Forex Signals by Point and Figure Currency Charts

This is an image of my latest trading strategy where I get my trading signals from Point and Figure currency charts aka P&F.

This is a description of a point and figure chart that I got for www.oanda.com:

Point & Figure (P&F) charts focus on price movements and do not present a linear representation of time. By removing the less-significant price movements (considered as noise), P&F charts potentially make it easier for traders to identify support/resistance levels and market trend lines.
In summary, P&F charts give traders a different perspective of the market comparing to the more traditional bar or candlestick charts and hence can be used as another guide to better understand the structure of the forex market.Point & Figure (P&F) charts focus on price movements and do not present a linear representation of time. By removing the less-significant price movements (considered as noise), P&F charts potentially make it easier for traders to identify support/resistance levels and market trend lines.
In summary, P&F charts give traders a different perspective of the market comparing to the more traditional bar or candlestick charts and hence can be used as another guide to better understand the structure of the forex market.

Click Here to go to the Oanda P&F webpage.

I am trading a demo account right now from Oanda and I am doing great! All my winners are great trades and even my losers are good trades also. The reason why I appreciate even my losers is because I was able to always get out when the market is about to turn. Then I take the reverse trade. It is just fantastic. I will try to follow the P&F charts and if I really do very well on my Oanda Demo Account then I will probably fund my real trading account again.

Trade Update, AUDJPY Long 5K

I have recently closed my USDJPY shorts. Bagged $160+. Not bad

It seems like the US stimulus plans are slowly creeping into currency traders' psyche. I feel that they are starting to lean on going USD heavy. I may be wrong. I backed up my opinion with 5k long on AUDJPY. I saw that the AU economy is still strong and JP will return to carry trading with their confidence returning due to the reason that the US may skirt recesion.

GBP has been strong during the last three days. If I had more capital, I would have traded some longs on any pair with GBP.

Here is my study of last weeks currency action:

USDJPY Carry Trade or Bust

Whoa! JPY is in a bull run. What bull run? It is the carry trade exits you dummy. With the impending US rate cut of 0.5% everybody is running to the exits. Mr. Ben Bernake has signaled that the US will use "insurance" to beat inflation. Whatever that means, they are taking recession head on. Good for them. But with the rates going down, well-moneyed traders are hitting the exits and rushing to the EUR and CHF. If you would look at the charts of EURJPY and CHFJPY, it seems like its drawn by a straightedge. But the bets are probably heavier on the CHF because the chart is falling on the EURCHF.

As for my last trade on the USDJPY, my earlier 2 trades are big winners now but the latter 2 trades went bust. Stop hunting who-knows-who got them, after the prices got to 110.00, it sunk like stone on water. I am still keeping my two winners. I don't know when I will close, but right now I am more inclined to close it when prices drops below 100 ;) . I am not sure it will happen but I have a feeling that it would go down the 100 yen mark. Here in Korea the dollar is already below the won, the yen would probably follow suite.

For anyone who have seen my tradesheet last post, I will try to post it everytime it gets updated. You can use this tradesheet as your own. It can be downloaded for zohosheets.com. Here is my updated tradesheet:

I'm Back Trading Again

Happy New Year to eveyone!

It's a new year and I have also resumed trading. I am trading Philippine stocks and the forex again.

First of all, I would like to clarify to everyone that I am only trading measly amounts of money on these two instruments or my whole trading account in fact. I am not risking my whole bahay kubo when I opened my accounts. Right now I traded 7,000 shares of MPI (Metro Pacific Investments Corp) at P4.45 and I am short on the USDJPY at a total of 6,000 units or $120 at 50x leverage.

My reason for trading the MPI was the earnings per share(EPS) figure was at P19 while the share price is at P4.5. Its like buying P4 for only P1. Its an extremely attractive bargain. If Warren Buffet was probably buying PSE stocks, he would have bought all available stocks of MPI. But I maybe mistaken, I may not know the reason why nobody is biting on the bait. Hmmm! Smells fishy. Anyways hope it turns out ok.

I started trading the USDJPY last week before New Year's Day. I keep reading news that US will still continue to cut its interest rate which is bearish for the dollar. I am a total of 6,000 units short. I chose to short the USDJPY because the charts are showing a good turn down and the Japanese are cutting down on their carry trades or so they say.

Hey! My son just woke up and I am the babysitter for today. Until my next post.

Got lots of comments since my last post. Thanks guys.

I am including my daily trading log/studies embedded on this post. This excel sheet shows my opinion of each pair then under the worksheets is a summary of each currency. I will try to update or post this excel file everytime. Here goes:

My Chart Setup

Here is a peek of what I have been doing lately. I am daytrading the AUDJPY on the 1min charts. MY chart setup is I have the 5EMA, 13EMA and the 62 EMA.

Guess how I enter my trades?