why shouldnt I close this position?

hamidddds

Newbie
Hello. I am new here. I dont know wether I can ask question here or not.
I had a short position and after a bad follow candle I decided to close the position. However, the trend continue. I wonder was there any sign that show me I shouldnt close this position?(I closed the position right after the candle which is pointed by arrow)
 

Attachments

  • BTCUSD_2022-12-28_02-04-21.png
    BTCUSD_2022-12-28_02-04-21.png
    193.9 KB · Views: 32

Riddler

Junior member
Hello I would say the following based on the following assumptions;
1. You had a stop loss in place when you opened the position
2. You opened the position following the channel breakdown

Your stop wasn't hit, your MA was still curling over to the downside and price was still below it and the "bad" candle you refer to did not take out the recent previous highs.

Seems as if you got spooked out of the trade and fear caused you to cut and run but as you can see you were right in the first place and could have added to the position after that "bad" candle. Have you read Trading in the Zone? If not I recommend it, the late author talks about accepting risk, once I put a trade on and define the sl and tp levels I don't interfere (except to trail the stop if things start working out). In other words, I'm prepared to have my stop hit if I'm wrong, I don't care to save a bit by closing earlier than pre-planned, just let it run and what will be will be.
 

johnander

Newbie
If you have closed your position according to your strategy, nothing to complain about, on the other hand, if you have skipped it, I see an error there.
 
 
Top
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock    No Thanks