Why fried jam? Why not.
- This journal aims to keep my trades and views in one place so that I can revisit and review my thinking. The points below are more for me to keep my 'imagination' in check and follow a set of rules rather than prototyping on the fly.
- I don't aim to teach anyone anything and certainly would discourage anyone copying my trades.
- because I had a few years' break from live trading, my trades are based on a demo account at this stage.
- I only trade forex - traded other financial instruments in the past, but a number of years ago decided to focus on forex only.
- At this stage I only follow the major pairs.
- As it stands, the time frames I use for my analysis are 3h upwards. I might dip to 1h from time to time, but that's rare and it serves another purpose. Sometimes I use it here when posting charts to show more detail.
- I use a combination of trend following, and what's commonly known as supply&demand levels, to get a bearing on where the price might be headed next.
- The trend following part is built on the basis of establishing:
- Trend or cycle - typically based on 3D or 1D time frame
- Momentum - typically based on 6h and 3h time frames. I don't use indicators such as RSIs or MACDs to determine the momentum.
- I aim to place trades based on the momentum aligning with the trend. This means that I'd rather avoid taking momentum trades against the trend, but this isn't a hard and fast rule.
- Levels:
- I set levels based on what I've learnt from a number of sources regarding price action.
- I try to automate the process of level setting, but the price action and structure will take precedence when setting up trade entry/exit levels.
- I use levels to inform me about potential liquidity pools that might lead to changes in the PA.
- I don't use the levels (or anything else for that matter) to be-all and end-all. These are simply road signs as far as I'm concerned.
- I'm totally aware that the candle makers (institutional traders) hold the keys to what's going on in the markets and all I intend to do is to read (follow) what they've 'written'.
- My aim (over a series of trades - long term) would be to get 50% of winning trades with 1:2 RR ratio.
Do good. Critique and feedback is welcome, but if you want to criticise, find another outlet for your views. Yes, there's a fine line between both. Learn it.