boru's price action journal

Hello my name is boru , longtime lurker and struggling trader. I am a price action trader who has spent quite a few years on ET, TL, and BMT. I think a journal would help hold me accountable and help me become a better trader. At this time I'm going back to basics and am trading the SLA ,eventually I would like to incorporate the principles of amt and trade EOD , that is in the future. Any and comments are welcome I only ask that you remember the focus of this thread is PA.

 

Well, good luck in your journey, the road will have rocks and steep mountains but perseverance will take you to your destination wherever it is.

 

1. price makes a HH 3447.25 bought the RET
2. exit on close below DL
3. in hindsight shouldn't have taken this trade wasn't SLA
4. n/a
5. price made HH 3450.50 bought the RET
6.exit on close below DL
7. BO from TR(50-54) sold RET should have scratched sooner but I held this thru the rally price eventually dropped to 3441.75
8. exit on close above SL
9. price drops thru DL sold the RET (this wasn't strict SLA either) should have fanned the DL?
10. was getting desperate for a winner took profits at 50% of previous range (not SLA) seeing a pattern here
11. sold the RET was in chop probably should have put the mouse in the drawer
12. scratch
13. price was below DL LH's ? sold the RET
14. scratched on a HH had a fairly large basing action
15. price broke SL bought RET
16. exit on a close below DL
stopped for the day

 

Thanks Niko I have some work to do. I can see I already need to modify my trading plan. This posting to a public forum is somewhat disconcerting , have to think things out, no where to lurk lol.

 

Boru,

You've been around for some time to know why Db has encouraged keeping a journal. What happens is when you write something there's no hiding from that analysis. Others traders can comment on things that you might miss and can correct. I am glad you have started this journey and just focus on. By now you know all the theory and there's only so much of it. After the straight line thread the work needed to get better has been stripped of fat. From there you move onto to better observation and back testing of just one set up and there you have it. You don't need too much, just one functional set up and milk it to infinity.

Gringo

 

Thanks Gringo I feel like I've tried everything else. I'm going back to ground zero and take it one step at a time. watching you and others get better is also an inspiration. I'm grateful for all your posts too.

 

Unfortunately, there's been a neurological disconnect with the arrival of charting software and digital journals. Writing the journal and annotating the charts by hand is far superior to doing it via a keyboard, but even the digital aids focus and clarity.

And if that's not enough, one can always take a pad and pencil and find a quiet corner somewhere . . .

 

always did enjoy your command of the English language Db I got the hint thanks

 

2-5-14 the backstory
1. the daily chart made a LL 2-3 at 3425.25 showing weakness the last 2 days however show indecision
2. the 4 hr chart shows price testing the SL . my thinking is sellers have the upper hand as long as price is below SL, price is tracing HL's so momentum is slowing . not sure if its because sellers are backing up or buyers are being more aggressive.
3. the 60 min shows the lack of intent of buyers and sellers a little more clearly, small TR followed by a hinge where the top of the TR at 3447 is also the MP of the hinge with the low at 3439 lines up with the MP of the TR 3453 was a swing high I want to stay aware of
4. This is basically how I prepare for the day (open to suggestions) There are so many areas I need to work on I almost don't know where to start, so I'm going to keep this simple. I intend to follow the principles of SLA the entries based on RET's, my exits are going to be based on either a break of SL/DL, or LSH"s or LSL's. I need to do some testing on these because I have some fear issues I need to work thru (hence the journal)

 

Have you tried applying the methodology to the 1 hour chart? (Ghost Thread). Do it, find where you are in the hourly (In a trend, In the middle of an entry (Line break + RET) or in a congestion.

If you are in the latter, then you will have limits to that congestion (a R and a S), If you break out of that congestion you will be in a trend so you will have a 50% to watch, as well as the 50% of the trend that just finished.

There you have 4 levels to focus, 5 if you include the MP of the congestion.

What I do is to focus on those levels, but also pay attention to other areas where price might find interest in RT. Previous congestions, PDHs, PDLs. PMH, PML. OH, OL.

The trick, (I think) is not to wait for those levels to be hit with all your heart. But follow price in RT, when it stops look left and see if there is something important to focus on. If you have a line break and a RET at that level, perhaps you have something cooking, or not that is the game.

Acronym meanings are available on request