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Diary of a Currency Trader: A simple strategy for foreign exchange trading and how it is used in practice by Samuel J. Rae

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Chapter Two: The Way I Trade

In this chapter I explain how I trade using the tools and components of my trading plan, and how I put this into practice in my trading strategy.

My trading plan

There are four components to my trading plan, which I will describe in turn here:

  1. Charts
  2. Candlesticks
  3. Historic price levels
  4. Timing

1. Charts

When explaining how I trade, the natural starting point is my use of charts. As I have mentioned, charts are a graphical representation of historical price data. This graphical representation makes it much easier to locate points at which there has previously been price contention and it can also offer an indication of the direction in which a market is heading and the strength associated with future ...

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