This journal is for my own accountability. I use MT4 and trade the Forex market. I use Daryl Guppy's moving averages to decide whether a setup exists along with several other factors that I will list shortly. I use Dean Malone's DOTS to determine where to enter the trade.
1. Time of day. The daily NY open is 8:00 EST. I enter trades from then until 11:15 AM.
2. Red News. I do not enter trades 30M before of after.
3. Higher time frame. I trade the 15 but the Guppy's must be in agreement on the 30.
4. I look for angle and separation of the MA's. Looking at the face of a clock, a long must be between 12-2 and a short between 4-6. The steeper the better.
5. I look left for support/resistance. This includes the previous hi/lo.
6. I look at the ADR high and low for possible reversal points. However if one of the currencies is either the strongest or weakest, the ADR can be ignored. I use a Currency Strength Meter to help here.
Here's a snapshot from earlier in the week.
Last edited by ordiehl; September 19th, 2013 at 10:35 AM.
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First to answer a couple of questions. The Red horizontal line is my sell entry and the green horizontal is my buy entry.
I was also asked if I tested the DOTS as a stand alone system. I did. It was totally worthless (IMHO) without some kind of filter. I don't believe there is anything magical about these numbers. I've used other levels in the past and they seem to work as well as the DOTS. One level that I've used is a horizontal line every 25 pips starting with zero. This seems to work as well as the DOTS.
As for today, it was a disaster. Three trades, all losers.
This is not usual to have all winners or all losers in a day. The trades are generally correlated. Today they were all U S Dollar pairs.
You will not be able to correlate my plus or minus pips with the charts. When I have a winning trade, I scale out as the trade goes in my direction. It also occurred to me months ago that if you scale out of winning trades it would be absolutely ludicrous not to scale out of losing trades so I do.
Here's a chart showing what I was looking at when I entered one of today's trades. I entered the first time it hit the red line and came within a micro pip of being stopped out before it went in my direction.
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