Charts - Monday 16th March

by Liam 17:16 0 comments EURUSD

Made a bit of a mess of it today. Two trades, both of which were losses, totalling -1.70% for the day. This is the worst day i've had since the 26th January. Anyway, i'm not going to get bogged down in those details.

On to the trades and charts.

EURUSD

1. Highest volume from Friday.

2. Highest volume this morning and the starting point for both trades.

The first position I took was a buy. Zone 2 had printed this morning but there hadn't been a great deal of follow through therefore the weakness hadn't really been proven in my eyes. Price was being supported by the 50% of zone 1. Price was above this 50% and it's in my strategy to only take shorts below a 50% (remember this point). So I took the next long signal that arose as I felt it was strong. The first green signal on the P&F chart was a nice area to get in long. It was in the lower half of an up channel (green channel) and it was above the MA.

Price pushed up a small bit before faltering and pushing down. During this grind downwards it kept forming lower highs so I thought a new trend was being formed and that zone 2 was actually weak. I decided to close the long position early and switch to a short at the second green signal. By doing this, I broke a rule in my strategy of not longing above the 50%. I give the zones a weighting of sorts. Seeing as the zone from Friday had more volume, this one is more important so I shouldn't trade into the 50%, only once we've broken it. If zone 2 had more volume I give this more weight and ignore the 50% of the Friday zone, hope that makes sense! Either way, I shouldn't have shorted until we were at least below the 50%.

Again, this pushed down slightly before reversing right at the 50% of zone 1 that I mentioned previously and pushing up and well away. Straight through my stop (stop 2) and up to where my initial target had been.

Interesting as well that it wouldn't have hit my stop (stop 1) on the first trade. Granted, I would've gotten away with it by the skin of my teeth but AGAIN I think this proves to me that I just need to stick with my trades. Essentially, stop second guessing myself and for that matter - the market. I was right with my initial analysis of it going long and that's what it eventually did. I could deal with it if my stop placement wasn't right, but this way, I find it frustrating.

Anywho, plenty of days left in the week and I've no intention of ending my week by week winning run by letting a crappy Monday get to me.

Cheers,

Liam