RISK DISCLAIMER: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Factory and/or myself (Jhig) will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
'09 - DMI+ADX Journal
by: Jhig
This journal will chronologize all my future trades as well as invoke discussion. My system involves risk managment, entry & exit strategy over a long timeframe. The only pairs I will trade will have low spread cost in which I will take advantage of their "affordability". My strategy is fairly simple. Unfortunately the indicators I use are NOT available in every trading platform. If you find my chosen indicators are not available for you, search google/yahoo. I'm sure someone has developed and made it available to the public.
INDICATORS
'09 - DMI+ADX Journal
by: Jhig
This journal will chronologize all my future trades as well as invoke discussion. My system involves risk managment, entry & exit strategy over a long timeframe. The only pairs I will trade will have low spread cost in which I will take advantage of their "affordability". My strategy is fairly simple. Unfortunately the indicators I use are NOT available in every trading platform. If you find my chosen indicators are not available for you, search google/yahoo. I'm sure someone has developed and made it available to the public.
INDICATORS
- EMA(21)
- ADX(14)
- DMI(14) plus/minus
- Aroon
CURRENCY PAIRS
- eur/usd
- usd/jpy
- eur/gbp
- eur/chf
TRADING TIMEFRAMES
- 4 Hour chart *(My Preferred Timeframe)*
- Daily
- Monthly
- Weekly
In the future, I'll write out my system, step by step (though if you have been trading for a while, I'm sure you already have an idea). Again, its a really simple system and most traders will probably catch on fast.
At this time it would be best to Learn how to use the indicators and get a good grasp on understanding how they work before puting them to use:
- EMA / http://www.investopedia.com/terms/e/ema.asp
- ADX / http://www.investopedia.com/terms/a/adx.asp
- DMI / http://www.investopedia.com/terms/d/dmi.asp
- Aroon / http://www.investopedia.com/terms/a/aroon.asp
... And here is what your chart will look like. (Your chart will probably not look exactly like mine due Metatrader usually combine ADX and DMI into a single indicator. Most other platforms seperate the two as two individual indicators.) But looking at my chart will give you some idea.