Pan's Trading Journal
|April 6th, 2013, 10:42 AM||#11 (permalink)|
Futures Experience: Beginner
Favorite Futures: Forex
Posts: 142 since May 2012
Thanks: 258 given, 463 received
3rd to 5th April Trade
Saw a bullish reversal bar, enter at bar close. Exit with 25 points.
But immediately the next 4hr bar becomes very bearish in the 2hr mark, so I took a short.
Of course this 2nd bar become fully bullish at the 4hr close, taking out my 25 points stop in the process.
Lesson: if my strategy is to wait for bar close, then I must wait for the 4hr bar close to make a trading decision.
Price makes a 100 pips drop, then moves back up.
During the down and up move, I try to trade it and makes 4 trades but the net result is break even.
I should avoid violent moves like this: I will be either entering too late or not sure when the direction is going to change.
Better to stay away.
However price fully recover the 100 pips drop and continues higher.
When price breaks the previous bar high, I enter on small size and get 15 pips profit, afraid to hold longer.
But of course price continues to move higher.
Moves like this are taking out many stops in the market. Next time if I have the patient to sit out the original 100 pips move down, and then the subsequent big 100 pips move up happens: I can consider to enter full size at price break and hold longer.
A daily bullish engulfing bar pattern is forming just before NFP news. I took the risk and place a buy stop at the top of the engulfing bar (1.2950). The risk pay off and I exit at 1.2995.
Last edited by panjm; April 6th, 2013 at 11:26 AM.