So, I’ve been thinking of FINALLY joining in on EURO short party. The music’s louder, the drinks are made just a bit stronger, I can hear people laughing…yes, I think I will join the party.
So, I’ve discovered that blogging with any frequency is difficult when I set up weekly (monthly) trading plans and wait for them to trigger. Not to mention that once my plan is initiated, it doesn’t change much. What should I write about??!!?? I don’t know, but I will write on here as best I can…I am trying to at least once a week.
I’ll give you another peek into my thought process as I am looking at the week(s) to come.
Check out the Chart first, print it out…get a ruler and a protractor. That’s right, it is time to do some hand charting, I don’t do this every time, but it really helps me connect to the charts – removes the complexity of the computer, the clicking of the mouse, and the distractions of Facebook and twitter. If you are losing money and feel out of tune with the markets, print them out and draw on them, even if it’s nonsense, it will help – I promise.
First,I identify the areas of Support and Resistance on the weekly chart – S&R can be anything from where price stops and turns several times or where there is excess congestion before a breach of a certain line or price. Whole numbers are important, but I find in the JPY crosses that the xxx.50’s are important too. Then I check for Divergence between Price and the MACD. Did Price make a new low but the MACD didn’t, if so then I qualify if and then quantify the discrepancy. I draw my trend lines and my “anticipated” movement for the following week. I always take into account the Fundamentals that are upcoming as well as what kind of correlation the 65 EMA is giving me with my S&R and Trendlines.
The only missing piece is how I draw my FIBs – I use Fib Retracement and Fib Fan. I will explain these later since I don’t do them by hand and the way I draw them is extremely difficult to explain with a keyboard and mouse. I will try, but tonight it is late and I am off to bed.
Print out the charts (or your own) and draw on them – I’d love to see what some people come up with. Send me a comment if you will share them me, it would be much appreciated. Also, let me know your experience with hand charting – I am sure it will open your eyes!