Tuesday 6th November

by Liam 10:30 0 comments

Finally took a trade yesterday, a short entry on EU. I decided to write this now so I could come back with new eyes and look at the chart today. Hopefully this doesn't qualify as "looking for a reason the trade failed".

Yes, I was stopped out.

But!

I stuck to the plan and i'm happier for doing this. With this in mind I think the plan may need a little tweak to keep me out of such a trade. That set up in the area we're in now (10:22am my time) would be on to a winner. But yesterday, I was shorting at the low and into a previous high volume area right below. Not intelligent.

 EUR/USD 15min

Firstly we have the 15min chart with three zones, one from Monday and two from yesterday. Looking at it now I think I was looking in the wrong place for shorts completely, right into the body of A. The high volume at B was my starting point, high volume up bar with the next couple of bars down. I then flicked to the 5min chart for my short entry. (on the 5min chart below).

The volume and close at C should have been a warning to me to watch out. But I didn't heed the warning. My target was missed by 4 or 5 pips and then I was taken out with the widespread up at D on higher volume again. By this stage I had realised this wouldn't be a good starting point for another short entry!

EUR/USD 5min