Blackbox edge in play! These should be the trades to take. Probabilities on your favor, less inherent risk and a sweet +2R locking in profit as soon as price broke certain key levels. I was expecting price to test the Daily Bear Channel so I put my take profit there (+4R), but even as I write this (40 mins after the trade closed), the market is playing around the 12218.6 level. Note that on the last 3 hours no hourly candle was able to close below that level! Are we looking at a bottom? See the H1 chart below:
After such an aggresive start of the session, I looked for possible levels where price might reach a temporary (or permanent for the day) ceiling, and watching closely what the market was doing I risked trading the 2 shown RESCON trades.
Not too much to say about the first one, it is risky and unpredictable but often comes with multiple Rs if you choose the right entry level. Price moved incredibly fast up and I saw a possible stop at the 5M Moving Average that didn’t hold up and lasted seconds only.
When price reached the Hourly Bull Channel, I saw a last chance to find a retracement level. I entered the trade with a considerably high stop loss and waited for it to go down. It could have been a 4 or 5R trade but considering the nature of the trade I am more than happy getting away with +2.62R.
What a roller coaster today’s session is!
After an aggressive bearish move initiated minutes before the London open, price retracted to the M1 Moving Average for what I thought was going to be a great start of the day. Well, it didn’t last long. When price reached my 1R level I decided to move my stop loss to breakeven level in order to reduce my risk and seconds after that I was taken off the trade for a -0.15R.
Hey Alex,
Just seen your blog!!
You’ve used the Grid well, well done!
I’ve not traded so far today, have talked myself out of a few setups.