Thursday, August 14, 2014

AUDUSD - 11 August 2014 - Daytrade

I'm still down with the flu so have mostly stayed away from trading this week. I did take one trade on the 11th August during the Euro / NY overlap, which I've recorded below. 

Price had been moving down for most of the day so I looked for a retracement to a significant S/R level that I had identified on the 30M chart. Once price was within this S/R level, I zoomed in to the 1M chart for an entry signal and saw a HVLR (high volume, low range) candle (first candle marked purple). It was a good candle, forming a new high after another bullish candle, so I knew the rise in volume and contraction in range had to come from sellers. 

(click to enlarge)

I didn't immediately enter, though. I setted up a pending short on the break of the HVLR's low, which took about 7 candles on the 1M chart. Normally I would've cancelled the order if it hadn't been triggered after 5 candles, but the price action looked bearish as price on the 1M chart refused to make new highs. 

I exited manually when I saw a HVLR candle form in the opposite direction (second candle marked purple) for a reward of 1.2R or so. My original reward target was about 2.5R, which would've been hit if I had left it alone. So while I did walk away with profit this time, my continual "trade management" denied me the full potential of this trade. 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.