Trader Sonskyn Trading Journal

Due to sudden changes in strength and weakness matches I decided to close quite a few trades early this morning.

Just to recap I am following a strategy based on a daily chart setup. The rules are simple:

1.       Only Currency Pairs of which one must be in the strong corner and the other in the weak corner….

2.       Only when my trend indicator confirms that the daily chart is trending up or down may I even look for entries.

3.       My signals are generated by an Oscillator indicating when the market is overbought or oversold.


Simple and easy, the catch is when you are eager to trade and you are looking at a daily chart the signals can take days to manifest…. So you need to SIT ON YOUR HANDS!


Current trades and their status…

1. AUDNZD: buy: 18/10/2012 The only rule I adhered to in this trade was the daily trend indicator showed a bullish trend…Stopped out as NZD is strengthening more than AUD.

2. USDJPY: buy: 22/10/2012 Here the only rule I broke was my oscillator showed overbought and I still took the trade. Luckily the strength and weakness match is still intact and the oscillator is moving into oversold positions so this trade should still work out fine. USD is weakening currently can make the trade slower. Still in profit of 25 pips.

3. NZDJPY: buy: 24/10/2012 All the rules where met in this trade and currently I am 104 pips in profit and all the indicators still look fine so I expect some good returns here. Doing very well here.

4. GBPCHF: sell: 29/10/2012 Now this is a perfect trade if I say so myself!! All my rules where met AND I had a lovely 61.8 Fib retracement to add more confidence. CHF is losing ground rapidly and GBP suddenly strengthening retesting the trend line resistance. Closed this trade and will wait for next trade, too much risk in the sudden changes.

5. EURGBP: buy: 30/10/2012 Another brilliant trade!! As it was confirmed with a trend line as support with a fib retracement on 61.8 exactly on the trend line!! Only snag here was that my daily trend indicator was not in place, but the trend line with the fib retracement overrides it. The GBP strengthened significantly causing me to close this trade. Will have to wait and see what happens with the EUR.

6. NZDCHF: Sell: 30/10/2012 Two of my three rules were not met here, 1 daily trend indicator and 2 both these currencies are relatively strong but flat at the moment, so anything can happen… But I took this trade because the Trend line is resistance supported by a Fib retracement of 61.8. Price action has a tendency to override my rules… So this could be a disaster, but I really believe in the combination of my oscillator and the trend line on the fib retracement…And this was almost a disaster! Closed this trade due to sudden CHF weakness and NZD strengthening.

7. CHFJPY: Buy: 31/10/2012 All three my rules where met so I took the trade and I am not in 66 pips profit so far!! With the continuing of the JPY weakness this should give us 100 pips plus.

8. EURJPY: buy: 31/10/2012 Now this is a brilliant trade if I have to say so myself!! All three my rules are met AND we have price action as confirmation: price bounced off the trend line on a 61.8 fib retracement! 64 pips profit and going strong, will have to watch this one as EUR is weakening as well.

9. EURNZD: buy: 31/10/2012 This is not such a good trade, must admit… daily trend indicator and strength match on this pair is not ideal, but the price bounced off a trend line and the oscillator gave a signal. This can go anywhere!! Had to close this trade, trend line was broken.

10. NZDCAD: buy : 1/11/2012 Two of my rules where met and the trend is strong, made use of a h4 setup to get entry into this trade.

Thank you and happy trading!!


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