Hello! My name is Gabriel. I have been interested in forex trading for years now. Been on and off over 5 years. Have had practice accounts and real accounts. I have never really stuck with it, always got discouraged. I have never searched a mentor or asked questions to other traders. I am starting back up and going over the Baby Pips school for the 4th time. Its starting to make sense now, Sort of. That’s why I am here hoping to get some feedback from those who don’t mind. So here it is. I have a practice account. I have made this trade on the practice account and wondering if I was correct. Also if you have any comments on what I should of done or not done. This was on the USD/CAD 1 hour chart. I believe I found a descending triangle. Not considering risk management since its a practice acct. This was my trade.
limit - buy 1.31380
stop - 1.31085
take profit - 1.31682
sold 1.31511
I sold at 1.31511 where the second arrow is shown. I didn’t want to lose the pips I have gained. I got spooked.
I made the trade based on the descending triangle and the price was to shoot up to the height of the formation. Any help will be great. Thanks!
Find a strategy that gives you an edge, then stick to it. Getting spooked will lose money over time. You risked about 30 pips gain about 30 pips. If your strategy wins half the time and loses half the tim, you will break even but if you exiting after a few pips and because you are being spooked, then you will lose more money than you win on the above basis. I suggest taking 20 trades with the same strategy and calculate your win loss ratio, then go from there. If you exit because your strategy gave you an early exit, that is fine. Just stick to one strategy without compromise and objectively for 20 trades, then take it from there. Maybe you have a high win to loss ratio which allows you to exit for less than your stop loss in pips or maybe the opposite is true.
This is what i observed,
- Monday and Tuesday LOW serve as an immediate Support level.
- Entry was close to a Major psychological level 1.31000, which is another indication of Major support level.
- You bought on the break out of the descending triangle, during the Opening hour of European session.
- Trade was closed at the end of London seesion.
A risky trade i would say. Personally, i wouldn’t have taken this trade reason mainly because MACD was making lower bearish histogram bars. There wasn’t even any divergence between price and oscillator. The only merit here was that the entry was close to a Major support level which help to increase your odds of a bounce, as well as minimizing your risk vs reward.
Retrospectively, price actually continued southward.
I presume the word “limit” is a typo, it should be a buy stop order. How can it be a buy limit order when you bought upon the break of a descending triangle? It is impossible to predict before hand if there will be a formation of a descending triangle.
Thanks for the reply. Makes sense. Thanks!
Thanks for reply!
So what I understand is that I should always trade with the trend. So if the market is trending up, then retraces down and forms a descending triangle then that would be a good buy if price breaks out of the triangle? The trade I made would of been ok if histogram was on uptrend??
That would be more sensible. Unless you are scalping using a 1min chart, aiming for a quick in and out trade, and betting on a mean reversion from a bounce off a major psychological level. Then you wouldn’t be wrong as well. It depends on the context of how you strategize your trade execution.
I am one who is never content with my current state of skill level in trading. Continuous research for the holy grail seems to be in my blood. Just when i thought that i have discover the holy grail. Another holy grail is just around the corner. The painful vicious cycle of dissecting the grail start all over again.
