Review: Week 1 of July (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.

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BEARISH SIGNAL: SUPPLY CHANNEL ON AUDUSD

This week, I took just two trades; the first being a short on AUDUSD -- A supply channel spotted on 4HR.

Eventually, on 1HR, there formed a rising wedge which I regard as my sub-pattern. I took the trade after a bounce from a reversal zone and after consulting the stochastic.

SL of 37 pips was set above the swing high with a trailing stop of equal magnitude. I could not find any level that could bounce price against me before my target is reached so I have just my target as the level that could attract price.

While price was half-way to my target, I looked out for bullish divergence. If any did form, I would have exited -- but none did.

Price traded down to my target.

COUNTER TRENDING AUDUSD: GOING LONG IN SUPPLY CHANNEL

I have not exactly kept record of my wins against losses in counter-trend trades. However, in this trade, there was so much conformity with my trade rules that I couldn't ignore it.

I had perfectly mapped out things: bullish divergence, dragonfly doji on the cluster, green Fibonacci retracement cluster (and fib expansion as well) which is close to a resistant and then my target at the resistant side of the channel.

I had everything planned well.

But price stalled a while and broke down and took out my SL.

I followed my strategy thoroughly.

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.