Review: Week 3 of June (2015)

ENTRY RULES:

1. Is there a pattern on 4HR?
2. Is there a sub-pattern on 1HR?
3. What does the stochastic on 1HR signal?
4. Where is the closest support or resistance to my entry? -- and others?
5. Is there a swing high or swing low for SL (max 40)?
6. Set a trailing stop which is equivalent to my SL

EXIT RULES:

1.Did my target get hit?
2.Did a Market Structure (Low or High) form on any of the reversal levels?
3. What does stochastic signal?

My reviews will evolve around whether or not I took these rules into consideration before and after my trades. Also, it will reflect my emotions during and after each execution.

.......................................................................

This week, in GARTLEY ON AUDUSD, I have a lot to tell. It was owing to my good understanding of patterns (of which I am very much proud) that I was able to spot GARTLEY, reduce the PRZ with a trend line and mark out levels that can bounce price against me with fib clusters -- from which price did bounce from.

When price did appear to form reversal bars, I knew it was time to exit my LONG and go SHORT -- I was that confident -- though, I would have liked it to go to my target because I constantly get the impression that I risked so much for very little; which some times may result to holding on to trades and giving back all my profits. I was tempted to do so only that I convinced myself to not linger too much around hope.

When it was time to go SHORT, I went SHORT with no hesitation: at first with a pending order and later with an instant execution. Divergence has always been a key part of my trades and when it formed, it was like nature itself had called -- and when it calls, you answer.

I was optimistic price was going to decline to at least 0.7670 -- It never did make it that much. Throughout the trade, I was calm, no impulsive decision and I always played by my rules.

LONG ON EURUSD

This loss could have been easily avoided. I got to realize this at the time of filing this report. I gave the impression earlier that nothing could have been done better concerning this this trade putting into account everything and my composure during and after the trade. Well, I was wrong. Certainly, not during and after the trade though; it was before the trade. It never should have been executed.

The decline from the triangle was preceded by a bearish divergence which I didn't spot.That ultimately could have given me a "stay clear" signal. I missed that and I got burnt.

DEMAND CHANNEL ON AUDJPY

Though, I would very much have preferred price hitting my target, it was a fortunate thing that I had in place an exit plan which was spot-on since price descended shortly after my exit.

As soon as I spotted the bearish divergence, I exited.

In all of the positions highlighted above, I'm guilty of not setting my trailing stop.

About Moshow

Oseni Moshood ( Moshow) is a physicist, a blogger and a spot trader with years of experience. He trades only price actions partly because he thinks Economics is boring; or, probably because he failed Economics; and he loves fine artistic works.