Hi Theo and thank you.

Following your advice I already print out this chart to have it as a reference next to my monitor. The daily trade videos you did at the beginning of the year were very very helpful.

I'm starting to backtest a couple of pairs. It doesn´t only help to give some confidence and statistics, but also trains the eye too.

You are right, the daily doesn't offer high trade frecuency. I had the plan to trade multiple pairs using the Daily (without going to the extreme of wrecking my trade management and overall risk). I´ll have a look at maybe trading the 4H chart and see if I remain comfortable with that.

Quick question: for my renko charts I use 10 as the size of the brick (like you show on your forex basic section). Do you believe this is a good parameter or should I use a smaller number?

Thank you again Theo and all the best.

Hi Theo.

During this past couple of weeks, I was able to switch to the MT4 platform on my broker. I was also able to add many of the indicators I was using, as well as your MT4 package for easier trading.

Once again, I wanted to share with you and everyone else what I've been watching on the usdjpy this past few days.

Based on some of the videos you and Rob posted it, I decided to use 3 charts for my trading: The first one is a standard Daily Chart, the second one an approximation between 1H and 4H chart (what I would call slow moving chart). Finally the third is a fast moving chart, between 30M and 5M.

Each chart has its purpose displayed on the top.

To clarify: the Daily gives me an overall view of the market. In this case, the market (layer) has been trending up until recently and its now showing a period of retracement. This could also be the start of a directional change. I have marked levels of support & resistance found on the daily on all three charts.

The 1H/4H chart also gives me a view of the market for that faster layer. As shown, after trending up in run out of steam and created a reversal pattern (double top) at the resistance level found on the Daily chart. It is now trending down, within the retracement of the Daily chart. It's now on its 3rd wave.

The last fast pacing chart is the one I use for entry. In this case, once the reversal pattern form on the middle chart, I looked for an entry within the last leg of the Double Top, like you always show on your videos. It would be a bearish trend continuation pattern (LL and LH) on that lower layer shown by this last chart.

As you can see, my Break Even point is the neck of the Double Top. This is the part where I'm still requiring some feedback. For some that could very well be the Profit Target. However, I'm always inclined to use an Entry and a Stop Loss based on the 30M chart, but aim for a TP based on the looking at the 4H chart. It certainly gives a better R:R ratio, but I'm unsure if this is a good practice or am I missing something?

Next trade: Apart from the support found at 105.50 on the Daily, I notice there is confluence with a Fibonacci level. Not a common practice for me to use Fib levels, but interesting that this 50% Fib confluence exists. If I see an indecision candle forming on the Daily an a reversal pattern on the 4H, I will look for an entry on the 30M to the upside aiming at the Resistance levels seen on the 4H.

On the other hand, if this support level is broken on the Daily, it could be seen as the 4th wave on the 4H chart. I would go short as bearish continuation trend aiming at the 104.00 support level from the Daily, with a Break Even point at the 105.00 (marked by the Free ATM Support Resistance indicator on the 4H chart).

That would be all. I hope my thinking process is adequate and my explanation clear enough. Like last time, any advice will be appreciated.

Thank you. 

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