I guess I am not going for the early breakout, I am looking at the five candles before 8am London time, I entered my trade right at the open.
I’m not up to the level of techical analysis as you and Muthu are. I like to enter the trade and then watch the PA on the five minute chart.
SL - I would use the wick but it depends entirely on your target. If you are only going for a 30pip target then I can fully understand why your SL is at 30pips.
I was just setting my stop and target at 30 pips but I am now looking for SR levels. For example I am short EU right now and I see support at 4440, my target is 4450. I certainly need more practice however.
Are you changing your stop to breakeven at some point?
It’s a bit of a slow day TBH.
I would normally move my stop to b/e at around +20pips.
Just be careful with shorts on EU at present.
Possible support areas on EU: recent spike at 0200 1.4453, support line 4460, ssupport below that at 4440ish - all on 1hr chart.
I believe you traded short at the break of the trend line. Had you drawn your fibs or if you had an eye on the days low so far which happened to be 1.6060 (0200 GMT candle which made the days low when you drew your trend line), you could have set your profit target in that area for a quick 20 to 25 pips i believe. If you stick your fibs (See my latest chart) you can see Price action just bounced off the 6060 support area. Now if you had a profit target set there, it would have been a great trade. Well just a learning process for all of us here. Lets try to make the most of it by learning from our mistakes and lets move on to our next trade. Just my thoughts !
Regards,
Muthu.
Edit: Take the spread as well into consideration while setting up your targets in areas of support/resistance/fib levels as while shorting, trade closes at buy price, which means if you had set your target exactly at the day’s low for this trade, you could have still ended up losing as the buy price was still 4 pips away when the trade bounced north !
After a Long time and since i am going to work a bit late today, I managed to trade the London breakout. Price action was struggling for a while at pivot point also showed some weakness to break my fib level, hence decided to exit there and get ready for work.
Today’s Entry/Exits were based only on break of the day’s high with target as the nearest Resistance line. I couldn’t draw any trendlines on the upside. Nothing to do with the strategy as such. However, as PA was hovering around the day’s high for a while a breakout looked imminent to me. Decided to trade and made a quick exit at R1.
Edit : The candle which triggered short trade, first went thru to the upper trend line and although it showed a brief break of it, the long trade was not trigerred as i placed my pending order 2 pips plus spread above the day’s high. Price bounced off the day’s high only to break lower trend line, triggering a short trade . Price stalled at pivot for a while before finally exiting at the fib level marked “Exit”.
Edit : Just realized my entry on the chart was the Gravestone candle (Doji) that broke the trend line (Previous candle from the one marked as entry). I made a mistake in setting up my exits properly. Hence the trade which was supposed to have been a quick profit off that doji candle, was in an unnecessary drawdown before retracing and hitting the days high for an exit with profit. Looks like as i post this message, price is still testing the day’s high.
Muthusai,
May i humbly suggest that you try to send your first post immediately you draw your trendlines. That way, people like me who keep getting it wrong can compare notes.
For 2day, i got the EURUSD right but made a blunder on the GBPUSD.Lost alot more than i got on the EURUSD.
You aren’t asking for too much no worries. It is just that sometimes i trade completely different from text book. Example is today’s cable trade that connected no candles from yesterday’s. Since trendline drawing is an art that i am still trying to perfect i do not want to influence you by showing what i did before the trade. May be on that day what you did was right ! Remember I post all trades both win or loss. The objective here will be to learn even from our own mistakes. I take two screen shots, one just after i am done with the trend line and second as soon as the trade is over (profit or loss) so you know i actually traded and not simply drawing trendlines off a chart filled with candles that is already past time !
So i request you to keep trying on your own to draw trendlines and you will always get to see my charts to compare. Also feel free to post your charts as well so we all learn together and perfect trendline trading. Hope i make sense.
you have a candle marked ‘entry’ the candle before that rose above the trend line, why did’nt you enter on that one? Even the one before that got above the trend line just a little bit, why not enter on that one?
I request you to read the “Edit” comment just below the chart for the answer. And for your second question as you have pointed out price rose just a lil bit and not a great deal and it was an area which was already wicking out and price closing below for the past two hours before that candle (check the two hour candles before that). Price was struggling to break that area. In such situations i dont want to jump in as soon as i see price just popout of the trendline. Correct me if i my reasoning is wrong.
