Trading Methods | Foreign Exchange Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

I've always wanted to keep a trading journal and this is my attempt. I want to keep track of all my trades (as real-time as possible) so I can go back and review what I did right and what I didn't do well. First, here's an overview of my "method". I am a swing trader and my trades can last from a few hours to a few weeks. I just shorted EURUSD which I have been doing for the past three weeks.

Three step method:

Step 1: Start looking at the weekly magazine for opportunities at 10,000 feet. Like an American eagle, spot your prey from a distance before taking action. I have three choices of prey:

1. supply area
2. demand area
3. Horizontal s/r Horizontal and/or trend lines

See my recent picture of the GBPCHF shorts for a weekly analysis of the supply situation.

Step 2: On the daily time frame, if I am selling, I want to look for signs of weakness. Signs include lower highs and lower lows. I look for divergence between price and the stochastic oscillator. I look for high volume in key areas on the chart. Check out the second picture daily.

Step 3: If I am not traveling and working from home, I will zoom in further on the 4 hour chart and enter on a break of the previous H4 support level. Most of the time (like 90% of the time) I enter when I notice weakness on the daily time frame.

Money Management: I risk 2-5% per trade. I like to scale up and work on deals that I'm really sure of. Therefore, I will take up to three trades to establish the position, each trade being one-third of my normal size. For risk management, set your stop loss above or below recent moves on the daily time frame. Since I am a medium to long term trader, my stops tend to be at least 100 pips, but can be as high as three times the ATR on the daily timeframe. Therefore, on GBP AUD trading, my initial stop loss is 260 pips.