Thursday 12th April

by Liam 16:19 0 comments

Took one entry today, a sell on EU. I made a small profit but didn't hit any targets on the trade. Despite not hitting any targets i'm happy with how I managed it and I actually closed out at the perfect time. Before entering the trade I knew it was counter trend so i'm happy with how it turned out.

Firstly, a look at the 15min chart for today.

EUR/USD 15min

A - Down bar with high volume for the time, the next bar isn't up but it does close near it's high and the bar after this is up, good buying found on bar A. First sign of strength.

B - Wider spread, same low as the bar just after A, same close as A and higher volume, next bar is up, definite buying.

C - For the majority of the 15mins this was NS or a test. In the last 20 seconds of the bar it pushed down and closed right on the low. This put me off taking a long position as I wanted it to close in the middle or on the high. The bar after C is also a test, into the close (something i've not talked about for a while) of B.

2BR - A possible entry long as it bounces from the top of bar B. An entry I should've been aware to. Number 3 this week.

D - Further increase in volume as we met some selling at a previous top. This could have been pushing through the high but the next bars were down This formed the basis for my short position which i'll show on the following 5min chart.

On to the 5min chart;

EUR/USD 5min

Bar D on the 15min chart above formed the basis for me thinking there was a bit of weakness coming in. The following bars were down and we had pushed below the 50%. We printed a nice narrow spread ND on the 5min chart so I set my order to short. Fully aware this was a little against the trend. Got whipped a bit on news but generally handled the trade quite well. Once we approached the green rectangle area (high of B from the 15min chart) I was watching for any signs that this would provide a bounce. Signs were that it was so I decided to close for a small profit. (0.46%) 

Once I had closed my short trade my thinking should've turned to longs. If it was enough to make me close my shorts then should I have been going long? Perhaps, but there was no real clear test that i'd enter on. The collective PA action, dipping to the lows and closing on the highs across 4 separate bars made me think it wasn't going to break through. I'm glad I was right.