Upper wick is absent in the bear candle. However, the strong bear candle that completely engulfed the bull candle was convincing enough. However, the bbs were not that much in favor. This trade failed to click.
Main Chart - After Exit
So what was wrong in this trade ? GJ was bullish for a long time as you can see on the main chart and the bollinger bands were not absolutely flat enough when we entered. It fooled us to believe it was about to flatten out before continuing its journey north. Moreover, the candles hardly reached mid bb anywhere on this chart and we were trying to fish pips against a very strong uptrend. Lessons learnt.
Regards,
Muthu.
Chennai.
India.
Main Chart
The Evening star is RED, a deviation from the usual green star that is expected in text book patterns. However, the bollinger bands are beautifully poised and curving down. A trade not to be missed even though it is a grey area trade.
Even though I bend Tymen’s rules when it comes to BB I would have not taken this trade. All of the BBs show a strong uptrend in a channel, and none of them were even starting to turn when the pattern formed.
Welcome back BlackSwan,
Yes we were in a very strong uptrend and it was a risky trade even before we started.
Regards,
Muthu.
I did that same thing in a USD/CAD today, lost 22 pips taking a trade that looked similar to your failed trade. That’s why I can tell you why it didn’t work…
I see you posting in the London Breakout thread also. Are you using both strategies?
Yes I use both strategies but i don’t mix them !
5m Entry/Exit
Main Chart - After Exit
Regards,
Muthu.
Chennai.
India.
Also, what image format allows you to post the image directly into the post, instead of a thumbnail?
Hi,
Welcome to this thread. You are right about the exits, i could have exited near the wick of the candle you mentioned. Also there was an exit off the long bear candle few candles after this. However, i was also looking at the main chart and since the trend looked good enough to reach mid bb, i decided to wait. Hence you see a retrace there before the trade finally reached the midd bb which also was near the bottom bb (5m chart) and i exited there. So, there were few exit points which one could use according to their will and plan. I am using photobucket to post large charts. It is a free service and Tymen also created a thread on how to use it to post charts. He also mentioned about it in JoCT part 2 thread on how to post. It is very simple and easy. Just go to their website and have a look. Hope this helps.
Regards,
Muthu.
Chennai.
India.
Main Chart - After Exit
Regards,
Muthu.
Chennai.
India.
