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    My trading plan EOD PUTTING IT ALL TOGETHER

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    matk

    Posts : 50
    Join date : 2010-08-25

    My trading plan EOD PUTTING IT ALL TOGETHER

    Post  matk on Fri Sep 10, 2010 10:47 pm

    Hi Chaps


    Some time ago I took 3 months off from trading, no charts, no books, no trading . Essentially I needed a break, I had learned a lot but had
    failed to put together what I knew, in a consistent trading plan and trade execution.

    Over a month ago I started to read trading books , I was looking for powerfull entry reversal signals. I came to realize that 2-3 day signals where more
    powerfull than a one day pin bar for example. I am keen on bullish/bearinsh engulfing patterns and morning and evening 3 day reversal patterns.

    However using pro real time to find these signals , I soon came to realize that there was an abundance of these, and that they where not all
    born equal. Most charts where a mess no clear trend Bullish signals at the top of a daily swing high, etc.

    I made a few mistakes in my analysis I, I identified a great bullish engulfing on a bullish DAILY chart showing swing Low ,High Hl HH then a pull back what I had
    failed to appreciate was the bigger picture the bearish swing patterns on the WEEKLY TIME FRAME. Putting things into perspective the daily move was merely a pull back
    on the WEEKLY down trend . So the real market was Bearish not bullish according to the daily pattern. Of course when the daily price hits the WEEKLY trend line or
    a weekly S&R zone price then resumes its down trend.

    What I came to realize was that the :

    No 1 priority is to identify the underlying trend for your time frame mine is EOD as it is this momentum that will make the difference
    beween a depleting acc and a swelling acc. This done by marking the weekly swing 3 bar reversal HHs HLs or LLs LHs. as the case may be, then picking the
    ones that have a decent price difference between the HHs or LLs. Check the angle of the trend 45 degrees is ok and the percentage gain/decrease of
    price from the start of the movement to the end in case of only a few swings. Avoid shallow angled trends.

    No 2 priority A reaction/bounce at a KEY WEEKLY support and res zone with mutiple hits. Weekly is the higher time frame as I am looking for a daily signal.

    No 3 Confuence of a Monthly Pivot Point/ and or monthly buy/sell zone and or fib level at this weekly S&R Zone.

    No 4 The quality of the actual reversal signal, bar combo.

    No 5 Was the bounce off or over trend line



    I am not suggesting that I have discovered any thing new, Its a matter of putting things into perspective
    and realizing what matters most.

    This is all work in progress I am learning like you to hone my trading skills seeing what works and what does not.
    No doubt failed and winning trades will arise from great set ups and poor alike,

    I wellcome all comments

    For Example as a minimum to trade Longs I would accept a L followed by a H followed by a HL followed by a HH, I would trade the pull back at the 50% or 62% fib To Key weekly R&S and ideally prev HH. I would want to trade from a minimum of a daily rejection or reversal candle but better still a 2 day bullish signal like a Bullish engulfing, indicating rejection at a place of WEEKLY MULTIPLE R&S . I want to see a decent price change between The H and HH and L and HL. The ideal pattern is L, H, HL, HH, HL, HH, and a bullish signal at KEY WEEKLY S&R and idealy at the same level as the prev HH or at. In addition confluence of a monthly pivot point and or fib level and weekly S&R

    A short would be a weekly H, L, LH, LL, LH, LL, then a pull back to KEY Weekly S&R level, complete with a multiple bearish reversal pattern or decent pin bar or gapped up decent sized bearish candle. And confluence off a monthly pivotpoint and or fib level.


    .. Alternatively an established trend with muliple HH HLs etc.

    You will see charts of real trades with the above marked weekly swings and a short summery of
    the reason for the trade confluence etc.

    Regards

    Mark

















    Last edited by matk on Sun Sep 19, 2010 12:43 pm; edited 1 time in total
    avatar
    Badger1
    Admin

    Posts : 419
    Join date : 2009-09-27

    Re: My trading plan EOD PUTTING IT ALL TOGETHER

    Post  Badger1 on Sat Sep 11, 2010 10:01 am

    Mark

    Congratulations on your realisations and formation of a trading plan.
    Looking forward to following how things progress.

    Badge



    matk

    Posts : 50
    Join date : 2010-08-25

    Re: My trading plan EOD PUTTING IT ALL TOGETHER

    Post  matk on Sat Sep 11, 2010 12:53 pm

    Badge

    Thanks for your response, I have yet to write up part 2
    ie My trade management rules of entry, rules of exit, taking money
    off the table, letting part run and stop loss management, some of these areas
    are new to me , however I have some ideas.

    regards
    avatar
    Wig

    Posts : 616
    Join date : 2009-10-02

    Re: My trading plan EOD PUTTING IT ALL TOGETHER

    Post  Wig on Sun Sep 12, 2010 11:44 pm

    Hi Matk,
    Sounds like a robust trading plan - great to see!

    I read somewhere that if you can't write your trading method down for someone, you dont' have one... not sure how true that is but I believe its a great base to build from.

    Re your method - by getting in on first pullback after H -L HH HL effectively you are looking to catch a bias change as early as possible and get in at the start of a new trend? Or is this primarily to confirm that the direction you are trading in is indeed with trend?

    cheers,
    Wig

    matk

    Posts : 50
    Join date : 2010-08-25

    Re: My trading plan EOD PUTTING IT ALL TOGETHER

    Post  matk on Mon Sep 13, 2010 7:38 pm


    Hi Wig

    Thanks for your interest, I shall be expanding on my written plan to cover stops , entry typs,
    and trade management. i believe I have the basics, its a matter of me tweaking and improving and practice.

    re your question the answer is both, to confirm trend and get in early, I am thinking of spliting my
    trade in two ie take 75% off the table at the first major S&R. Place stopp at BE and leave the rest to run
    moving the stop after price has broken pre determined weekly S&R.

    Regards Mark


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