Remember my second trade that didn’t work? This should have been the setup for that trade. Price went down, found a bottom that acted as support, and without news or anything going on started to climb up its way towards the 11545.9 level.
Despite the +2.93R profit that leaves me on breakeven for the day, I am not particularly proud with my trading today. It could have been much worse and does not show the way to go!
Have a good weekend.
I was already hit by my lack of patiente, but this M5 MAB looked really good. Had it marked in advance, and I think myself, themabtrader and urely others fell as well. Nothing to say more than I should have considered that price was coming after the 11545.9 level.
However, that doesn’t justify the second trade. I was upset by things not working out and took a desperated trade just hoping that the very aggressive movement up would find resistance there once again.
When market goes sideways I need to learn to either be more patient than ever OR to trade accordingly!
Price was clearly trying to break the 11545.9 level, but after having re-tested the low of the day couldn’t do so. It tried once, twice, three times and went up for a fourth time. Me, instead of waiting for confirmation (literally, break that level and go higher up), bought when it was a screaming sell. Why a sell? If price attempts to break a level several times without success, more often than not it will go further in the opposite direction looking for a support level that gives price enough strength to get rid of such resistance.
I fell in the trap even being aware of the risk. That didn’t make me feel any happier after being stopped out, and instead of learning and put a sell trade at the 5M moving average, I observed how price went down to make a new low for the session. Frustrated, entered a veeery low value trade that fortunately closed manually as soon as I realised where the trade came from.
After price reached a new lower low in the context of the chart, I saw a nice opporunity for a Role Reversal around the 11580 area, marked also with the FibTool at the 61.8 level of retracement.
As soon as I etered the trade, price broke the level I was expecing to act as support and went towards the 1 minute moving average. As this was not the intended trade and my entry level and stop loss were not appropiate for a possible MAB, I decided to exit the trade. It was either that or move the stop loss, something that I am trying not to do! Unfortunately, I missed a great downtrend!
Aw man, I’m sorry if that alert convinced you to take the 5min MAB loser. (I tried to cover myself by mentioning on the blog that price could be headed back up to the Hi-Lo GZ too, as I had been expecting a move up to the 1hour ema)
I didn’t lose anything on that ‘trade’, because the strength of the Bullish move up put me off, and confirmed that price was probably headed up!
A nice profit with your final trade, as price caught its breath at the D1 EQZ midline! I’m always thinking about entering a trade when price moves like that, but I’m never confident enough to find an entry point, and feel uncomfortable chasing price.
Would you say that those kind of trades work out for you more often than not?
Haha nothing to be sorry about! It was my decision to enter the trade!
I wouldn’t say that those are high probability trades. They are tricky, volatile, and we should only enter under certain circumstances (not what I did), for example, you are on profit for the day, you were following price since it tried to break that level in the past and if there was a movement looking for support, forming clear lower low and then going back up to re-test that level.