Hey @jairusmaloba, how’s the weekend going for ya?
You’re correct I did buy on that little poke above the minor resistance (upper red line) just like you said. I was a little worried about the resistance even before entry and eventually entered on the thought that that little close above the minor resistance was enough of a break above, I was wrong :(… if you looked at the daily chart of this pair this is what you’ll find:
Trading into this kind of traffic is what I’ll be trying to avoid in the future.
The only good news about this trade is that I managed to stalk it just enough to around breakeven and got out with no loss… lesson learnt and I luckily managed to get out by whiskers.
Minor resistances aren’t necessarily fully avoidable always especially when trading on high time frames, but too much of it makes trades in their direction more often than not result in either choppy movements on trades, sometimes even leading to losses. I learnt this from Jonathan’s Price Action Thread here on BP. So the cleaner the area to which my trades are heading into, the better for my trades.
Key levels from which I look for PA to take my trades are determined from level marked of off clear swing highs and lows on the daily charts. Here’s a pretty good example on GBP/JPY
Appreciate that you took the time out to understand why I do what I do… 