AUDUSD. This pair had failed me before but the PA looked promising so I thought I should reenter. The pair broke below the resistance @1.0637 with a big block but the next block brought it back. The 1.0700 is a place where price had flipped many times so I entered a pending order a bit higher. The logical point of next resistance is 1.0750 but I became a bit greedy and aimed for 1.0800. The price reached the original resistance and turned back again and again failed to stay low. Now it is moving towards 1.0800. After I applied my new 3 MAs I see that the SMA(10) is pointing downward. This is not so pretty sight but what the heck. I am already in this trade so no reason to change my mind now.
Last edited by kmidas; February 27th, 2012 at 02:53 PM.
CADJPY. The SMAs are properly aligned and all pointing up. The price retraced up to 80.00 level and is bouncing back. I have placed a buy stop @80.1070 that will be activated after the green bar will be formed, if it will be formed.
I also entered a market order just in case price reaches my buy stop and fails. In that case I will minimize my losses. This second buy was more an impulse buy which I regret now but I hope that my friend the trend will bail me out.
Both of the orders have a stop @79.912.
The pending order has no TP, the market order has TP @80.1000
EURNZD was in downtrend, consolidated, now it is turning bullish. The MAs are aligned properly but not far from each other. It retested the 1.6000 level and bounced back up. It also bounced away from that red trend line
Another change in the plan. It seems that 50 pips blocks are too big to trade in daily. When loses happen they are bigger than 100 pips and when I decide to get out of the trade I have to leave on the table more than 100 pips. So I decided to reduce to half.
GBPUSD in uptrend, retraced to 1.59 and now it is bouncing back. That 1.59 level has acted before twice as resistance so now it is a good candidate for support.
According to the relative strength chart GBP is stronger than USD on the daily and the 4H.
The following user says Thank You to kmidas for this post:
I don't feel right with chasing moving averages on the renko bars. There is still way too much discretion involved without the added benefit of multiple time frames analysis or the ability to zoom out to see the bigger picture. For a guy forced to miss the London session, splitting my time between trading and family, trading with very thin capital on high leverage, trading a 24h market, I need a more mechanical way to pick my trades. I think I have a couple of ideas and I will do more visual check tomorrow. I will post more details tomorrow after I will do a better eyeballing on the past.
For now I still have the AUDJPY and CADJPY trades running and in green.
I was watching and testing the charts the whole weekend. Unfortunately I didn't find a way to automate my trading. I still have to use discretion.
Maybe there is something that can bail me out in many occasions from bad trades. I noticed that in many occasions, when I enter a trade that goes bad, it goes really bad, and thank God for stop loss. What if I try to take advantage of it? What if I enter the original trade in the intended direction but put another counter order pending just on the opposite side of my stop loss and the TP the same number of pips as the original loss but this time in the original direction? Of course there will be times when the range will be so tight that I will end up with double the losses. But I expect generally more successes than failures with this strategy.
The entries will be mainly Breaches of a 5 Bars Donchian Channel, Pullbacks and bounces in trends when the moving averages are aligned and bounces from the support or resistance lines. Since the bounces will be happening mostly inside consolidation areas, they will be the only trades with TP. The trend following trades and the breakouts will have only a trailing stop of 60 pips which is twice the block size plus a security margin.
I didn't take any trades today. I didn't have the time to sit and watch any charts. Even my morning espresso I took it in the office. I only managed my two open trades.