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....

[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.

[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.

[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

[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.