Having looked for a second approach to trading. I'm considering using a Wave strategy. Although this isn't complete (I'm awaiting confirmation by MACD crossover) I feel this will make a good secondary strategy when my primary strategy is not applicable.
I will use Fibonacci to set targets, and my stop loss will be half of the body size of the previous candle;...
I'm very new to Elliot wave, and Elliot wave analysis. However using this method I'm expecting (after confirmation) a price uptrend.
I've already indicated my my stop loss and and target prices in blue. I've included a MACD indicator which shows that a prices are continuing to decline. I will wait for a cross over before placing any trade.
The purpose of...
This is an adapted version of previous strategies; which I have found to be more effective, particularly with the current situation.
I'm using a wave strategy to find suitable entries. The wave strategy is where I look for change between a downtrend and uptrend. This is indicated in yellow on the chart; using the Fibonacchi tool, I set myself profit and stop...
I used the chart to help build up a portfolio of trades, which I recoded in my trade log, to help analyse whether by current strategy works. I'm going to continue with this work with more currency pairs until I build enough data to properly analyse my strategy and see what needs tweaking.
January seems to be a poor month for most foxex pairs. However I did manage to find 3 suitable entries. Only one trade was successful.
trade 1 (successful)
target = 0.5260
stop loss =0.5224
stop loss =0.5283
target = 0.5325
entry = 0.5291
stop loss = 0.5286
target = 0.5320
entry = 0.597
Target is 2 x the size of the candle (this strategy already appears to be more successful) = 973.8
entry is 1/3 of the size of the candle =958.2
stop order = 956.8
Target = 999.4
stop order = 975.2
Target = 988.2
entry = 979.2
stop order =973.5
Although the targets are smaller, they are easier to accumulate over the time...
Entry = 1002.2
Stop Order =994.1
Target (4%) = 1040.4
The reason why I placed such a high target was that the trend was so bullish, 3% was already achieved by the succeeding candlestick, I therefore increased my target by an extra 1%.
I also indicated other suitable entries. Platinum is certainly an area I will take a great deal of interest in.
I've identified 3 possible trades. The most recent trade began on Jan 13th, I will use this trade to test my mindset to see whether my entry was correct. Whereas my previous charts were used to identify entries.
I will record this trade in my trade log and successful or not will be highlighted in my log and help build an analysis of my current strategy.
I have adapted my strategy slightly here.
This time my stop order is only 5 pips below my opening candlestick. My target is still rather conservative at 1%, but this will allow me to accumulate trades later and increase the overall profit from this original trade.
Stop order = 1539.3
To practice find multiple entries, I selected Dec 2019 to find multiple possible trades using my current strategies. By looking at the charts only 4 out of 6 trades would have been successful. This would not have been good enough; a change to my strategy is needed to get my success rate increased. Trades 2-5 could have been cumulative thereby making 4% from a...
Entry = 1.2934
Stop Order 1.2924
Target (1%)= 1.3102
**from now on I may change my target in accordance with how steep the trend line is. As the trend line moderately steep I may in future be more aggressive with my targets. A more flat trend line may mean I use a more conservative target (say between 0.5 and 1%). This is an area I will have to think about.
To find the stop order I measured the size of the engulfing candlestick (1325 pips) and divided by 3 as this the rule I use to identify what counts as a engulfing candlestick. The candlestick has to be at least 3 times as big as the previous candlestick. Therefore 1325 /3 = 441.6 pips below the candlestick. The stop order will therefore be 7241.9
The Entry will...