Wednesday 18th July

by 09:34 0 comments
First things first, here's an image from yesterday that I posted on the forum i'm a part of;

EUR/USD 15min

Basically, this points to the fact I was looking at long positions once we reached the green circled area on the right edge. This was into the 50% of the highest volume the day before. Good theory and it's always nice to have a trade plan or idea of what you'd like to see before it happens.

Next is a 1hr chart with some massive volume and what was clear strength from Tuesday;


So I was watching the 50% of the 15min and the 50% of that 1hr for a bounce and possible long position. You'd think that taking a short in this area wouldn't be the smartest thing to do. Correct. But guess what I did....

EUR/USD 15min

The marked bar above led me to think that the market had approached the 15min 50% from below on high volume and that weakness was coming in to the market. The bar does close below the middle and the next bar is down so there was definitely some weakness there, but it was only a fleeting thing. This was a bit of tunnel vision and not taking into account the larger picture as well as what I had been thinking for the majority of the day to that point. In all likelihood this was probably a form of absorption volume as it pushed back up through the 50%.

My entry on the 5min chart below;

EUR/USD 5min

I don't want to make too many excuses as i'll only be kidding myself, but it's worth noting I was taken into the position about 5mins before Ben started chin wagging again. This was a bit stupid on my part, had I remembered, I wouldn't have entered the position at all. 

I consider this trade as giving money away, but a further lesson and something to have drilled into me.



28. Forex. Trading. Music. Beer. Food. Travel.


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