Posted on June 24th, 2008 by Mayson
Interesting moment I’m observing now about my current trading transformation in Forex.
Since I’ve decided to trade daily charts I spend far less time now thinking about Forex every day. Finally this week under the influence of different daily events happening plus luxury summer time days, this week I caught myself missing out on checking my Forex charts for two days in a row… And before that also two days were forgotten + 2 weekends…
I must say, I’m quite disoriented in what is happening on the market now. But I’ll catch up.
And to help me in this I’ll call for my new friend - KAGI CHARTS, I’ve learned about some time ago.
Simply taking trades in the direction suggested by Kagi charts has decreased my losses in Forex dramatically.
To illustrate it, look at this regular daily screen shot of EUR/USD. It is difficult to say which way to trade now: up or down.
While with kagi charts (same time period same currency) we have a clear direction, it points down:
Kagi charts consist of two lines: thinner and thicker one.
Thinner one means market is in a downtrend. Thicker - in an uptrend.
So now, before I go to check my other trading setups and rules, I get direction bias from Kagi charts.
Kagi charts may not be as useful for shorter time frames in Forex, while for daily charts trading they offer a good edge and additional confirmation/signals towards market trading directions.
good luck!
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Filed under: First steps in Forex
Posted on May 19th, 2008 by Mayson
Alright!
I’d like congratulate myself on making not one but two (the other one came yesterday unexpectedly) unique daily Forex system, which I will now start testing on my demo account.
I’ve been thinking a lot about what exactly do I need to trade daily charts effectively? I tried to get away from indicators magic and focus on the core of any Forex trading.
As a result I’ve come up with next approach: I use price accumulation/distribution method, where my primary goal is to identify accumulation part to be able to trade the following after it distribution. And the second aspect of my strategy based on analysing price waves, in particular looking at HH (higher high), HL (higher low), LH (lower high), LL (lower low) sequence plus as I go I mark support/resistance levels. And the last component is MACD, which I use for studying price divergence.
That’s my current trading system I’m going to test for the next 6-8 months.
The second one is a regular for me type of system - it relies solely on Forex indicators. Those types of systems do not demand much thinking that’s why I have discovered it so easy yesterday by spotting an interesting pattern on the chart. Here I use Bollinger bands and heikin-ashi candlesticks
This is everything I can share now. Just wanted to write some updates to my blog about my Forex trading adventure.
Good luck in your Forex research and trading!
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Filed under: First steps in Forex
Posted on April 28th, 2008 by Mayson
A week ago I’ve come up with a trading approach I want to test. It’s based purely on candlesticks and support/resistance levels.
After the market has taught me a tough lesson recently, I’m now back to demo trading. Why deceive myself, if it is obvious that I’m not ready to trade and keep my wins consistent yet.
I’ve decided to look closer at daily time frame. There are advantages and disadvantages of that:
- daily charts have less price noise; besides many professional traders seems to be trading of daily charts, at least that’s what they recommend. That’s an advantage.
- daily charts require less time to be spend in the Forex world. I find it also an advantage, not only because I will have more time to do other things in my life, I will also have more time to actually study Forex and what’s also important for me, I won’t feel bad about dedicating a lot of time to Forex and seeing no results. So far I’ve been spending my entire free time trading Forex, but I couldn’t make it work my way and I’m back to demo trading. This bugs me, feels as if I’m waisting my time :/
- An obvious disadvantage of demo trading with daily charts is that it will take me months and months to test my system properly. And if case I decide to change my trading rules, I’ll need even more time for re-testing. But I’m determined to do that no matter what.
That’s the course I’ve taken in my Forex trading adventure. Aimed to succeed!
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Filed under: First steps in Forex
