This is the level (7805) I was watching on Sunday before the market open and I was initially looking to see the level fail and get short. If the level is to hold then the overall trend could be resuming and so will be flexible and trading small until I am more sure of trend direction.
On Monday the level was hit and the price bounced returning to the level on Tuesday AM and breaking the low. As price returned back above the level I decided to short at short term resistance. The level failed and I was stopped at a small loss. I then shorted as price rejected the next area of short term resistance but was again stopped out for another small loss.
Price then bounced of the “level” two more times and so I thought the initial dip below the level on Tuesday could be stops being taken and then price would resume overall trend so I decoded to look for a long.
This morning I marked up 7838 and decided if price returned here it would be a good area to bounce and get long.
As price hit 7850 twice and moved higher I decided to chase price as I thought we would be looking at a breakout above 7868.
This was a mistake as I was chasing price!!
When I took the stop here, I then resumed my bearish interest and so went short… again a mistake as I lost sight of the earlier level I was watching at 7838
Having watched price hit 7865 I decided to close this trade manually and re-looked at the chart and saw that the 7838 level had been hit. I should have been long as per my plan… I have now gone long again with a 25 pip stop.
Now, I am OK with the first two losses as these were based on my pre-planned analysis. Trades 3 & 4 showed me chasing price and could have been avoided.
Trade 5, again I am OK with this as I using pre-analysis to get in having seen price bounce of 7838.
This trade may not work out but again it is being traded with a plan and so I will hold.
7905, 7915 & 7920 will be overhead resistance and will be key to longer term trend being resumed or continuation down.
I would post a chart but new users can’t. Having just noticed this at the end of the text, I will explain the levels. 7805 is the Aug 15 low and was tested again on Friday 29th Sep. Having seen price bounce off again 7838 was now the previous day’s high and so good support.
I’ll post charts once allowed to better clarify current and future positions.
Starting Balance - £10,000
Current Balance - £9959.32