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Pip Range Divergence Trading Journal

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Hi one and all,

My journey with Pip range charts started over 7 years ago and culminated with my development of Autofocusfx. I've always enjoyed trading with pip range charts and feel they offer a decisive edge over time based charts.

I use a 5 pip range chart, I avoid any CHF pairs and JPY pairs for the simple reason I do not want to be in a trade when they manipulate the market. What the SNB did with the Franc and the Euro was absolutely bonkers. My main pairs are GBPAUD, GBPUSD, EURUSD, EURAUD. I am a firm believer in mastering a few pairs rather than trying to trade too many pairs. I do not trade positively correlated pairs at the same time....to do so is to simply double your risk on the same outcome.

I have a lot of examples on my Instagram page. My username is @Flipfloptrader.

I've kept up a daily journal for the better part of 6 months and will continue my journey here. Feel free to join in and ask any questions.

If you wish to construct Pip range charts in MT4 please see this post. Or you can view the video here.

My settings for Ichimoku are 9, 16, 52 and I blank out Chikou Span as that doesn't serve any purpose in my trading.

Edit on 16th Jan 2018: I occasionally do include a non divergence trade and as such I guess this could just be called a trading journal.
 
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The format I usually follow is to post the result of my trade/s with some backround as to why I took the trade. I've found it highly beneficial keeping a journal to allow me to look back over my trades and see the reasons why I took them. It has increased my profitability of that I'm sure.

Today's first trade was a quick GBPUSD long. There's been plenty of movement prior to the London open with the potential for a lot more if Article 50 gets invoked unannounced.

Generally I will try and stay within the overall trend and I will trade the divergence between price and the indicator called the Awesome Oscillator. Besides having a fantastic name, it's also a fantastic oscillator for spotting divergence.

Price dropped to a key level as seen here:





Upon seeing a couple of pinbars on the range bar chart, I took my entry at 1.21369 and targeted an even +10 pips.




Any questions let me know.
 

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Euro crosses a very different picture to GBP with relatively low volatility.

EURAUD popped to near session highs and created a nice setup. I was holding for 1.4085 but chickened out and exited at 1.4087 and sure enough, 1.4085 was hit seconds later ;)

 

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Final trade of the evening on GBPAUD. Price punched lower past its daily average range which is currently sitting around 112 pips for the last week. Price made lower lows whilst the AO (Awesome Oscillator) made higher lows to complete divergence. Again, I wasn't greedy with the profit and settled for +12.



A good day's work. Back tomorrow.
 

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Hello one and all,

Hump day is here.

For the last 2 days in a row, the Pound has experienced a swift move right on 6AM UK time. I'm not seeing any news behind the move but seems awfully coincidental the big move has happened at the same time the last two days.

Either way, it presented a great opportunity on GBPAUD this morning. Firstly, a chart for some context. GBPAUD rammed straight into the 4 hour 85 EMA. Bingo.



In a significant downtrend that's a great sign.

On the pip range chart, I waited for a sign the move was finishing and entered after a couple of bearish candles. Exited for +28. Price made a significant higher high was the AO (Awesome Oscillator) made a double top.

 

Spinning D

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Have you looked back down the chart to see if this 0600 move has happened before this week??
 

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Have you looked back down the chart to see if this 0600 move has happened before this week??
Hi SpinningD,

As we're only 3 days into the week, there isn't a huge amount of days to look at except it occurred yesterday.
 

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It's been a while since I've had a trade on EURAUD. A 4 hour trade and it certainly took its time to develop.

The majority of price action favours the downside and I spotted a reasonable setup on the turn of the European open. Price was making lower highs whilst the AO made higher lows. Plus price was dancing along the daily open area which I often like to use.



I decided to exit short of my ultimate goal of 1.3994 due to price stalling around the 1.4000 handle and I was itching to book a profit. Price is nicely contained and could ultimately go quite a bit lower but I'm happy with my +20.
 

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Final trade of the night on GBPUSD. Post UK employment figures, GBPUSD took a real dive on not that bad data.

Price reached a nice area of support and with the nice pinbar I took my entry. I was aiming for the BRN of 1.2200 and was pleased with +14 pips to close the night.



Plenty of action overnight with the FOMC announcement, good luck to anyone trading.
 

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Hi one and all,

It's very rare I trade before the European open but I was watching the Aussie data release at 10.30 local time and I saw a nice setup and thought it was a good opportunity.

Here's the 15 minute chart showing price reaching the 85 EMA and also the cam level. I love these confluences.



On the pip range chart, price made a higher high whilst the AO didn't. The trade took an awful lot longer than I anticipated and teased me several times with 1.3945 area. I extended my original TP by 6 pips to 1.3937 for a nice +29 pip trade to start the day.



Plenty of data coming out during the London session.
 

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A frustrating trade on GBPAUD. I saw the bounce from daily lows and felt price had reached a level where it had a chance of going lower again. Price made a series of bearish pinbars and the AO made a nice setup.

Perhaps targeted a bit too much at 1.5918 and had the opportunity to take +23 but didn't and ended up closing for +3. I certainly didn't want to let the trade turn into a loss. And the golden rule is, there are always better setups.

 

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Perhaps a slightly fortuitous trade here but I knew I wanted to be out pre BOE announcement.

After exiting my first GBPAUD trade for +3, I waited for a new setup. GBPAUD rallied higher but again looked like faltering with some bearish PA.

Exited for +15.

 

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Yep discretion is always the better part of valour.Run away live to fight another day really is a good maxim for traders
 

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Last day of the week and a nice trade to start the session off with. GBPAUD trade has finished and it took a couple of bites to get it right. Intially entered on the belief it was rallying at the start of the London open for a potential to reverse. The mistake I made was entering without any sign of it slowing down and I wasn't really that close to any useful support/resistance levels. That being said, I let the trade develop and once the double top was made and the AO made a significant lower high, I took that as a good sign and entered again. A good result overall with +10 and +30 respectively.



I also had a trade on EURUSD as it's not correlated to GBPAUD. This trade had a lot to do with where it was positioned in relation to resistance. It was around 4 pips shy of a level I felt would be a key area and decided it was a worthwhile trade. I always view my trades as a series of expectancy and as I long as I feel I have an edge by entering at the correct level, I'll always take the trade.

 

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Bit of a slow start to the week thus far, waiting for some action!

 

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Only the one trade last night and perhaps a fortunate exit. GBPAUD had the look of bouncing from well used support and as I hadn't had a trade yet, I probably entered a few pips too soon. I was originally looking for a 30+ pip trade but it was getting close to midnight and I was extremely tired and wanted to bank some pips. I closed the trade for +22 which turned out to be a smart exit as the Pound dropped significantly not long after that.



Hopefully a more active session later.
 

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Hi one and all,

Busy Asian session with plenty of movement, hoping some opportunities arise during London session.
 

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First trade of the night with EURAUD. I'd been watching it climb all day and I was extremely tempted to get involved earlier but past experience has taught me to wait for my window and that paid off again.

It'll be interesting to see if the upside momentum can continue or will revert back into the downtrend?

 

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Post news trade on GBPUSD, it had a mighty rise and 1.2460 for me was just too good an area to turn down for a chance that it might come off several pips. Price was still making higher highs whilst the AO didn't.

+14 pips.

 
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