Can someone tell me why this trend reverted exactly on my position candle!?!

[FOREX.com]

Hiya,

Its 5min time-frame. EUR/USD. You can see the date and time of position in charts.Entry sell price: 1.11434 > TP: 1.11390 (but price go to 1.11918)

@campione, thanks for providing these additional details.

"What led you to enter your trade at this price level?" I see three fast bear candles and I believed that is going down, also I look at some indicators and the overall my strategy looks 60% is OK to place a sell position.

How did you arrive at this percentage calculation? While we can see the bearish candles you mentioned, we can also see you placed a sell order towards the bottom of a larger downward trending channel. It would have been possible for the price to rise to the top of the channel and for the bearish trend to still be intact.

But now do you see what happened to me. I feel deadly headache after this few thousand pound loss! I don't know how to draw my headache and pain by these...

Your strong response to this loss seems to suggest you may have been risking too much of your money on this trade. Even if you had a 60% chance of making money, that still leaves a 40% chance of losing. Were you risking more than 2% of your account on this trade? If not, you will find your mindset about losses will change dramatically, if you risk only 2% of your account per trade.

You mentioned you lost a few thousand pounds. To risk 4000 pounds on a trade and have it be only 2% of your equity, you would need 200,000 pounds in your account.

[Peter_Siddle]

Well, you need to use horizontal & trend line tools for identifying market in the level of support & resistant! There have so many threads in this forum on support/resistant, please try to read all of them! Use Search button of this forum. Best of luck!

[GerhardtW]

A bullish candle with long tale after a bearish trend is a bullish signal most of the times in such a short-term timeframe.

[NaguibSawiris]

Can you add more pictures about this setup? Please try to add a full picture of D1! I’ll try to help on reversal pattern of market! Thank you!

[Marijalondon]

Solid answer, exactly what i was thinking too.

[stackingpips]

By the way the answer you are looking for I doubt anyone of these members would really help you, the same reason why everyone's charging a fee for mentoring.. I know a lot of members see why it reversed on you but they're playing the idk game... good luck.

[ediplan]

Hiya,
let me give you my insight into what a saw happen with that position based on the system I set up for my own trading. ( I also trade intra-day)
- the daily trend (based on 20 sma) was bullish ( though momentum was bearish based on daily stochastic)
- the 4hrs trend (based on 20 sma) was being tested ( though momentum was bearish based on 4hrs stochastic)
- the major factor i saw was that daily momentum based on stochastic was turning upward at the point when the 4hrs trend was being tested.

I hope this is of any help to you

[campione]

Hiya,

Thnx. This is the full pics of D1 in 4 zoom level. Position is in the red circle. I placed the position before the candle shape up exactly.

Thnx

[brmicha]

I don't know much about what you're trading or the details. In terms of candlestick patterns, you seem to have an inverted hanging man candle, followed by a bullish engulfing pattern. Most traders trade with trend such that if they are trading short, they trade on corrections and they enter closer to the average price. After a big move has occurred, and you a experienced trader, you tend to think that the farther you get away from average price, the more likely that things are going to correct. You're trading after a pretty big move, so many traders might think of this as chasing price. In other words, when price moves big, a lot of traders are always trying to jump in. They are usually the ones caught in the trap at the end of moves. Someone is trying to get out of their profitable trades who got into this move much earlier, and now those trying to jump in after the move are providing the other side of their trade.

[campione]

Hiya,

@PanchoVilla84 I entered on 4rd candle as its bearish after three bear candle.
A3) Timeframe was 5M
A4) I haveissue with accurate s/r drawing matter and need help
A5) " if the s/r and swing low levels are major levels " what do you mean by major level?

---

A'1)is there reason for this formula?
A'4) sorr, may plz explain more?

Thnx

[campione]

Hiya @SystemX

It is a great technique. Thnx. Are the Nial Fuller and Steve Nison have books or its best to read their website? their website are paid service, but are their books available for download?

Thnx

[campione]

Every candle have it own price action.

Hiya,

could you explain above, more? do you have any book or reference to study for this? How can I understand this technique you are talking about?

Thnx

[campione]

Hiya,

Thnx for detailed answer!

"How did you arrive at this percentage calculation? " for each element in my strategy I give a percentage, Its approximate calculations of my strategy factors to enter a trade. But I was wrong, I need to improve and add something to prevent this condition in future, but bow? Maybe adding an indicator? or candlestick pattern check in different time-frame? what time-frame shall I check?

"Were you risking more than 2% of your account on this trade?" I think 2% rule can prevent me from becoming a millionaire.

I lost 4K+ GBP approximately.

What shall I do to prevent this?

Thnx

[campione]

hiya,

its so nice advise.

thnx

[campione]

hiya,

thnx for advise.

thnx

[campione]

hiya,

thnx for advise

thnx

[campione]

hiya,

" the daily trend (based on 20 sma) was bullish ( though momentum was bearish based on daily stochastic)" do you put SMA(20) and see its bullish in 1D time-frame? How do you read momentum in stoch as bearish? could you send me a picture here or in PM?

"daily trend" sorry, what exactly do you mean, 1D time-frame?

"the major factor i saw was that daily momentum based on stochastic was turning upward at the point when the 4hrs trend was being tested." do you mean when I'm placing a position in 5M time-frame, shall I look 4H for momentum and bullish/bearish as well?

Thnx

[campione]

hiya,

do you have any book about this?

"you seem to have an inverted hanging man candle, followed by a bullish engulfing pattern" correct! but its D1 time-frame, and I'm in 5M time-frame that I placed a position. Shall I look higher time-frames? which time-frame, when I'm doing trade in 5M?

" Most traders trade with trend such that if they are trading short" D1 is uptrent, sorry, why shall I trade short, why not long in D1? or what time-frame do you speaking about?

Do you mean when there is D1 uptrend, I shall not trade short in 5M time-frame? if not,what time-frame shall I look?

"trade on corrections and they enter closer to the average price" do you have a guide or reference or book to learn about this? its interesting.

"After a big move has occurred, and you a experienced trader, you tend to think that the farther you get away from average price, the more likely that things are going to correct" sorry, what is your criteria for average price?
"more likely that things are going to correct" do you mean trend get reversed?

"and now those trying to jump in after the move are providing the other side of their trade."
do you mean I shall wait for reversal sign then enter? but then I should be screen-slave for a month time to put a 50pip profit target trade. I like to take all possible positive opportunities that are 80% likely to lead to profit and increase my account size at the moment. I don't know what to do.

Thnx

[campione]

hiya,

I believe I answered everyone suggestions, if a concept remain unanswered, its my visual mistake, PM me to answer them immediately.

Thnx
Thnx for participating in my questions. you are all excellent and I wish you the best, success and happiness.

[ediplan]

sorry I meant D1 and not 1D.
I love to see the candles as they form without any indicator on my candles but I also understand by experience that candle formation alone is not sufficient information to make trading decisions. Candle formation pointing to current market trend and momentum direction will always make you a consistently profitable trader that everyone desires to be. With this in mind you must understand that news reports of currencies actions and their pricing are done based on the daily chart reading. The implication of this is that any serious trader trading below the daily time frame must have an eye on events happening on the daily chart. and when you trade on a much lower time frame like I do (15 min) you must consider the time frames that are in between the time frame you trade with (at least 2 of such time frames in my opinion) and the daily time frame.
How you do this while still having your bare candle sticks formation in front of you is a decision of what approach is more comfortable with you as a trader for this checks. As for me I have customized them digitally so that i can see them at a glance on my 15 mins time frame per pair that I trade (this is because I monitor 15 currency pairs for trade setups) while still having my candle formation to consider.
I hope this is of any help.