GBP/USD PnF Long

by Liam 13:12 0 comments

As the title suggests I took a PnF based long on GBP/USD. This was just stopped out for a 30 pip loss.

Despite the loss i've actually learned quite a few things that I can apply to future trades.

GBP/USD 1hr PnF

We bottomed with NFP last Friday and I thought there was enough volume at the lows to serve for a push up, if only a corrective push before continuing down.

The green highlighted zone put a stop to that. This zone represents one of the highest volume spikes in December. I was aware of it and considered that scenario before taking the trade but I figured I'd see what would happen once we got there. It drifted down over night before making an attempt above 1.6100 again this morning. That was my last chance to get out of the trade before it reversed hard.

Another thing for me to consider about this entry was the stop placement. With the next sell signal quite far away at 1.6020 I made the decision to place my stop at the reversal amount of 3 boxes / 30 pips. This is a fair enough placement in my opinion but it is a little arbitrary as it could hit the rising 45° trendline at 6050 and then continue northwards. 

Ifs, buts and maybes again. These are just things to consider for future entries. Whether the trade is worth the risk. In this case I don't think it really was. But that's ok. 

I'm delighted with how the PnF side of things is going. I'm still honing but i'm so much more relaxed when it comes to trading these charts. Despite what I was saying above it seems to have more of an element of black and white as opposed to grey areas. Either way, i'm over this trade already and looking forward to the next one. I've never really been able to say that before now.

It's incredibly refreshing!

Cheers,

Liam