Trading Plan for 15mins timeframe 4 July 09

Establish Trend First
Go to Hourly chart to establish previous day’s direction/trend. Draw Fibonacci to establish key retracement / extension level

Indicators should align with Trend
Go to 15mins to ascertain if signals from various indicators are aligned and inline with direction/trend at Hourly chart to enter trade (Go see indicators set for 15mins timeframe)

Remember, indicators used must be able to show you momentum, strength and trend

Candlestick should align with Indicators
Signal from candle stick should align with the indicators and trend before entering trade.

Remember, key signals from candlestick are Hammer, Shooting Star, Engulfing and Doji (Go read up)

Ideal if chart pattern aligns
If the chart pattern is also aligned, it will be ideal for bigger profit target (Go read up)

Enter Trade?
If candle stick at alert is 8pips or more than 15pips, wait for retracement before entering trade

Go to 5mins to ascertain if it is indeed good before entering trade

Remember, avoid taking trade near resistance / support line

Stop Loss?
Stop Loss approximately 20 pips. If entry is right, should not go beyond 10pips OTM.

Exit Trade?
Target 10pips. If trend is strong at higher timeframe, expect profit to run more. Exit if near resistance / support line

Impact of news?
If there were news (impt ones), it might cause chaos to the market and trend might be disrupted momentarily. E.g. Oil and stocks for Euro and Gbp. Be wary of such news

Your trade results will show if you are doing what is correct or you are doing what you like

2 July 09 Follow the Rules for Gods Sake

Past 2 trades are bad. Indicator looks ok yet trade still ended up loss. Is it market choppy? Nope. Because I tried using trending tactic on a market that goes ranging 90% of the time? Nope.

Because I enter before all the rules are fulfilled. Loss more than I earn for this week.....

Your trade results will show if you are doing what is correct or you are doing what you like

2 July 09 Don't enter trade near key pivot point

Entered trade near the key pivot point is a bad decision. Candlestick went down and beyond my s/l. It was only at wee hours that price rebounded beyond my profit target. Avoid trading near key pivote point. If not, go for recent high/low as s/l


Your trade results will show if you are doing what is correct or you are doing what you like

Choppy Week to Trade?

Was looking at the announcements for this week at forexfactory and was shocked to see so many important ones coming out this week! (see those red folders...)

As what my trader friend said, this week is going to be rather choppy. For traders out there, be cautious...

Your trade results will show if you are doing what is correct or you are doing what you like

1July 09 Good Trade yet exited too early

Entered the trade at night when the setup was perfect. But I was OTM for quite a while and I started to question if my decision to enter was right. It was only then when about midnight that market started moving. Price went down real fast and hit close to my 10pips profit target. Unfortunately, it retrace at fast rate too. Fearing that it might reverse, I exited. There is small profit made but if I followed my rules, I would have had bigger profit.
Morale of the story: If you are prepared to set aside an amount to loss, take a plunge for bigger profit!

Your trade results will show if you are doing what is correct or you are doing what you like

30 June 09 Big Move after poor consumer confidence result

Last night's consumer confidence result was below forecast, causing USD pairs to move real big time.

EUROUSD went down more than 200pips over the night! If you hang on till midnight, 150pips of profit will be in your pocket.

Congrats to those who held on to trade last night.I only gotten a small profit out of the huge profit!

29 June 09 Good morning USDJPY

Early morning was a good trade for USDJPY. Market was in trend and ride with it for a 20pips profit.

Trading Hours GMT +8

If you are trading in South East Asia Timing, refer to the trading hours below.


Asia Timing is mostly in range. After 2pm, you will usually see market continuing the direction from previous day.

Use of Fibonacci

2 Uses of Fibonacci - For retracement and extension. But there are also other uses for Fibo.

Fibonacci can be a good resistance/support line. Therefore, setting target at / near Fibonacci is ideal.

Strength of trend is determined at the various percentile. More than 61.8% indicates strong trend, 50% is neutral, 31.8% or less indicates weak trend.

Sometimes setup can fail

Succesful day trading during Asia Timing (10 pips)

Setup can be invalidated at times. In the later part of the night, the price is in trend and exceeded the initial entry price.

Should probably consider using the recent low as the s/l. Note that s/l in recent low is more than 30 pips - therefore there must be decision what the s/l should be set at.

Another attempt to enter trade when setup is good. Later in the night, the price moved in trend.

Potential further profits of 20-25 pips if held position longer. Should probably consider the recent low as s/l.

Key News to note when trading Forex

Employment Growth
Interest Rate decisions
Trade Balance
Gross Domestic Product
Retail Sales
Durable Goods
Inflation reports (Consumer Price Index and Producer Price Index)
Foreign Purchases report (TIC Data)