Did i do something wrong here? I entered short on the red candle…
the move entered was a bit late, I would have entered on the first break and retest for a nice ~25 pips or so. Once I saw that bullish engulfing form, I would have exited
aaaah i see. i saw on the way down it broke the 1.29 level then retested so thought i’s see a move down. i might just hold, i have a stop on place so…
I can only for sure know that a trend wasn’t happening. Therefore any trade on GBP/USD over the last 6 weeks has been a coin toss.
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Yea, It’s been in a big range for a while. Trades still can be made, but really for just quick, short-term moves.
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u entered right on the 50 fib, an area where buyers might come in, and as just so happens, i bought pound usd a bit just above where u entered. that big red candle closed way of the lows, showing there was some buying at that level, and the next candle was green. technically u sold at support
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damnnn, I realised
In a range like this; don’t open any trade in the middle; try to use support/resistant levels!
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Thank you so much for this. Last night I was literally thinking the same!! This month I made a few mistakes however, I’ve noted down each mistake and I’ve learnt my lessons!
Thank you for the support guys.
it s not ur fault, from what i ve seen this is what people are being taught, sell or buy on big < momentum > candles. that s total BS, as those big candles as ussually marking the end of a trend or a move, specially when the price moves fast. sellers are attracted to sell on higher prices and buyers on lower prices. i know that buy low sell high sounds a bit of a cliche but…it s exactly so, buyers will almost always come in when prices move down, i use volume to be able to see if and how strong the buyers are in a down move
I have done this many times, open a buy or sell position on the daily TF because I’m looking ahead long term. Then after it goes against me, realizing as I zoom into the 1H that I’ve opened that position right on a S/R level. It’s obvious when I see it AFTER but by that time it’s too late. Most of the time price comes back, but not before sitting on the trade a few days. If it doesn’t then hopefully you’ve got your exit plan set up.
This is how you learn, sometimes the hard way can be the best way. School of hard knocks.
It will take time but eventually you’ll develop your own strategy which will allow you to trade on your terms only, so that you’re not tricked into spontaneous buying.
if ur trading the daily chart, that s a hole different ball game. cos if u have the direction right on the daily on weekly, then ur stop should be accordingly, and u wouldn t care about the 1hr swings. tho i have to say this much that i ve noticed since i started trading> when the direction of a trend changes, or the momentum shifts, u ll notice that on the lower timeframes first and later on on daily, weekly etc. anyhow, it all depends on what ur comfortable with and the patience that u have, i could never be a swing trader as i don t have that much patience. there are ways to see when ur trade losses momentum and u can expect a retracement or a reversal, therefore get out of the trade or add another position etc
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Agreed. I’ve included the 1H chart in my strategy for entry purposes. It’s always better when a trade goes your way in an hour as opposed to 2 days.
just saying that if the smart money decides to buy gold that s in a downtrend, u ll be able to see that on the 1hr chart. volume(activity) increases substantialy and price isn t able to make new lows. on a daily chart u ll see it a bit late in my opinion, this is just an example.
that book of wyckoff that i ve attached won t harm ur trading, it will only enhance it, i d reccomend it to every1 that wants to sustain long term.
this was what i was talking about, downtrend, price moves down on that big candle, and as it surpasses previous s days low, it s getting bought up. i bet many traders sold that seeing the price moving down so fast, only to get trapped minutes after. volume increased dramatically but price wasn t able to make a new low, and as a result of all that effort next candle is green.
You are always welcome buddy; have a great weekend!
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There was a Breakout, there was a Pullback, but the Continuation never happened. This is why conservative trading is key, at least for me.
In this situation you should have entered once price made a lower low from the original breakout.
Not that this is a full proof method, but at least it will increase your winners over time.
Definitely!