Big Doji (Blunder)

The UJ trade was a disaster. I had for a few moments profitable position before I noticed a doji appearing at the bottom near to a support line. I knew very well that I was in the wrong position. It reversed after the doji leaving me with BIG loss. Literally, doji means "blunder" or "trouble" in Japanese.

In retrospect, UJ was generally on an up trend based on daily time frame. To trade counter to the trend was inviting trouble.

I also found out the chart used by Haji Nordin is called Heikin Ashi kuskus. It means " average bar" in Japanese. It is supposedly a strong indicator for traders. I believe, like any other indicator, you have to factor in several other parameters before jumping in. The candle stick chart itself is a powerful indicator. When combined with others, particularly, the trend, it would make a more formidable trade entry.

I will still look at the Heikin Ashi chart. I would use the SMA 5 & 20 in my trade. In addition, I would use the daily trend to shape my entry. If the day chart is going up, I would open the 30M chart and enter only when SMA5 crosses SMA20 upward. Heikin Ashi will be just another indicator that I will employ from now.

I appreciate all the help rendered by Haji Nordin. I guess each person must trade based on his/her own system because the psychological difference and risk appetite between people is too vast to assume that what works for one will work for another.

I have to keep searching and improving......