DAY 48 UPDATE (MAY 7TH 2019)
Today seems to be just as interesting as yesterday even shoots out a few trading opportunities finally
No of Trades so far: 12
No of Active Trades: 0
Profit Trades: 5
Losing Trades: 5
Break Even Trades: 2
Yeah , so nothing changed from the statistics above but it will pretty soon, we got three pending orders waiting to be triggered, hopefully going the right way haha .
Alright, let’s jump right into the mix:
Yesterday we talked about the gap down on this pair and how I would have loved to take that 2BR at the daily support, turns out it would have been profitable, at least all the way back to the broken support levels anyways. Do I then regret not taking the trade now in retrospect? Nope, I wasn’t sure about the trade so I passed, maybe when I have studied enough gaps like this and know how the dynamics work in such situations I’d be taking such trades in the future.
So why are we still talking about this pair now? Well:
Just what I was watching out for, price, after recovering back from the gap down has returned to the now new resistance and fired off a Bearish Engulfing Bar (BEEB), If you looked just three candles to the left there’s a valid Bearish Pin bar as well , but I passed on that as I now prefer really big pin bars or ones with the wick showing on the other side of the marked level on the chart. I have limit orders set on this pair already and they’re not triggered yet, we’ll see how it plays out, PT, SL and Entry are as seen on the chart.
Almost all AUD pairs fired off really strong candles earlier today, and we finally settled on two, AUDCHF is the first:
This candle not only recovered the gap down completely, but managed to close above the daily resistance level, you can see that subsequent candles have been small (showing price consolidation or minor retracements) and also staying clearly above the marked key level, in the process price has formed a Bullish Inside Bar (IB) Pattern right at the level, inside bars signal continuation or reversals depending on the price context behind it, in this case we are trading the pattern as a continuation. Entry and exit levels are as seen on the chart. It’ll be the first time trading this pattern so we’re watching to see how this play out as well.
Because we found so many AUD pairs showing Inside bar signals and settled on two of them, we have split the risk between the two (1% each) and as such regarding both trades as two halves of a single trade (sometimes one can do that to either minimize risk or just not to miss out on two correlated trading opportunities). Here’s the chart:
Strong bearish candle at resistance level zone followed by a small inside bar, we took it . Hopefully it works out this time. Entries and Exits are as seen on chart.
As I am typing, CADJPY Short just got triggered and looking good so far. I’ll be here tomorrow to tell the rest of the story.
See you tomorrow Journal