2020年1月7日 星期二

Forex Trading Reflection: 2019 December


Forex Trading Reflection: 2019 December
Queenie Wu

Trading routine:
Step 1: Read commentary on tradingview.com; investing.com; fx168.com
Step 2: Set trading zone by considering the support and resistance level in DAILY chart
Step 3: Check daily diagram for the key levels
Step 4: Use support and resistance indicator and the TMA channel indicator
Step 5: Follow the trend direction in the higher timeframe and use the lower timeframe to enter.  Confirm with Ideal Trend indicator on different timeframe
Step 6: Consider the current location and the strength of the candlesticks
Step 7: In H4 or H1 diagram, enter market only if all the indicators are showing the same direction (after checking the candle strength)

Indicators used:
THREE time zones, Zigzag, Ideal Trend, TMA channel, RSI 3TF, FTrend, Pivots

Currency monitoring:
Mainly EURUSD, GBPUSD, USD Index, EURUSD future, GBPUSD future

Strategies:
1.      Small reversal strategy: e.g. At the ceiling of the TMA channel channel -> Sell
2.      N buy and N sell: set Buy stop or Sell stop at the breakout level
3.      Trendy strategy:  Place order based on current strong trend, using FTrend indicator.  I am thinking how can I use the trendy strategy to conduct carry trade to earn.  Still under investigation.  
4.      US session 15:00 strategy
5.      Pair trading strategy: Trade EURUSD and GBPUSD at the same time.  Still under investigation
6.      Grid strategy: Tried DPG EA in demo account for several months.  Grid EA can generate high profit in short period of time, but as we all know that “high risk high return”.  If there is a long trendy market situation happen, the grid may fail finally.  Must consider the RISK involved!!

Reflection:
This is a very good exercise to write down my trading strategies used every week.  Generally speaking, the small reversal strategy’s winning rate is very high.  Only one or two trade in a week.  Enter the market close to the ceiling of the TMA channel after the confirmation of the reversal happened is a very good strategy.  The necessary condition for success is PATIENCE!! In real trading, it is really difficult to keep the trade open and wait for the TP level.  I am so IMPATIENT to wait.
Another concern is the timing problem.  As it is impossible for us to monitor the indicators all the time, we usually missed the best timing to enter / exit the market.  Maybe using EA trading could be a possible solution.


Targets:
1.      Improve the skill of small reversal strategy.  Train up the patience of waiting
2.      Test the use of iCustom EA.  This can help trading with customize indicators
3.      Spend some time to test the 15:00 strategy.  This is a good strategy worth to test
4.      Time is insufficient.  The only method to automate the FOREX trading is by using EA!




2019年12月29日 星期日

EURUSD D1 & H1 trend: DOWN


EURUSD D1 & H1 trend: DOWN       Date: 24 Dec 2019 
Queenie Wu

Trading zone: Consider Support and resistance: 1.11112 – 1.10691  See diagram for the KEY levels shown by the pivot indicators

Strategy: Wave trading between the key support and resistance levels.  Follow the trend direction in the higher timeframe and use the lower timeframe to enter.

D1 Chart: Decreasing trend started.  Reversal point at 1.11390.  Currently, at 1.10754, in the middle of TMA channel.

H1 Chart:
We are following the decreasing trend. When European session started, one very strong bearish candle just formed, moving forward to the floor of TMA channel.


Trend direction: use Identify trend indicator: DOWN in both D1, H4 and H1 charts


Expected direction: DOWN in short term; following the bearish trend formed.

Entry point: now SELL at 1.10754;

Exit point: D1: We can use the Support level to exit at TP1: 1.10691

SL: At 1.11112 (the top of the previous candle; close to the resistance level 3)

Result: After reaching 1.10703, it reversed.  Take profit before TP1


D1 EURUSD.  A decreasing trend started. Expected direction: DOWN.  Reversal point at 1.11390 


H4 EURUSD.  Trend direction: DOWN