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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SELL EURJPY: SHOOTING STAR ON FIBONACCI RETRACEMENT CLUSTER
This gladdens me. The fact that price reversed immediately after the bounce with very little draw-down after testing the resistance is a testament that I am doing something right. Coupled with the fact that it bounced also after hitting the support (indigo lines) leaves good feelings. Though I would really have loved if price made it to my target but the awareness that things do not always happen the way we want informed that line which was PERFECT ( I have restrained myself from throwing that word around lately but I think I earned it this time).
When price tested the resistance and formed reversal bars, I was desperate for the downward move to begin because this set up fitted very well into my definition of good trades. When price bounced off the support and formed and MSL, I was reluctant to exit my trade since I was sure it would decline. I felt price was probably heading high to test the resistance (thick black trend line) that had just been broken. But I had to exit in accordance to my " Exit Rule 2". I was glad I did as price rallied past my entry which would have left me with nothing.
In this recent past, I have had conflicting thoughts about whether my Exit Rules were too fast (which has its disadvantage) -- but not this day though -- certainly not in this trade.
SELL: FIBONACCI RETRACEMENT CLUSTER ON USDCAD
I missed a major decline. I cashed in 40 pips when I could very easily have bagged 180 pips, no thanks to my Exit Rule and me. I had reported that price formed a hammer when it got inside the cluster (two trend lines) and took out my trailing stop. For me, that was it and I went on to analyze other pairs. I actually could have done better. If I had checked 4-Hour time frame (which is principally where the set up was spotted), I would have seen that price still had all indications to decline.
I could have drawn a Fibonacci retracement tool from "2" to "3" and Fibonacci expansion tool joining the three points. The cluster was where price stopped to rally. It pained me to find out that I settled for very little when I could have had a lot more. I have learned my lesson and I believe I will have many opportunities to prove that.
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