make the list shorter here, hope it will be helpful to you too.
Japanese Candlestick Charting Techniques, Second Edition
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)
Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices (Wiley Trading)
The Taylor Trading Technique
High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets (Wiley Trading)
Trading for a Living: Psychology, Trading Tactics, Money Management
Street Smarts: High Probability Short-Term Trading Strategies
Final Words
1. Currency forex market trading is quite promising as long as you know what you are doing. You need to work out a forex system which suits your personality or trading style. Not every forex trade signal will turn out to be a winner.
2. Point and figure charts are particular helpful forex technical analysis tool.
3. Not every narrow range day will breakout, and not every breakout will follow through.
4. High probability low risk setups won't occur everyday. Be realistic with your daily trading performance.
5. I sincerely agree with Richard Dennis - the father of Turtle Traders, that trading can be taught and learned through strong dedication and hard work.
I will not go through the detail of how I made my trading decision. All the analysis and knowledge are scattered around on this blog - Forex Day Trading.
Forex Strategies for July 9, 2009
For Japanese yen: after the down trending day (July 8), the rally formed a double top pattern just below the pivot point (93.19), and dollar is weak. So I decided short usd/jpy.
For British pound: July 8 was a narrow range day (NR20). Pound made a breakout of yesterday's high at the beginning of London session, which gave me a hint July 9 would be an up-trending day. So I mentally prepared myself to follow the lead of any long signal market gave me as long as pound remained above the major resistance 1.6210. There was a double top breakout at 1.6266 on hourly point and figure charts.
For Euro: July 8 was a narrow range day as well (NR20). I had one long position which entered yesterday stopped out at the initial dip, which was still above yesterday's high, maybe I moved my stop loss too close. After the dip, there was a long signal generated when euro broke out the confluence zone on hourly chart - 200EMA, 10-day EMA, top of downward channel all lined up.
The Final Results for July 9, 2009
Yen hit my stop loss, I ended with a less than 10 pips loss. I closed GBP/USD when it approached its daily range + 3s.d. (1.6385), since there is only 20% chance of pound will reach 4s.d. according to my study. Naturally I closed EUR/USD at the same time as well. Five long transactions of EUR/USD were excluded, since the above screen shot only showed current opening positions. The final results are 780.9 pips for 14 trades - 7 short usd/jpy, 1 long eur/usd, and 6 long gpb/usd.
What Happened After I Close My Positions?
Yen is still in bearish mode. There is no downside follow through momentum though. I will keep my hands off yen.
It is proved that my exits of pound and euro were exact at the top of the up swing. I didn't enter any long or short position thereafter.
How Do I Generate My Trading Decision?
Before I pull the trigger, I would like to go through the following seven steps to make sure the odds are in my favor. The market would teach me a hard lesson whenever I forgot to do the analysis or missed some steps.
1. Market analysis: What the market is telling me now?
2. Trend analysis: What is current trend?
3. Momentum analysis: What is current momentum?
4. Pattern analysis: Any high probability low risk setup?
5. Timing analysis: Is my timing perfect?
6. Risk analysis: Does my initial protective stop loss make perfect technical sense?
7. Psychology analysis: Am I ready to take the trade?
I will build trades only in the direction of the trend, and scale in when the current momentum lines up with the direction of the trend. If the first trade didn't show my any profit, I won't add a second load. If the first stop loss was hit, I will go through the above process again to make sure I am still in sync with the market.
Best Trading Books That are Particular Helpful
There are some great trading books help me a lot on my journey of forex day trading. Most of them are listed at the left sidebar. I will make the list shorter here, hope it will be helpful to you too.
Japanese Candlestick Charting Techniques, Second Edition
Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance)
Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices (Wiley Trading)
The Taylor Trading Technique
High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets (Wiley Trading)
Trading for a Living: Psychology, Trading Tactics, Money Management
Street Smarts: High Probability Short-Term Trading Strategies
Final Words
1. Currency forex market trading is quite promising as long as you know what you are doing. You need to work out a forex system which suits your personality or trading style. Not every forex trade signal will turn out to be a winner.
2. Point and figure charts are particular helpful forex technical analysis tool.
3. Not every narrow range day will breakout, and not every breakout will follow through.
4. High probability low risk setups won't occur everyday. Be realistic with your daily trading performance.
5. I sincerely agree with Richard Dennis - the father of Turtle Traders, that trading can be taught and learned through strong dedication and hard work.
Thursday, July 9, 2009
July 8, Forex Market Recap
For Japanese yen, Tuesday (7/7/2009) was an inside day (ID) with a daily range of 75-pip. Since last Friday (7/3/2009) was a holiday, which qualify Tuesday as a narrow range day (NR7).
Yen broke Tuesday's lower boundary in Asian session, which put yen in a very bearish mood, since it's a NR7/ID breakdown. Yen formed a small range and remained below yesterday's low for the whole London session and early US session. The downside follow through happened around 11:00am, which was decisive and dropped 233-pip in two hours, that is 7.3 s.d. out of average daily range. The bears are laughing all the way to the bank. There is an instant 150-pip rally after yen hit the bottom of a downward channel on daily charts.
On daily point and figure charts, there is a double bottom breakdown at 94.00. Look at hourly PnF, there is a double bottom breakdown on July 5 at 95.50, the downward momentum continued and broke support at 95.00 and 94.00 on July 6, and July 8 individually.
So the forex strategies for narrow range and inside day is to follow which direction the market is leading and prepare for a trending day. There is no need to predict direction or put personal bias on the market.
Yen broke Tuesday's lower boundary in Asian session, which put yen in a very bearish mood, since it's a NR7/ID breakdown. Yen formed a small range and remained below yesterday's low for the whole London session and early US session. The downside follow through happened around 11:00am, which was decisive and dropped 233-pip in two hours, that is 7.3 s.d. out of average daily range. The bears are laughing all the way to the bank. There is an instant 150-pip rally after yen hit the bottom of a downward channel on daily charts.
On daily point and figure charts, there is a double bottom breakdown at 94.00. Look at hourly PnF, there is a double bottom breakdown on July 5 at 95.50, the downward momentum continued and broke support at 95.00 and 94.00 on July 6, and July 8 individually.
So the forex strategies for narrow range and inside day is to follow which direction the market is leading and prepare for a trending day. There is no need to predict direction or put personal bias on the market.
Wednesday, July 1, 2009
July 1, 2009 Forex Market Recap
After the 8:15am event, British pound rallied until met resistance at pivot point (1.6543), and formed a symmetrical triangle pattern. For such pattern there is no need to predict the breakout direction, since both directions are possible. It turned out it's a breakdown.
Last night, euro formed a double bottom at yesterday's low 1.4001. The reversal signal was given at the beginning of London session after a breakout from the bottom range. After the breakout, the temporary dip found support at the top of the bottom range. A high probability long position entry was given when euro took a breakout from the symmetrical triangle. The rally reached euro's average daily range at 1.4164, which is right above yesterday's high 1.4152. There is a 70-pip spike in just 3 minutes (11:58-12:00pm).
Forex alerts for July 2, 2009
Yen was a NR7 today. Be prepared for a trending day.
Last night, euro formed a double bottom at yesterday's low 1.4001. The reversal signal was given at the beginning of London session after a breakout from the bottom range. After the breakout, the temporary dip found support at the top of the bottom range. A high probability long position entry was given when euro took a breakout from the symmetrical triangle. The rally reached euro's average daily range at 1.4164, which is right above yesterday's high 1.4152. There is a 70-pip spike in just 3 minutes (11:58-12:00pm).
Forex alerts for July 2, 2009
Yen was a NR7 today. Be prepared for a trending day.
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