Entered long at 1.2949 on impulse when I saw the price pulled back sharply. My initial plan was to go long at around 1.2930 (near to today's pivot level) for target of 1.3000. I might regret for not controlling this impulse.
The price did not hold above today's pivot level, closed the position at 1.2908 for the loss of 42 pips.
Advice to myself: If I had waited for 1.2930 for entry, my loss would have be lesser by 20 pips.
However, seeing this break of pivot level, I have reversed my position at 1.2908 for target of 1.2880 which is today's support S1. I will close half the position and wait for further move...
By looking at the price at that level, I might try to go long, since this price movement looks to be, solely, on profit booking...
If 1.2880 breaks, I will add to my short position....
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Looking at price action on 30 mins... we may no longer go down. If the price does not fall in couple of hours of NA session open, I will think of closing this position
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The price did not drop to 1.2880 in the time period that I had in mind. If the price drops from here, it should follow through to 1.2850. Hence cancelling the move to close half the position at 1.2880. Now, the target is 1.2850
Interesting chart at http://chart.ly/4ngp8aq
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Not able decide what market is going to do....
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This gets interesting...
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I shorted again here at 1.2924 to close out earlier short.... It might bomb on me... time will tell.
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Closed both the shorts since it broke out of its range....
Profit/Loss: -45 pips
Total Loss : -87 pips
Not going to take any more trades since I am winding up for the week today being Friday
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Retrospection:
1. I could have noticed that previous trendline was broken.
2. When a break out occurs, often the price retraces back to breakout point before continuing further.
The price did not hold above today's pivot level, closed the position at 1.2908 for the loss of 42 pips.
Advice to myself: If I had waited for 1.2930 for entry, my loss would have be lesser by 20 pips.
However, seeing this break of pivot level, I have reversed my position at 1.2908 for target of 1.2880 which is today's support S1. I will close half the position and wait for further move...
By looking at the price at that level, I might try to go long, since this price movement looks to be, solely, on profit booking...
If 1.2880 breaks, I will add to my short position....
=========>
Looking at price action on 30 mins... we may no longer go down. If the price does not fall in couple of hours of NA session open, I will think of closing this position
============>
The price did not drop to 1.2880 in the time period that I had in mind. If the price drops from here, it should follow through to 1.2850. Hence cancelling the move to close half the position at 1.2880. Now, the target is 1.2850
Interesting chart at http://chart.ly/4ngp8aq
====================>
Not able decide what market is going to do....
========================>
This gets interesting...
=====================>
I shorted again here at 1.2924 to close out earlier short.... It might bomb on me... time will tell.
Closed both the shorts since it broke out of its range....
Profit/Loss: -45 pips
Total Loss : -87 pips
Not going to take any more trades since I am winding up for the week today being Friday
============================================================
Retrospection:
1. I could have noticed that previous trendline was broken.
2. When a break out occurs, often the price retraces back to breakout point before continuing further.
This comment has been removed by the author.
ReplyDeleteHi mate,
ReplyDeleteThere were two signs of entering a short trade. First, rejection of 1.30. Second, 1.2950 was the support for the whole Asia trading. So if this level gets broken, i'd go short for taking profit at S1.
Your first trade, IMO, was OK long, but too early since you didn't follow your plan. What followed was you tried to chase the price. But you didn't have a plan for short scenario.
And finally, often a breakout level gets tested, which happen later when price rebounded to 1.295. Another short opportunity. (I had a sell order there, missed it by a pip).
In general, if I had two losing trades in a row, I'd stop trading right away.
Take care,
Peter (Banison)
You asked for opinions on the boards, so here is mine. But first, entries are important but the most important thing are the exits. Control the losses first and foremost.
ReplyDeleteYour first long entry was actually based well, it's the exit that was bad. I marked-up your first chart with some lines and notes indicating that ~10pips was the risk http://www.tafool.com/Charts/critique.png
On the decline, where you first went long, RSI was breaking below the 40 line and price is breaking the lower support, indicating some sort of decline in the works.
As you moved into this chart, http://2.bp.blogspot.com/-VN2gAtg4RP8/Txl23lvLalI/AAAAAAAAAIE/_A0RR7R9qHE/s1600/eurusd.PNG , look at the RSI again. It's indicating a rise in the works.
Please note that divergence is not a panacea and can burn badly but, it is of great use. Of great importance is where the RSI is ranging. Note that in an uptrend it tends to range in the 40-80 zone while 30-60 is bear zone (these can/will be different on different instruments so study the past history).
TAfool