Dummy Trade & Battle Plan practice AUDUSD 9 JUl

[Simon Dyde]

Hi All,

Please find attached a screenshot of today’s dummy trade and battle plan run through. I find, with practice, I’m getting a lot quicker at this.

My battle plan was as follows:

From D1 price is below the MOR, sellers are in control. There is no eco news. Price is in new low territory and it is clear below of trend lines and major support levels.

From M15: Gann 50 coincides with buyers support level from yesterday at minus 60 pips.

Statement of intent: Sell on bearish engulfing candle if reward/risk is greater than 2.

0930 Bear engulfer prints. Stop loss + 18. Target – 63 reward/risk = 3 ish.

Sell @ 0.7463, Stop [email protected], Take profit@ 0.7427

Automatic exit at the Take Profit 1300 candle.

Result plus 36 pips.

Outlook: look for sell entries if signalled by DOR.

Regards,

Simon

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[John Murphy]

Simon,

Looks good. I’m assuming that your engulfing candle ‘includes’ the two previous ones that engulf the buy candle earlier. My one thought would be Rich’s preference to see momentum clear of the DOR so that there is a higher level of confidence that the direction will continue. Did you consider that when looking at this trade or were you comfortable that the selling power had done enough to negate the attraction of the DOR?

I’m looking at GBPUSD today and much of the action (i.e. little) is centred around the DOR so I’m waiting for a positive down move away from this area before I get interested.

John

[Simon Dyde]

Yes John, I aim to only enter on a candle that is aligned with MOR and control and that breaks strongly out of the DOR , engulfing the opposition as it goes. I see what you’re saying about strictly applying the FXBA “engulfing” definition (straight up, straight down etc) and I had the same hesitation myself, but I decided it’s better to be holding and managing a position and learning all of that than looking for “picture perfect” entries and never pulling the trigger.

Also the bigger picture swayed it for me. On D1 there is nothing technically to stop the price falling forever. So it would be good to be holding a short position. However on this mornings M15 things looked particularly tight with yesterdays support levels so close. Waiting for a further engulfer way outside the DOR would have destroyed the reward/risk and an opportunity lost, I think.

I was pleased with the exit as before FXBA and Rich’s teaching about looking for target confluences I wouldn’t have had a clue where to put my target.

The levels are holding today, but if they’re broken overnight/tomorrow I’ll definitely be looking for further sells if the DOR says so!

I would happily have had money on this one so I think my next trade will be live.

Regards,

Simon

 

[Rich Fitton]

Great stuff Simon!

And I’m glad you’re finding the exit targets helpful. It can sometimes seem a bit spooky to see different target levels come into alignment.

[David Coe]

Please find my first attempt at my battle plan..The D1 price is below the MOR. The trend shows sellers are in control.

No eco news, so if when setting up DOR tomorrow, if sellers are still in control then my aim is to sell and aim for the 23.6 % fib retracement which gives a target of 0.64706…  Resistance is .67205..

Any thoughts welcome…

Dave

[John Murphy]

Dave,

I see that you have gone back to April this year. I’d suggest you go back further in time as I believe there are a couple of major trendlines to plot for this pair. Also, as the trend is down you should be looking to join highs rather than lows. Your Fibonacci seems to be using the trendline to measure from, I’m not sure you can do that. The yellow is very difficult to read against the pink but I’d suggest the 0 on the fib should be at the bottom of the larger green candle.

Did you plot Support and Resistance to see where targets might be?

Regards

John

 

[David Coe]

Hi John

Thanks for the constructive reply…Yep whilst nodding off last night I realized I had drawn the trendline on the lows and it should of been on the highs ! Doh !…I had actually tried to get the zero on the bottom of the candle you are referring to but now ive expanded it, I can see that its not the zero…I was using the fib as a target… Back to watching the lesson and I will try again..

Cheers

Dave

[Rich Fitton]

Hi David,

Be sure to post up the next plan you draft and we’ll take a look.

It’s all good practice and the odd slip-up you make along the way? Well, they are just the little lessons you needed to take on board as you develop your skills. It’s all stuff that’ll continue to move you forward in your understanding 🙂

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