Flags, Pennants - my interpretation

I should have had a sell stop a bit lower down on the nzdusd trade, wait for the breakout to be significant, instead I've got caught on the wrong side of the market again. I will keep my position open and hope for price to drop in the coming days.

...and if it goes further against you?
 
...and if it goes further against you?

Hi,

I exited for a .5R loss.

I will now keep to my bread and butter bull/bear flag signals or wedges which indicate continuation of the trend.

I still have my bund trade open, nearly 2R up on that.

I started this endeavour with a small trading account. I had enough money for 15 trades. I've taken a few losses now.

I will step back and refocus.
 
Hi,

I exited for a .5R loss.

I will now keep to my bread and butter bull/bear flag signals or wedges which indicate continuation of the trend.

I still have my bund trade open, nearly 2R up on that.

I started this endeavour with a small trading account. I had enough money for 15 trades. I've taken a few losses now.

I will step back and refocus.

Well done for taking the loss (y). Hanging on in hope - when the rationale for your trade has disappeared - is an account destroyer.
 
Thanks Barjon.

You helped in the process :)

I have exited my Bund trade manually for a bit under a 2R gain. The MacD is looking like it is turning over and I feel it's best to bank some profits.
 
USDJPY Bull flag

I have decided to simplify my rules and take bull flags that form after prolonged sell offs that are in the first or second wave of buying, and vice versa for bear flags.

I'm being quite aggressive with this usdjpy trade then as a possible trend reversal unfolds. If we look at a line chart we can see how there is a higher high, then a lower high then another higher high, although this is not clear in a candlestick chart. This was a technique I was recently made aware of and I'm interested to see if it is valid in practice.

I'm long on this bull flag in any case.
 

Attachments

  • ujtrendreversal.jpg
    ujtrendreversal.jpg
    80.2 KB · Views: 385
  • ujtrendreversalflag.jpg
    ujtrendreversalflag.jpg
    80.6 KB · Views: 443
USDCHF - 4 hour bear flag

I'm short on this, aiming for 2R.
 

Attachments

  • usdchf0904.jpg
    usdchf0904.jpg
    116.8 KB · Views: 429
GBPUSD - 4 hour bull flag

I'm long on this bull flag, take profit target shown.
 

Attachments

  • gu0904.jpg
    gu0904.jpg
    112.1 KB · Views: 419
West Texas Oil - caught off guard

I anticipated a flag forming here on this chart, but not one that pulled back so deeply so I had turned my attention elsewhere over the last few days. I looked back at this chart and saw that a great flag had triggered, alas I am not in this trade.

This is a lesson learned, flags can pull back quite severely.
 

Attachments

  • wtiflag.jpg
    wtiflag.jpg
    152.3 KB · Views: 421
My definition of a pole is now at least 4 consecutive bars of ideally the same colour, will generally not accept more than one bar being of the other colour.

I have dabbled with one hour and four hour charts as I have some spare time atm, but will try to focus on daily charts from now on.
 
West Texas Oil 1:1 trade

It is technically okay to enter on the high of the pole, the rewards are much reduced however. One might argue that I am chasing the market, but it is a valid entry point and it is thus far a winning signal so I have decided to try this out with this west texas oil trade. The pattern has shown itself to be valid so it is just a case of whether price can follow through to a greater extent. I'm shooting for a 1R gain.
 

Attachments

  • westtexas1104.jpg
    westtexas1104.jpg
    130.4 KB · Views: 404
Edge is present here - GBPNZD

I haven't picked particularly good setups lately, but this one fits my plan and I'm more confident about it than any I've taken recently. It is important to be patient for signals that fit rather than trade sub-par signals, and I am trying to improve in this regard. You can see from a past gbpusd trade how when price makes a new high it often pulls back to the most recent high which can be lower down.
 

Attachments

  • gbpusdgbpnzd.jpg
    gbpusdgbpnzd.jpg
    113.1 KB · Views: 303
EURNZD: 1 hour pennant

A trade to add to my GBPNZD daily trade, this time on the one hour chart, a really nice pennant pattern:

One pic pre-trade, one pic post entry...
 

Attachments

  • eurnzd1604.jpg
    eurnzd1604.jpg
    110 KB · Views: 279
  • eurnzd16042.jpg
    eurnzd16042.jpg
    126.5 KB · Views: 307
Interesting journal. Will keep a close eye on this one as I love trading these kinds of setups myself
 
Top