Today was a negative day, I can't say it was badly traded, except for one thing: deciding when to stick to a profit target or when to scratch a trade. I scratched trades that went to their targets and stayed on trades that went to their stops. There were plenty of opportunities, here is a recap of what I observed and traded:
1) The first perfect set up happened as I entered the room. I didn't take this trade, but took a snapshot of it, notice the previously failed bearish engulfing, when the second one came about, the double-top was telling the buyers were getting out of steam.
2) I took this short set up, exited too soon, it reached the target
3) Took this 1-2-3 break-out, it went positive about 4 pips, but then reverted back to hit my stop. I was holding on to reach the daily's open, it ended up reaching that level, but I was already stopped out
3) Bearish engulfing on GBP/USD: I didn't take this set up, took the EUR instead, as it turns out the EUR didn't make it, the GBP made it to the target.
4) Bearish Engulfing on AUD/USD: We could have avoided this loss by observing the news release calendar. There was an announcement at 09:00 AM and we took a trade right before it.
is it my impression or there are no gaps in those charts? i mean, Open = Close(-1). Is so, engulfing patterns are more common...
ReplyDeleteThat's correct, some FOREX charting software simply ignore gaps. The gaps are there, but it depends on what charting package you use.
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