Thanks for your input. Sometimes we are so blinded by our own biases that we miss some obvious signs.Actually i would have avoided the trade based on several reasons.
1) there was a long pullback bar just as it was about to test 1.25 (2 bars before your entry), which tells me there are strong resistance around that pt
2) pullback after it sneaked past 1.25 was followed by a series of bearish bars which to me looks like there is little upside support.
3) would have avoided trading at the significant level of 1.25 which has been tested and failed several times over the day. Would have bought in only if it had cleared the 1.25 level comfortably.
In general i avoid trading around +/- significant levels like 1.24, 1.25, 1.26 as you can easily get caught up on the wrong side.
Which sessions do you typically trade?hmm, can't find any trade today since i was busy with stuff and any little time i had the chart was swinging up and down with no good setup. hopefully will be able to do more tomorrow. Cheers.
I sent an email to Bob Volman (his email address is on page 323) regarding this trade because I was unsure if this was premature or not. This trade is similar to examples 11.6 and 11.9 in the book.RB at E2. Since the trend was bullish, this was a counter trend trade.
The range is resting on former resistance of the bull flag (dotted box). The upper barrier was formed by (1) and (3), where we see two false breaks of the 00 level. The bottom barrier was formed by (2), (T1) and (T2). Up until (3), we don't have a clear idea of where prices are likely to go. After (3), prices drop down below the 20EMA, where sideline bulls enter and take out an earlier high that tested the 20EMA (4). Prices drop again but the bulls buy at the same level, with the bears shorting at a lower level (5). Things are looking up for the bears but they go and get served a tease break (T2). There is some resistance below the break but it is not in the way of my 10.8 pip target (very close though). I take the break when prices break the bottom barrier again but prices are unable to follow through on the break so I move my tipping point to the bottom barrier and end up exiting.
I think I am done for the day. I missed two good trades and took two losing ones for a 9 pip loss.
Wow, your trading day is quite long. I usually start with the NY session and stop around the second half of the NY session because I find it to be quite...treacherous. Wish I could trade the first half of the London session as well but that would throw off my already weird sleeping schedule (for my time zone GMT-7).i trade GMT+8 from 9am to around 10 or 11pm sometimes.
your trade seems reasonable enough for me, though i would waited for a few dojis at support level. Noticed your SL has always been low (eg. under 5 pips)? Can I ask what is your SL levels because you may actual hit your TP if you didn't get stopped out. Well, that's just a guess since i can't find your trade on my chart. Hahah
while your trade was unfortunate, i would have taken another trade at point 2 because of the double top and also the second top was not even testing the previous high, the resistance seems strong and was poised for downwards movement. it's not the best of setup to enter but something i think is worth risking a trade.ARB: Missed an ARB here because I was pretty distracted with watching Bloomberg TV (bad!). After that false break of the 80 level from E1, the bulls pushed prices back up the 1.2400 level and faced steep resistance from the bears (1). The bears managed to print a lower high (2) and proceeded to clobber the bulls all the way back down the 80 level (3). A round won by the bears. The bulls haven't given up yet and again buy at support but are only able to print more lower highs (4 and 5). The bottom barrier of the range is a bit ambiguous so that explains the hesitation after the break. We can draw a signal line of the tiny block of bars and trade the break of it.