Stoch divergence and S/R journal

[Fabila]

Hi there,
I will be posting my daily trades here using stochastic divergence across 5 min/15min/30min/1hr/4hr/daily timeframes. Trades will be removed Support and Resistance levels, and preferably taken together with the tendency.

I am doing this as it will give me some discipline. My losing trades are also posted, and that's just embarrassing so should allow me to take trades which only fit my personal system.

EDIT
What's the machine?

Pretty easy, look up stochastic divergence!
I also like to'attempt' (hmmm you'll realize that isn't necessarily true ) to trade with the prevailing tendency.

So, what do I do.

I'attempt' (ha that you again) to trade when the price makes a low or high, and also the stochs are at/near the 80/20 amounts on 5mim/15 min charts.

The stochs will then turn up/down with price to show a change in direction.
I DO NOT TRADE at This Time.

So, as an example, in the case of a sell, a new high will be made, stochs are going to be close 80, on the 5 min and 15 min chart (my favourite settings), then price will begin to fall backagain. I DO NOT TRADE Now.

Prices will stop and go back up to make a new high, and should the new high is made, with divergence on the 5 min or 15 min chart (preferably both), then will enter the transaction. I seldom enter if there's just divergence showing on the 5 min chart since this is very choppy. When the signal is given on the two charts then it's much stronger.

Notice that trades should be together with the prevailing tendency (so the overall trend in this illuion ought to be down). It is also very important to trade into Resistance (for a sell). The examples I provide in the journal ought to show you what I mean.

Settings
5 min Chart stochs 8/2/2
15 min charts stochs 8/3/3

NOTE: If divergence occurs on the 15 min chart then this is an excellent signal. Trades can be taken with 15 min divergence (pref with some evidence showing on the 30min/1 hour chart) even if it doesn't appear on the 5 min chart.

I highly recommend you read the Nobraintertrades site, together with descriptions of common chart formations, particularly the teacup, quasimodo along with the bottom of the barrel.

Additionally, I don't trade (ha! That you again) involving 10.30am-12.30pm UK time as liquidity tends to diminish and prices can just get stuck.

I believe thats it, I am hoping this journal teaches me some discipline, and possibly helps some people looking to analyse/understand price action and what exactly an undisciplined trader resembles!

[Fabila]

Revised first TP degree around .8620 as can be in an area of previous Resistance degree,

also have taken a hedging stake long on EURGBP, stoch divergence on 15 and 30 minute chart which is with the overall trend-see charts below.
No divergence on 5 minutes chart which would be perfect.
Not perfect to be both short and long I know, but playing the stoch divergence when it is using the general trend is a fantastic idea. I'm less certain of the transaction since there isn't any divergence on the 5 minute chart, however, we shall see....
https://www.nigeriaforextrading.com/attachments/15281242661776344404.jpg
https://www.nigeriaforextrading.com/attachments/15281242681652244169.jpg

[Fabila]

Strong divergence on 5 min chart and price is approaching 50% level BUT!!!

I do not enter just on 5 min divergence, it is too choppy/interchangeable. I want to see it replied on the 15 min chart too. And while it seems like something is going on, there is not any new high created but with a much lower stoch reading so that I'll pass. There has to be an obvious/visible divergence on the stochs, together with a new low/high, in order to get me to exchange.
https://www.nigeriaforextrading.com/attachments/1528124263655983330.jpg
https://www.nigeriaforextrading.com/attachments/15281242641936757800.jpg

[Fabila]

Price has moved in to resistance, 15 min not showing much divergence however there's some, same with 5 min chart.
1 minute chart showing all of the symptoms of a beautiful reversal creation. Buy at 1.3677.

First illuion of lack of subject, there isn't much actual divergence on these charts-I've been scammed buy the Resistance zone, price behaviour around it, the fact that the 30 minute stoch is also moving to oversold territory,and the stoch behaviour on 15min/5min charts.
Let's see how this pans out.
https://www.nigeriaforextrading.com/attachments/1528124270958997248.jpg
https://www.nigeriaforextrading.com/attachments/1528124271779197526.jpg

[Fabila]

Yet another lesson learned...

[Fabila]

Am still brief on this so it's working out ok. Ish.

[Fabila]

yes it's only before news but....
Eurgbp weakness
large 15 minutes divergence
less so on 5 min
Price'should' bounce off 15 minute resistance.
News could f**k up this bigtime though
https://www.nigeriaforextrading.com/attachments/15281242731163720018.jpg

[Fabila]

2nd TP reached at .8600
Am still in 50 percent -stoch divergence is a strong signal-I just like to take some profits early, but want to depart as much as I can on the desk to maximise the risk/reward.

[Fabila]

@ 1.5898 (take some off the table at an 00 number).

SL moved up slightly-no free trade yet. Want to see this move up to 1.5950 but may not occur in this session

[Fabila]

Am twitchy since this transaction is contrary to the strong move upward and price is napping on /close some TLs (see below). Final profit shot at 0.8590 (approx 60 pips). Not a great RR ratio on this one, I like to hold on for longer, possess an eary profit target and only allow the trade run, rather than scale from this transaction. But because it's contrary to the tendency, I think that it's wise to take profits off the table.
https://www.nigeriaforextrading.com/attachments/1528124275681151911.jpg

[Fabila]

First profit taken at 40 points a pleasant 2.5:1 RR, I then moved stop to breakeven and let it ride. Price came down and took out the SL, then price reversed back up to where I would've had my closing, and big, profit target with over 2/3 of this trade still on at approx 4:1 RR.
One thing I am seriously considering isn't moving a trade to breakeven/a free trade once a particular level is reached. I think you've got to keep the SL, or if you do move it up, then not too much, to give your trade some room to work. The big boys know we're following in their footsteps, and will attempt to shake us out-this one is a fantastic example.

[Fabila]

Currently looking at gbusd for quite a while thanks to 15 minutes divergence and USCHF for a short (VERY strong divergence on this on 5/15/30 minutes tfs).

BUT discipline is shooting hold-I like to see price movement lower or higher and then show strong divergence after the truth, rather on the 5 minutes in addition to the 15 minutes for confirmation.

Price on USCHF has not broken to new highs with this stoch divergence so I'll pass.

Additionally, it really looks like it wants to crack higher on longer term charts....
https://www.nigeriaforextrading.com/attachments/15281242771546752047.jpg
https://www.nigeriaforextrading.com/attachments/1528124279461585928.jpg

[Fabila]

Strong 15 minutes divergence on both, and both are trading in resistance places.
Additionally, for EURUSD, lovely 5 minute divergence too, so this is actually the stronger trade, especially with EURGBP looking like it wanted to rise.
Entrance eurusd 1.3662
Entrance GBPUSD 1.5910
ANd I then freaked and shut out both in 10 pips profit.
On reflection, the EURUSD must happen to be theonly trade to take, as it fulfilled the standards for divergence on 5min and 15 minutes charts. I was not happy with it though, as it was a really sharp/violent down movement this afternoon, and they are not normally good for business. I had been wrong on this one, but also kind of appropriate too. There will be better setups, with price action.
As I read someplace better to be out rahter than in and regretting it.
See chart below for EURUSD set up.
https://www.nigeriaforextrading.com/attachments/1528124281431334743.jpg
https://www.nigeriaforextrading.com/attachments/15281242831863660362.jpg

[Fabila]

Showing powerful divergence about 4 hour and one hour charts, pointing at down a move.
Clearly it is against the long term trend, so if it occurs, timing is everything. Additionally, price on the selling side is more inclined to undo on you as buyers come in to keep the trend. Unless I see something awesome I won't be taking a position, but it is good to have this info in your mind....
https://www.nigeriaforextrading.com/attachments/15281242841974995503.jpg
https://www.nigeriaforextrading.com/attachments/1528124286450990363.jpg

[Fabila]

Price can be at an area of resistance when you look at a daily chart, the highs of 20th and 27th October. Looks like it might drop from here, I will be watching closely

[Fabila]

Aahhhh I talk myself into those things with my analysis...
Sell place opened at 36.88 - first TP .3651

Slight divergence about 5 minute chart, price was shing into resistance zone following earlier sharp drop (which indies a deficiency of buying appetite). Also in the primary 50/62% fib retracement zone. And all of the longterm stuff I had been speaking about, so have taken the short. Let us see how this one pans out
https://www.nigeriaforextrading.com/attachments/15281242881348705226.jpg

[Fabila]

That's a record-stopped out by some news which isn't showing on almost any calendar?!
Note to self, stay with the trend, do not expect the flip of a longterm trend before it's happened. Wait for it, then jump on board.
Nevertheless, if I had kept the first long I opened I'd be quids in. Discipline discipline discipline...

[Fabila]

So they've both taken up and would have given me about 4 or 5:1 RR.
Need to adhere to keeping with the trend and trading divergence on 15 min like I am supposed to.

[Fabila]

Missed it since I had been faffing around. What was that discipline thing ?
Divergence on 5 minutes, big divergence on 15 minutes and 30 minutes, against the trend BUT with such powerful divergence about 3 timeframes 1 hour stoch moving into overbought region price reaching resistance levels (just look at a 1 hour chart) I'd have been all over this.
https://www.nigeriaforextrading.com/attachments/15281242901105425517.jpg
https://www.nigeriaforextrading.com/attachments/15281242911965087879.jpg

[Fabila]

Ist trade, short EURGBP in 0.8650.

Reason-massive stoch divergence about 1 hour chart, divergence on 30 min chart. Has attained prev resistance (see daily and 4 hr chart).
Reasons to be fearful-it is against the primary trend so not a best trade, but using such large divergence about 1 hour/30 min SR degree, it seems a worthwhile trade.
First TP degree .8605
https://www.nigeriaforextrading.com/attachments/15281242612036873041.jpg