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YM day trading with price action - My Journey


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YM day trading with price action - My Journey

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  #1 (permalink)
 mrBean888 
Singapore
 
Experience: Beginner
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Trading: Forex, Stocks
 
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Posts: 176 since Mar 2012
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I day trade the Mini Dow/FX in a discretionary manner using the 5 min chart. I also take the occasional trade on the daily timeframe
if there is a suitable setup. My focus is on price action and chart patterns with 20ema as the sole indicator.

My trading plan

Instruments and time frame
instrument traded: Forex (euro/usd pair)
time of trade: first 1-2 hours from the US stock market open
method of analysis: price action with 20ema
timeframe: 5 minute chart

Entry conditions
signal bar is in the direction of the intended trade
setup price action is familiar or at least somewhat familiar

Order and risk management
order: stop or market order
trigger: 1 pip beyond the signal bar
reward risk ratio: 1 or more
stop: placed at 1 pip beyond the signal bar or at the nearest pivot high or low. Not more than 1% or 12 pips, whichever is lower.
target: placed at the next potential support or resistance

Exit conditions
price hits the target or stop

Money management
capitalisation: USD2,500
lot size: micro lot
Take a break from trading and accumulate capital if the account is down 5%

The aim of this journal is to be publicly accountable for my trades, progress and mistakes or relapses. Through regular reviews,
I aim to develop the patience and skill to take 1 good trade at a time.

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 fourtiwinks 
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All the best in your trading and journal. Cheers!

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 mrBean888 
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1) The first trade was a range fade setup.

Prior price bars was in a tight trading range with sideways, overlapping bars. There was a doji bar with an upper tail and I saw it as a signal bar based on 2 reasons:
1) Failed breakout from a tight trading range. Price ended up closing at the top of the TTR
2) The bar is a pin bar with a noticable upper tail.

The risk was also within limits.

The failed breakout eventually turned out into a breakout pullback. I was stopped out quickly on the same entry bar.
Result: -10 ticks

On review, I broke one of my rules (signal bar has to be in the direction of the entry). The pin bar was a doji instead of a bear bar. Also, the TTR was always above the ema and an upside breakout could always happen.


2) The second trade was a trend reversal setup

Price was on an uptrend and the recent bars overshot decisively above the bull channel line. I decided to take a short based on the 3 reasons:
1) Bull channel line overshoot
2) Bear pin bar with noticable upper tail
3) Price was far above the ema

The risk was within limits.

Price went down a little but the bears did not have much strength to push price decisively lower. Instead, price evolved into a TTR. I decided to manually exit as price did not have a decisive follow through to form a trend reversal or at least a 2 legged counter trend move, even after 4 bars.

Result: 2 ticks (Breakeven)

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 mrBean888 
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The trade is a Trend Reversal setup

PA and risk analysis
Price was on a strong uptrend and there was no noticeable pullbacks along the way. Price then formed a strong bull bar which broke the bull channel line. I started to watch for possible signs of weakness after the possible bull climax. I decided to take a short based on 2 reasons:

i) Bull channel overshoot
ii) Price has started to reverse from the peak and 2 counter trend legs could form. 3x bear bars have already formed
iii) Price is way above the ema and could fall back to at least the ema or lower bull channel line

The risk was within limits too.
Risk: 9 ticks, Target: 7 ticks

Entry
I entered on an OCO stop sell order with a protective stop placed at the signal bar high.

Emotions
I had mixed feelings. On 1 hand, purely on PA interpretation, I was certain that a reversal or at least 2 legs of counter trend move was imminent. On the other hand, I had doubts if the bear move would have any meaningful follow through. After all, the bull trend was strong. It is also the reason why I dared not set a more ambitious target.

Trade Management
During the trade, price did not move downwards as expected initially. Price wavered between forming a bull and bear bar. I became nervous and shifted the target limit up by a couple of ticks.


Exit
Price hit the adjusted target limit.
Result: 5 ticks

On review, I did follow my rules. There was a setup and there were more than 2 reasons for the entry, the signal bar was in the direction of the entry and risk amount was within limits. The entry was fine with no screwups.
During the trade, I did let my emotions get the better of me and led to cutting the trade prematurely. Partly, it is due to the need for more PA experience i think.

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 mrBean888 
Singapore
 
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The trade is a range fade setup

PA and Risk analysis

There are many overlapping bars with noticable tails and the bars are grinding downwards gradually. A bear channel can be drawn. As price is moving both ways within the weak bear channel, I look for opportunities to enter at both the high and low of the channel. I noticed a 3 bar reversal at the channel low and decided to enter based on 3 reasons:

1) Bear channel overshoot
2) 2 failed attempts to push price down. Bulls pushed price back up, forming lower tails
3) Price at lower channel line

The risk was within limits also.
Risk: 12 ticks Target: 11 ticks

Entry

I entered on an OCO stop buy order.

Emotions
I experienced a roller coaster of emotions during the trade. Initially, price went up and I felt good. Price came to just 1 tick off the target and it stalled. It fell off a bit and went up again to 1 tick off the target. This repeated a few times. By this time, I was feeling anxious and was debating if I should drag the target limit lower.
I remembered my exit rules and left it alone. Price then fell back and reached the entry price. It fell again and went to the opposite situation, just 1 tick off the protective stop level. By this time, I was very frustrated and regretted not shifting the target limit down a bit. I went off the computer to get a drink.
Price then went back up again to the entry price. By this time, I just wanted to get out of the trade after going from feeling good to anxiety to frustration and regret and hope again.

Trade Management

I did not shift the target limit downwards as price came to within 1 tick of the limit. However, after seeing price come so close to both the target and the stop, I exited at market as price went back up to around break even. My emotions took control and I wanted to get out of a stressful situation without much rational thought.

Exit

I exited at the market around the entry price
Result: 4 ticks

On Review, pre-entry, price and risk analysis is good. I followed my rules. There was a good setup and more than 2 reasons to support the entry. The risk amount was also within limits. The entry was ok as well.
Emotion and trade management is no good and needs improvement. This is the 2nd time in a row where I exited prematurely only to see price hit the target. I have to stay firmer in following my exit rules.

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 mrBean888 
Singapore
 
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This is a pullback trade.

PA and risk analysis

Price was in a downtrend, below the ema and has reached the Low of Yesterday level. I looked out for a pause, a pullback up towards the ema and then possible weakness again. A Bear signal bar formed after price started to move up from the LOY level. I decided to take a short based on the following 3 reasons:
1) Possible 2nd leg in the pullback
2) Price is near to the ema
3) Bear reversal bar

The risk was within limits.
Risk: 14 ticks Target: 11 ticks

Entry

I entered on an OCO stop order and placed the stop at the signal Bear bar high.

Trade Management and Emotion

After I entered the trade, the entry bar was mostly bullish and gradually went up towards 1 tick off the protective stop. As price moved up with each tick, my heart sank and I started to doubt the trade more and more. By the close of the entry bar, I have decided that this trade would not reach the target and decided that exiting at break even is a good thing. I shifted the target limit up towards breakeven, even though it violates my exit rules.

Exit
Price went down on the next bar and hit the adjusted breakeven limit.
Result: 0 ticks (Breakeven)

On review, I did follow my entry rules. There was a good signal bar, more than 2 reasons for entry and the signal bar is in the direction of the entry. The risk is within limit and the entry execution is ok too.
Trade management and emotion is lacking again. This is the 3rd time in a row where emotions ruled my thoughts, I doubted the trade and did not give the trade enough time to run. Again, price hit the target after I exited prematurely.

Hence, I will set a goal to follow in order to stop exiting prematurely. Once I enter a trade with the stop and limit prices set, I'll go away from the computer and let the trade do its thing. After 15 minutes (3 bars), I'll take a look. If price has not reached either the target or stop, i'll look to exit. In this way, my exit plans will be followed.

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 mrBean888 
Singapore
 
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This is a potential trend reversal trade.

PA and risk analysis

Earlier on, price was in a downtrend. It then had a 2 legged counter trend move which clearly broke the Bear trendline. Price went just above the ema followed by a with-trend test of the extreme. Price went down near to the prior low and bounced up, forming a Bull reversal bar. I decided to take a long based on 3 reasons:

1) There is a bear trendline break
2) Price tested the extreme and bounced off around the same area twice
3) The bull reversal bar could be a double bottom

The risk was also within limits.
Risk: 11 ticks Target: 10 ticks

Entry

I made an entry using a OCO stop buy order. The stop was placed at the signal bar low.

Trade Management and emotion

After entering the trade, I went away from the computer, had some chocolates and took a break in the living room.
It was helpful in controlling my emotions and I was calm. In the meantime, I left the stop and limit prices alone and let the trade do its thing. After 15 mins (3 bars), I went back to the computer to check out the trade.

Exit

Price hit the target limit.
Result: 9 ticks

On review, I followed my pre-entry rules. There was a setup and 3 reasons to support it. The signal bar was in the direction of the entry and the risk was within limits. The entry was ok.
I followed the new plan for trade management and got away from the computer after entering the trade to prevent my emotions from interfering with the trade.
It was a good move as price went up and fell back down to the entry before moving up to reach the target. Had I been watching the trade, i could let emotions take over and shift the target price to breakeven again. I plan to continue with this over the next few trades to see its effectiveness.

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 mrBean888 
Singapore
 
Experience: Beginner
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Trading: Forex, Stocks
 
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Posts: 176 since Mar 2012
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This is a pullback trade

PA and risk analysis

Price was in an uptrend and is above the ema. A bull trendline can be easily drawn. Price then moved flat at a top and looked to be forming a bull flag. I saw a high 2 bar forming and decided to enter a long in anticipation of a flag breakout. The reasons are:
1) Price is at the bull trendline
2) Possible end of 2 legged pullback

The risk was also within limits.
Risk: 12 ticks Reward: 11 ticks

Entry
I entered on an OCO stop buy order with the stop placed at 1 tick below the flag low.

Emotion and Trade Management

After entering the trade, i went off the computer for 15 mins. My emotions were more or less calm by being away from the screen. After 15 minutes, I went back to check on the trade.

Exit
The stop was hit.
Result: (12 ticks)

On review, the setup and reasons for entering were not convincing enough. Price seemed to be forming a bull flag but price dragged on in a flat manner and became a TTR. Also it was the 3rd push up from the market open.
Pullbacks in a trend are said to be high probability and low risk trades but somehow, I have difficulty identifying pullbacks which will continue in the trend and those which end up drifting sideways to form a correction.
For now, I need to be selective in choosing pullback trades. The setup and reasons for entering has to be convincing and clear:
- Near ema and/or trendline
- M2B or M2S
- Convincing signal bar
- Price not in a TTR already

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 trendisyourfriend 
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mrBean,

Any reason why your risk is a bit larger than your profit?

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 mrBean888 
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Posts: 176 since Mar 2012
Thanks: 220 given, 139 received


This is a channel fade trade

Pre-entry Analysis

In terms of Price Action, price was in a gentle bear channel with up and down swings within the channel. As price
approached the lower channel line, I started to watch out for a possible upswing. I decided to wait for a confirmation bull bar because overall, the channel is sloping downwards and the 2 prior reversal bars are small bear bars. Eventually, price did move up from the lower channel line and had a 3 bar reversal setup. I decided to take a long based on 3 reasons:

1) Price has bounced up from the lower channel line
2) There were 2 prior reversal bars where bulls pushed price upwards from the lower channel line
3) It could be the end of a 2 legged down move

The risk was within limits.
Risk: 11 ticks Target: 7 ticks

In terms of Emotion, I was calmer as the price movement was more familiar compared to the losing pullback trade made earlier in the day and also had a "don't care whether this trade is a win or a loss" mindset. Additionally, I wanted to make a good trade which met the rules of the trading plan to compensate for the earlier losing trade where 1 of the basic rules was not met.

Entry

I entered on an OCO stop buy order with the stop placed at the low of the prior bar. The target was set at the top channel line.

Trade Management

During the trade, I did not go away from the computer although i watched some documentaries on youtube. Overall, I was calm, probably due to a combination of reasons. The setup is a more familiar one and i was having a "the trade result is not that important" mindset. Also, it was late in the night and there was probably not enough energy to get worked up.

Exit

The trade hit the target limit price.
Result: 7 ticks

On review, pre-entry was fine and i followed the rules. The entry was ok and the risk was within limit.
Trade management was ok too as there was no manual interference with the trade.

1 thing i need to look at is the RR ratio. So far, the risks are greater than the targets and this is something i'm going to look at next.

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 mrBean888 
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trendisyourfriend View Post
mrBean,

Any reason why your risk is a bit larger than your profit?

I think it is both emotions and a lack of a plan for setting targets.

Unlike setting a stop where the plan is to set it at the signal bar extreme and the max risk for any trade is 15 ticks, I have not set a clear plan for placing target prices yet. (Usually, i look at the prior pivot high or low)

Emotionally wise, admittedly, everytime i put on a trade, i have this nagging doubt about whether the trade will have enough strength to hit the prior pivot high/low or not, so sometimes, i set it to a few ticks off the the prior pivot.

Also, irrationally, 10 ticks seem to be the magic number for me ( dont know why). If the trade can reach 10 ticks, i'm happy. So sometimes, even though the prior pivot high or low is more than 10 ticks away, I dare not set it to that level and place it at or around 10 ticks. Probably, its the fear of a winning trade turning into a loss or BE.
Another thing is the lack of faith in the setups i guess.

I do notice this pattern and will look into it, especially the winning trades so far to see if the targets have been set too low and for the losers, if there are cases where the trade almost touches the target and becomes a loss instead.

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 trendisyourfriend 
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In your last 100 trades can you say how many times prices hit the prior pivot high/low vs just a few ticks shy of it before hitting your stop loss at various distances, say -5..-10 etc.?

You need to backtest your setups using different setiings and start from there. This is usually how we build some confidence. I know it's dull to do but it needs to be done.

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 mrBean888 
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There were 3 trades. 1 breakout and 2 range fade trades.

Overall, it was not a good trading day. I did not follow my plan fully for each trade with mistakes made either in the entry or exit. Additionally, my emotions took the better of me at times.

1st Trade: Breakout

Pre-Entry Analysis
Price had a big swing up following a big swing down and was at the prior pivot high. Even though breakout is not a setup which i trade, i decided to give it a try and entered into a long based on the following reasons.
1) Price was on a strong upswing and after a failed breakout earlier (the bear bar with a long upper tail), another bull bar with a lower tail formed. I interpreted it as a possible breakout pullback
2) The bear bar could be the end of the first leg and the second leg could be a breakout

The risk was within limits. Risk: 10 ticks Target: 9 ticks

Emotionally wise, I was aware that breakouts are not part of my trading setup but the urge to give it a shot was strong. A lot of it was due to market action over the past week where there were sharp reversals and breakouts with little/no pullback. I did not enter and didn't feel good about seeing price shoot off.

Entry
I entered on an OCO stop buy order.

Trade Management
It was poor. I stayed at the computer and my emotions got the better of me. At the start of the trade, it hit home that i had broken my rules and to rub it in, price went a few ticks up and started to fall decisively. I felt angry at myself for letting fear and greed take control and also felt a bit helpless.

As price approached the stop level, i became fearful and cancelled the stop. Price hit the stop and stayed there for a while. At that time, i decided that enough is enough and exited at market.

Exit and Post Trade PA
Exited at market. Result: -12 ticks
After hitting the stop, price went down a lot more.


2nd Trade: Range Fade

Pre entry Analysis
After exiting with a loss, i saw that there was an opportunity. Previously, the breakout had failed and was falling from the prior pivot high. Price had a big down, up and was starting to fall again. I treat it as a trading range session. I decided to take a short based on 2 reasons:
1) Price was falling from the the top of the range
2) There were already 2 bear bars which closed at their lows. There could more to go.

The risk was within limit. Risk: 8 ticks Target: 10 ticks

Regarding emotion, I wasn't feeling very confident. Reasons being the decision was made very quickly and it was the opposite stance to what i had taken earlier. There wasn't as much time to contemplate and i wasn't sure if i was making another rash trade although the setup looks reasonable and the risk was within limits. The loss from the first trade also affected me emotionally.

Entry
I entered on an OCO stop sell order with the stop placed at the prior bar high.

Trade Management
It was not good. The negative feelings from the first trade plus the lack of confidence in this trade made me very stressful. Price also went up initially and i was thinking that i had screwed up again in a rash trade. I decided to override the target limit and manually exit instead, even though 3 bars had not yet passed. When price went down past the entry and started to stall a bit, I quickly exited manually at market. Again, I broke my rules by not leaving the computer and interfered with the trade.

Exit and Post trade PA
Exited at BE with some profit. Result: 7 ticks
Price continued downwards, hit the original target limit and went down more.


3rd Trade: Range Fade

Pre-entry Analysis
Price was approaching the low of the trading range, which is the prior pivot low and there was a bear bar with buyers pushing up from near the low, forming a lower tail. A small bull bar with an upper tail and then a stronger bull bar formed. I decided to enter a long position based on 2 reasons:
1) Price was showing signs of bouncing up from the trading range low
2) The setup looks somewhat like a 3 bar reversal, although it is not a textbook one.

The risk was within limits. Risk: 11 ticks Target: 10 ticks

Emotionally, I wanted to make a trade which obeyed the entry rules and was somewhat calmer by then.

Entry
I entered on an OCO buy stop order with the stop placed at the prior bar low.

Trade Management
It was not good again. I panicked and did stupid things when initially, price did not move up as hoped. Price went up, fell back to form a higher pivot low and moved up. At the back of my mind, i saw that although price went down initially, it did not show much bearish strength. Nonetheless, I just wanted to exit and dragged the target limit price downwards by several ticks.

Exit and Post trade PA
Price hit the adjusted target limit. Result: 5 ticks
Price continued up, hit the original target limit and eventually broke out of the trading range.

On review, it was not a good day. My emotions took over especially during trade management when price initially did not move as hoped. Additionally, i took a trade which was not my setup, as a punt. Greed, fear and lack of confidence are my weaknesses. There is still lots of work to do in terms of sticking to the trade plan. I am planning to do a thorough journal review with regards to trade management and exits.

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 mrBean888 
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Range Fade

Pre-entry Analysis
Price has been in a trading range as shown by no clear trending movement, non directional ema and with many bars having noticable tails. Earlier on, price made a big move up, then a big move down. A reversal bar formed at the TR low and price started to move up. There was a small consolidation with higher lows forming near the TR low. I decided to take a long due to 3 reasons:
1) Price has moved up from the TR low
2) Higher pivot lows were forming at the consolidation near the TR low
3) The bull signal bar showed bullish strength as the bar was forming

The risk was within limits.
Risk: 9 ticks Target: 9 ticks

Emotionally, I was calm and had some confidence in the setup. Even though it was not exactly a buy at the low of the range, price was still near the TR low and the bulls looked stronger.

Entry
I entered on an OCO stop buy order. The stop was placed at the signal bar low and the target was 1 tick off the High of Yesterday (HOY) level.

Trade Management
I went away from the computer for a while and it helps to keep me calm. There was no urge to interfere with the trade e.g. adjust the target limit price. I was also mindful of the importance of sticking to the plan and had a mindset that the result of the trade did not really matter.

Exit and Post Trade PA
The trade hit the target limit level.
Result: 9 ticks

Price went a bit beyond the target limit level and attempted to break out of the HOY level but did not succeed. Nonetheless, there was no clear failure and a TTR formed below the HOY level.

On review, it was a satisfying session as there was a winning trade and I followed the plan fully. My emotions were under control and there was no interference in the trade. An important part of this calm feeling is the mindset that the result is not a make or break situation. I need to continue this mindfulness of following the plan, maintaining a calm mind and not to emphasize too much on a trade result, which is something I cannot control.

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 mrBean888 
Singapore
 
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Range fade trades

1st Trade:

Pre-entry analysis

Price was grinding upwards in a bull channel with lots of overlapping bars. Price was trading both ways and I was looking for opportunities to enter near the channel lines. As price was in a tight trading range at the channel low, i decided to take a long based on 2 reasons:
1) There was a failed breakout from the bull channel line earlier on and price had reversed back into the channel
2) The sideways move was near the channel low

The risk was within limits. Risk: 14 ticks Target: 15 ticks

I broke my pre entry rules for this trade. I did not wait for the bar to close. Also, the prior bar was a bull doji and was not a good signal bar. I was somewhat ruled by emotion. After 2 days of "no action", i was a little uncomfortable with not making a trade for a 3rd consecutive day. Also, i feared missing out on a possible strong up-move to the channel top. Also, it was a mix of a TTR breakout and a range fade.

Entry

I entered on an OCO stop buy order with the stop placed at the entry bar low and the target near the top channel line.

Trade Management

I went away from the computer. My emotions were calm and did not interfere with the trade.

Exit and post trade PA

Price hit the stop level.
Result: -14 ticks

After hitting the stop, price reversed up, had a couple of overlapping bars before breaking out to form a higher pivot high at the channel top.

On review, I did not follow my basic pre-entry rules.
On reflection, i noticed that when i break my pre entry rules, my mind will be filled with thoughts on how the price action is excellent for an entry and my emotion is dominated by the need to avoid missing out on a good run up. There is a small voice in my mind which says that i am breaking a rule but it does not register. Only when i entered and is stopped out or when price starts to move against the entry do I "wake up" and fully realise that i had broken a rule.

I need to build up real time self awareness and be aware whenever i feel the need to enter a trade to avoid missing out on a strong up-move. Usually, this involves some sort of breakout when a bar which is showing signs of strength looks very tempting.


2nd Trade:

Pre-entry analysis

After getting stopped out, I noticed that the bar turned into a bull reversal bar. I decided to take a long entry based on 2 reasons.
1) Bull reversal bar at the bull channel low
2) Price has been forming higher lows previously and it is also forming a higher low now.

The risk was within limits. Risk: 11 ticks. Target: 10 ticks

Emotionally, even though i was just stopped out, i was calm about this trade as it is a familiar one.

Entry

I entered on an OCO stop buy order with the stop placed at the signal bar low and the target placed in the middle of the channel.

Trade Management

I went away from the computer and did not watch the price move tick by tick. I felt calm and did not interfere with the trade.

Exit and post trade PA

Price hit the target.
Result: 10 ticks

Price had a couple of alternating sideways bars before breaking out to hit the channel top.

On review, I followed my rules and kept a steady mind and heart. The trade was exited according to an exit condition. However, i have to be bold in setting bigger targets.

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 mrBean888 
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I did a review of the trades during the weekend and list the findings below.

- 4 trades were exited at BE. 3 of them were due to manual inteference and all 3 hit the target eventually.

- 6 trades hit the target. 2 of these targets were intefered with and they hit the original target eventually. 5 of the 6 trades went beyond the target by at least a few ticks.

- 4 trades were stopped out. All 4 broke one or more of the pre-entry rules and hit the stop target promptly.

- 5 trades were intefered with. All 5 are due to getting anxious and worked up while watching price tick by tick

- All losing trades involve either a TTR or a breakout

- More than half the winning trades have a reversal bar or a 3BR. There are noticable tails which show price rejection

- More than half of the winning setups are in a channel. The rest are trendline breaks and pullbacks

- Price is able to reach the prior pivot high/low or technical level as a target

Conclusions:

* Inteference sabotages trades and profits
* Watching every tick builds up anxiety while in a trade
* Targets can be bigger
* Rash entries or breaking pre-entry rules lead to losing trades
* I am not good at trading TTRs or breakouts
* Reversal and 3BR are good signal bars if the context is right
* Channels work best so far, followed by trendline breaks and pullbacks

Top 3 to work on:

-> Let the trade do its thing. No inteference
-> Set larget targets (at least at the prior pivot high/low or a technical level)
-> Avoid TTR and breakout price action

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 mrBean888 
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Trend Reversal setup

Pre-entry Analysis

Price was in an uptrend within a channel and there was a bull channel overshoot. Price reached the High of Yesterday level and had a failed intra-bar breakout followed by a bear inside cum reversal bar. I decided to take a short based on 3 reasons:
1) Price had a channel overshoot and is near the HOY level
2) Failed breakout at HOY level
3) Price is far away from the ema

The risk was within limit.
Risk: 13 ticks (signal bar high)
Target: 11 ticks (prior pause doji bar low. 9 ticks + 2 ticks)

Emotionally, I was calm as the entry plan was followed and I had taken such setups before. However, there was still a bit of uncertainty as the overshoot towards the HOY level looked rather bullish.

Entry

I entered on an OCO stop buy order.

Trade Management

After the trade was entered, I switched to other windows and listened to some music. I took a look at price occasionally but did not dwell on watching it tick by tick. Overall, I was calm and had no urge to interfere with the trade. I did feel a bit nervous when I looked back and saw that price went against the trade initially. However, i continued to switch to other windows, listened to music and did not get all worked up.

Exit and Post trade PA

Price hit the target.
Result: 11 ticks

Price continued in a steep down swing and broke the ema and lower channel line. There was a bull pause bar before another steep second leg down swing occurred.

On review, I followed my rules and followed the top 3 to-do action plans: No trade interference, no TTR or Breakout trades, set bigger targets. For this trade, i set the target to be a couple of ticks wider beyond the prior minor support. Given how much price has moved, i still need to do more reviews on setting targets.

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 mrBean888 
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Range Fade

Pre entry

After a sharp upswing, price started to have a 2 legged pullback to the ema, rose up to form a slightly higher low and had a downswing to form a slightly lower low. A bullish inside bar formed and it looked like a bear channel could be forming. 2 channel lines could be drawn. After a bull follow through following the bull inside bar, i decided to take a long position based on 3 reasons:
1) Price was moving up from the lower channel line
2) A 3BR variant formed. Bullish inside bar followed by another bull follow through bar
3) Price action was gentle and wavey within the channel

The risk was within limit. Risk: 14 ticks Target: 8 ticks

I did not concentrate fully on the chart as i was talking and watching youtube videos. Hence, i was not fully sure of the trade and did not prepare the order early. I quickly calculated the risk but was anxious, did not find a target point and arbitarily set it to around 10 ticks.

Entry

I entered on an OCO stop buy order. The stop was placed on the signal bar low and the target was arbitarily set.
The order was not done well. In my haste, i entered the entry price at 2 ticks above the intended entry price. Hence, the target was 8 ticks away, instead of 10.

Trade

During the trade, I switched over to the web browser and did not watch the price tick by tick. Overall, i was calm, although i felt a bit anxious because the entry was a bit screwed up.

Exit and Post trade PA

Price hit the target.
Result: 8 ticks

Price paused on the next bar, then went up to the channel high and had a failed breakout. Price then meandered in a TTR at the channel top.

On review, the trade reasoning was sound while the entry and reward calculation was not good. As i wasn't fully concentrating, the order was prepared late and in a haste, I made a mistake when entering the entry price and did not properly calculate the target level.

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 mrBean888 
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Trend reversal cum Range Fade

Pre entry Analysis

Price was in a gentle upmove when it broke down sharply past the trendline, ema, prior higher pivot lows and HOY level. It reached near the prior pivot low where buyers came into the picture to form a bear bar with a lower tail. Price then formed another bull doji bar where bulls again pushed price up from the same level. A bull follow through bar formed with a close at the high. This is a 3BR setup. I decided to take a long based on 2 reasons:
1) 2x price rejections off a prior pivot low followed by a bull FT
2) Price is far below the ema
3) A 2 legged move up could occur

This has some elements of a range fade and trend reversal. Price formed a big up and then a big down swing. (Trading Range) It also broke a bull trendline and could have a with-trend test after the trendline break (Trend Reversal).

The risk was within limits. Risk: 15 ticks Target: 11 ticks (1 tick off the ema)

Emotionally, I was calm as i followed the pre-entry rules. However, i had a bit of uncertainty as the HOY resistance level was quite near and the prior down swing was strong.

Entry

I entered on an OCO buy stop order. The target was placed 1 tick below the ema value as i thought that price could make a 2 legged move up to the ema.

Trade

During the trade, i shifted some of my attention to other apps and did not watch the price move tick by tick. I felt a bit anxious as price initially formed a bear bar. However, i thought that the bear bar was the end of the first leg and a second leg up could still occur.

Overall, I was emotionally steady and did not have the urge to interfere with the trade.

Exit and Post trade PA

Price hit the target.
Result: 11 ticks

Price formed a TTR, edged upwards a bit more to form a lower high test after a trendline break and then fell more to form a lower low.

On review, I followed my rules, was calm and the let the trade run its course. It was a good trade.

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 mrBean888 
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Pullback and Failed Reversal

1st Trade: Pullback

Pre-entry
Price was in a downtrend and was showing signs of a pullback. Price was in a tight trading range with a few bars having lower tails where bulls pushed up a bit. There looked to be a first leg of a pullback within the TTR and the breakout of the TTR signified the second leg of the pullback. Price reached the ema and the following bar was a bear bar. I decided to take a short based on 3 reasons:
1) 2 bar reversal near the ema
2) This could be the end of a 2 legged pullback
3) There was no trendline break yet

The risk was outside of the 15 tick limit. It was 17 ticks. I broke the rule on risk.
Risk: 17 ticks Target: 15 ticks

Emotionally, I was calm and the setup looked sound. There was a bit of an urge to enter due to missing a prior failed reversal on the second leg down with 2 reversal bars which I did not enter due to the risk exceeding 15 ticks.

Entry
I entered on an OCO sell stop order. The stop was placed at the prior bar high and the target was placed at the TTR low/prior pivot low.

Trade
Price went down decisively first but it did not reach the TTR low and started to turn back up. Price inched up towards the stop. I was half looking at the web browser and half watching the trade. My heart started to sink as the initial profit turned into a loss. I was a bit tempted to remove or shift the stop higher but stayed put. I had already made a mistake and did not want to make another one.

Exit and Post trade PA
Price hit the stop.
Result: -17 ticks

Price hit the stop and fell back down in the intended direction. Near the close of the bar, it looked like forming a bear reversal bar at the TTR top and i decided to take a short but price slipped away from the intended entry price before i could send the new order.

On review, i did not follow my 15 risk limit rule and paid the price for it. The trade setup did look sound though. Also, my record in pullback trades continues to be poor. I have yet to have a winning trade based on a pullback setup. I need to only trade the best setups and follow all the rules when it comes to pullbacks.

2nd Trade: Failed Reversal

Pre entry
Price was coming down from the ema in a downtrend and I decided to take a short based on 2 reasons:
1) There was a prior 2 legged pullback to the ema. Price was coming down without showing much bull strength after the 2 legged pullback.
2) There was a prior small double bottom where early bulls pushed price up towards the ema. Their protective stops
will likely be placed at the double bottom low.
3) The LOY support level is within sight. Price could make a push down towards the LOY level

The risk was within limit.
Risk: 15 ticks Target: 15 ticks

Entry
I placed an OCO stop sell order at 1 tick below the double bottom low.
The stop was placed 15 ticks away. The target was placed 5 ticks above the LOY level.

Trade
Price hesistated for a while after the entry before falling decisively.
I was calm as the trade played out.

Exit and Post trade PA

Price hit the target.
Results: 15 ticks

Price continued downwards and broke the LOY level before forming a TTR.

On review, it was a good trade and observation and I followed the plan without breaking any rules.

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 mrBean888 
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Range fade setup

Pre entry

Price is in a bull channel. Prior to the entry, price made a 2 legged upmove from the lower channel line and was nearing the channel top. It formed a small bull flag near the channel top and there was a failed flag breakout near the channel top. A bear reversal bar near the channel top formed and I decided to take a short based on 3 reasons:
1) Price was near the channel top and formed a bear reversal bar
2) The flag breakout failed
3) Price was some distance away from the ema

The risk was within limits. Risk: 12 ticks
Target: 12 ticks

Emotionally, I was calm as the price action was not so violatile and the setup was a familiar one. There was a bit of uncertainty as it was a short in a bull channel although it was not a dominant feeling.

Entry

I entered on an OCO stop sell order.
The stop loss was placed at the prior bar high.
The target was placed somewhere at the channel mid.
As this was a range fade short in a bull channel, i was a bit cautious in case price formed a higher pivot low.

Trade

During the trade, i did not watch the price tick by tick to avoid being overwhelmed by emotions. I switched between looking at the web browser and the chart.
Overall, I was calm although as price was pausing somewhere between the entry and the target, i started to feel a bit anxious and had an urge to meddle with the target level.

Exit and Post trade PA

Price hit the target.
Result: 12 ticks

Price ended its first leg down-move, had a counter upswing and a second leg down which touched the channel low. It then started to move up to the channel high.

On review, the trade setup was sound and I followed my rules. However, i noticed that anxiety and the urge to meddle with the trade has been creeping back up. I need to be on guard against impulsive interference and if needed, get away from the computer for a while or do something soothing like listening to music or watching some videos.
I also need to be more bold in setting targets. I have raised the targets numerically a bit in recent trades although there is still more room to set bigger ones.

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 mrBean888 
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Range fade

Pre entry
Price was in a downward channel and it broke through the upper channel. It formed a TTR for a while before falling back. A bear inside bar with an upper tail formed and i decided to take a short based on 3 reasons:
1) Price is at the channel top
2) The bearish inside bar closed at the low. There could be more follow through
3) There was a mini double top when price broke through the top channel line

The trendline break could be the start of a trend reversal or a channel fade. Either way, there could be a test of the low.

The risk was within limit. Risk: 14 ticks Target: 14 ticks

Emotionally, I was calm. THe price action was familiar and its movement was not too violatile. I also reminded myself to follow the rules.

Entry

I entered on an OCO sell stop order.
The stop was placed at the prior bar high and the target was placed at the channel mid.

Trade

The trade initially went down as anticipated but it faced resistance from the buyers. It had difficulty pushing down and then bulls pushed price up. After 3 bars, there was little follow through in either direction and i decided to manually exit the trade, according to my time based rule.
Before manually exiting, i did not interfere with the trade.

Exit and post trade PA

Manually exited with a small loss
Result: -3 ticks

After exiting, price formed a trading range at the ema. The downtrend has reversed into a trading range. The target was not hit.

On review, the trade was ok. I followed the rules and the decision to exit manually was the correct one. The setup was not the best looking one although it was a familiar one. Emotionally wise, i was calm and able to keep my emotions in check, mainly because i did not watch the trade tick by tick. There was not much of an urge to meddle with the trade.

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 mrBean888 
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Trend Reversal setup

Pre entry
Earlier on, price was in a bull channel. It had a channel overshoot and a reversal which broke the bull channel line. After breaking the bull trendline, a TTR occured and was followed by a 3 legged test of the extreme. The test was a small overshoot. A bear inside bar followed and i decided to take a short based on 3 reasons:
1) Reversal following an overshoot test of the extreme after a bull trendline break
2) Possible double top
3) Bear inside bar

The risk was 18 ticks and the target was 15 ticks.

Emotionally, I was calm and clear headed about the price action and setup. I was watching the chart
bar by bar and taking notes about the price action.

Entry

I entered on an OCO buy stop order.

The stop is placed at the signal bar high and the target is placed at a minor prior pivot low.

Trade

During the trade, price moved hestitatingly downwards. Each time, it moved down a bit, paused or went up and inched down a bit more. I could feel the tension rising especially as price inched down slowly towards the target.
However, I distracted myself by watching some videos and it helped to reduce the stress. Additionally, i reminded myself to make exit according to plan and not manually interfere with the trade.

Exit and post trade PA

Price hit the target.
Result: 14 ticks

Price hit the target and went down more towards the ema. There was a minor pullback before price moved a bit more downwards for a second leg.

On review, it was a sound trade. I also find that taking notes about the ongoing price action helps me to follow price better, have a clearer mind and be more emotionally stable. The targets I set have a larger buffer now but price still exceeds the target by more than a few ticks.

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 mrBean888 
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I gathered some stats for the trades made in June 2013:



Setup observations:
The winning setups are Range Fades, Trend Reversals and Failed Reversal.
The breakeven trade is a Range Fade setup
The losing trade is a Pullback setup.

Discipline observations:
I mostly followed my rules except for the one where the risk exceeds a certain amount. The range of the bars on the 5min chart have been wider in June compared to May.

I also largely followed the goals set in the previous review, which are to set larger targets, avoid trading TTRs and Breakouts and to leave the chart after entering a trade.

On review for June, it was generally a positive month in terms of trade results and discipline. I started on 2 new practises this month:
- Read my plan aloud to myself before looking at the chart
- Take notes on the price action of each bar during the trading session

I found them helpful in following the market better, having a clearer mind and having more patience with less urgency to enter trades for the sake of action.

Regarding targets, i have set larger targets this month but the risk still mostly outweighs the targets set. Also, price mostly goes furthur in the anticipated direction after hitting the target. I need to treat setting targets as seriously as setting stops. To do so, for future journel entries, i'll also highlight my stop and target levels on the chart. Hopefully, it'll force me to give target setting more thought.

For setups, range fades and trend reversals are the winners and pullbacks are still my weakness. For pullbacks, i need to take only the best looking PB setups. There is also a new setup which i started to look at, which is failed reversals. It is a new setup for me and i also take only the high probability failed reversal setups.

The 3 action plans for July and more are:
-> Continue to read the plan aloud and take notes on the ongoing price action
-> Highlight stop and target levels on the chart for each trade and add them to the journal entries
-> Take only the best pullback setups (clear M2B, M2S and flag setups)

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 mrBean888 
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Range Fade

Pre entry
Earlier on, price had a steep upmove and then evolved into a tight trading range which slowly grinds upwards. A bull channel can be drawn. Price had formed a higher pivot low in the middle of the channel. It went up to the channel top and came back down to the middle of the channel at the same level as the prior higher pivot low. A bull reversal bar formed and i decided to take a long based on 2 reasons:
1) The reversal bar had occured near the lower channel line
2) Price could have a mini double bottom at the prior higher pivot low level.

The risk was within limits.
Risk: 10 ticks Target: 10 ticks

Emotionally, i was calm and made sure that the rules were met before deciding to enter.

Entry
I entered using an OCO stop buy order.

The target was placed at the prior high, near the channel top. (blue line)
The stop was placed at the signal bar low. (pink line)

Trade
During the trade, i was calm and did not look at price tick by tick. Price moved up and came to 1 tick off the target and stalled. My anxiety started to build up.

Then price started to fall. It stalled for a while and during the next bar, it fell decisively and hit the stop. My mood was down especially when price was just 1 tick off the target. However, i did follow the rules and did not manually interfere with the trade.

Exit and Post trade PA
Price hit the stop.
Result: -10 ticks

Price broke the lower channel line a little, formed a TTR cum small double bottom at the ema and rose up to hit the original target.

To review, I had mixed feelings on this trade. Obviously, taking a loss is not that pleasant especially when price was just 1 tick off the target and price hit the target eventually after being stopped out.
On the other hand, i followed my rules for the trade and if it had hit the target, i would consider this to be a good trade.
My goal is to stay focused and stick to following my plan.

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 mrBean888 
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Trend Reversal, Failed Reversal

Pre-entry
Earlier on, price had a steep upswing and evolved into a TTR which broke the bull trendline. There seemed to be a lower pivot high within the TTR. Then, there was a bear breakout but buyers pushed up a bit. A bull reversal bar then formed with bulls pushing up from the same level. A bull bar with a close at the high followed. This looked like a 3BR setup but there was no follow through on the next bar and a sideways overlapping bear bar formed instead. This could be a lower pivot high after the bull trendline break and a lower high test of the extreme.
I decided to take a short below the bull reversal level (horizontal blue line) based on 3 reasons:
1) Price had broken the bull trendline and was followed by a TTR cum lower pivot high test of the extreme
2) The TTR cum lower pivot high could be seen as a double top
3) There was no follow through following the 3BR and a lower pivot high looked to form instead.

The risk was within limits.
Risk: 12 ticks Target: 11 ticks

Emotionally, I was somewhat in 2 minds over interpreting the price action. On 1 hand, it could be a trend reversal and a lower pivot high. On the other, the TTR could be a pullback which had a failed bear breakout before continuing the up move. Hence, I had feelings of doubt when making the entry. Also, I had the feeling of the need to make an entry.

Entry
I entered on an OCO stop sell order.
The stop was placed at the prior bar high (red horizontal line) and the target was at one of the previous pivot high (green horizontal line)

Trade
I did not manage the trade well. Although i left the chart and did not look at the price tick by tick, my insecurity and uncertainty took over and i intefered with the trade. After seeing price move down but stall, I manually shifted the target up by a few ticks. My overwhelming emotion and thought was to exit with a profit at around 10 ticks. I think a large part of this is due to the previous trade where the price came within 1 tick of the target and fell back to hit the stop.

Exit
Price hit the adjusted target.
Result: 9 ticks

Price went down past the adjusted and original targets and formed a TTR. It then had a break out and went down further.

On review, I broke one of my rules and manually intefered with the trade by shifting the target level. I think the outcome of the previous trade was still in my mind and affected my thoughts and confidence. In fact, before the market open, I was having some doubt if i could ever become consistently profitable.
I think when my emotions and thoughts are not at their optimum, it is better to totally leave the computer after making a trade in order to not let emotions take over.

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 mrBean888 
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Range Fade and Failed Reversal

Pre entry
Earlier on, price had a steep fall of 5x bear bars after an upmove. It looks like a trading range (big up-big down). Price then broke down from the HOY support level but the breakout failed after a few bars as price went back up above the HOY level. The area where the breakout failed is also close to several prior pivot lows.
Price then formed a bear reversal bar near the ema. The next bar started off with a bear push down to the HOY level before buyers pushed price up decisively. I decided to take a long based on 3 reasons:
1) Price is in a trading range and had a prior failed downside breakout. It could now move back up.
2) The bear reversal bar could be the end of the first leg. A second leg up could happen
3) Bears who sold early could be trapped and their stops may push price up even more

The risk was within limits.
Risk: 10 ticks Target: 14 ticks

Emotionally, I was calm and quite certain that there could be a failed bear reversal after watching the prior price action.
I made the decision to enter in a calm state of mind.

Entry
I entered on an OCO stop buy order. (1 tick above the blue horizontal line)
The stop was placed at the bear reversal bar low. (red horizontal line)
The target was placed at one of the prior pivot highs. (green horizontal line)

Trade
Again, i intefered with the trade. This time, I shifted the stop up to breakeven on a whim. I broke my rules. First, i watched the chart tick by tick and my emotions grew stronger every time price stalled or went down. Second, i decided to shift the stop to BE to avoid taking a possible loss. I shifted the stop after seeing price move up and then start to fall back. I dared not take a loss and shifted the stop to BE. It was done in the heat of the moment and not part of the plan.

Exit and Post trade PA
Price hit the adjusted BE stop.
Result: 0 ticks

Price fell back to form a bear bar and the next bar went back up decisively. The third bar hit the original target. Price then had a pullback to the ema before rising up more.

On review, this was the second trade in the row where i intefered with the trade and exited prematurely. I have to be not afraid of losses and not fiddle with the exit levels. On reflection, for the last 2 trades, i did not review my trading rules before trading as i was lazy and felt confident that the rules are already ingrained into my mind. Also, instead of following the plan to distract myself or leave the chart, I started to watch the price tick by tick during the trade and let myself get stressed and worried.

Hence, for the future trades, I have to carry on doing what i did right previously. For future trades, i aim to :
-> Read the trading rules aloud before trading
-> Maximise the web browser or leave the computer after entering the trade

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 mrBean888 
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Pullback setup

Pre entry
Earlier, price had a bull channel overshoot, double top and a reversal which broke the bull channel lines. Price went downwards with lower pivot high and low until the HOY level. Price bounced up to the ema and had a failed breakout past the prior high. A bear bar then a sideways doji followed, with buyers pushing up from the same level. I decided to take a short based on 3 reasons:
1) Failed breakout from prior high
2) 3 bar reversal variant
3) The doji following the 3BR could be the end of the first leg. There may be a second down leg to go

The risk was within limits.
Risk: 10 ticks Target: 10 ticks

Emotionally, I was calm and followed the price action clearly.

Entry
I entered using an OCO stop buy order. (blue line)
The stop was placed at the signal bar high (orange line).
The target was placed at the HOY level which also coincided with prior pivot lows (green line)

I entered late and bought at 1 tick higher.

Trade
I did not watch price tick by tick and switched to the web browser. I only looked at the chart occassionally and this helps to maintain calmness and level headedness. There was no urge to meddle with the exit levels.

Exit and post trade PA
Price hit the target
Result: 9 ticks

Price formed a trading range.

On review, there was an improvement in discipline and letting the trade do its thing. I resumed reading the plan aloud before trading and to leave the chart while in an entry and not watch price tick by tick. I should continue to do this.

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 mrBean888 
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Range Fade

Pre entry
Price was in a bear channel with gentle lower highs and lows. Price was approaching the lower channel line and it bounced up to the ema before falling back to around the same level. I saw the price action as having 2 legs down. Price then formed a doji inside bar followed by a bull bar. I decided to take a long based on 2 reasons:
1) Price was near the lower channel line and 2 legs down had ended
2) The setup was a 3BR variant and bulls seem to be pushing up from the same level near the lower channel line

The risk was within limits.
Risk: 12 ticks Target: 14 ticks

Emotionally, I was calm when deciding to enter the trade.

Entry
I entered on an OCO stop buy order.

The stop was placed at the signal bar low (pink line)
The target was placed at a prior pivot high (green line)

Trade
The trade quickly proved to be incorrect and i was quickly stopped out within the entry bar.
I felt down and a little surprised to see price move down so quickly

Exit and post trade PA
Price hit the stop
Result:-12 ticks

Price broke down past the bear channel and reversed up to form a trading range.

On review, this was not a good setup. Although it could be 2 legs down, the bars had lots of overlap and was essentially sideways. It is more like a TTR. Somehow, i did not see that price could be in a TTR. Perhaps when there was a channel line, i developed tunnel vision and did not analyse price objectively. I could be too eager to look for setups near the channel lines. I need to be alert of overlapping, sideways bars and avoid trading them.

Secondly, winning trades are a mix of single and double digit ticks while losing trades are mostly 10 or more ticks. I have to set bigger targets more regularly, subject to price action, so that 1 losing trade does not set me back by 1-2 trades.

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 mrBean888 
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Failed Reversal

Pre entry
Earlier on, price had a steep downfall which broke the lower channel line. There were 5 successive bear bars in the downswing. A bull reversal bar formed. I was thinking of a channel line overshoot and a reversal and was looking for a second entry long. The next bar started with a bull bar which initially had a bull follow through but sellers took control and pushed price decisively down to close at the low. I decided to change my mindset and take a short based on 2 reasons:
1) The bull reversal bar could be a failed reversal bar which traps early buyers especially when the next bull bar turned decisively into a bear bar which closed at the reversal bar low in the final moments.
2) There was a first steep downswing and there could be another downswing after a brief pause

My emotional temperature was overall calm and alert. Writing commentry of the ongoing price action helps a lot in this aspect.

The risk was within limit.
Risk: 10 ticks Target: 10 ticks

Entry
I entered using an OCO stop buy order

The stop was placed at the signal bar high (red line) and the target was placed an equal distance away (green line).
I got filled at 1 tick off the intended entry.

Trade
Initially, price went up and fluctuated between the entry and stop level. I felt down seeing price go against the trade immediately. However, price did not seem to have the strength to go further.
I went away from the computer to watch television for 15 minutes to avoid being tempted to intefere with the trade.
It was a good choice as i felt calmer. After 15 minutes, i went back to check on the trade.

Exit
The trade hit the target.
Result: 9 ticks

Price had a second bull pause bar and failed reversal. It went down near to the LOY support level before forming a bull inside bar.

On reflection, it was a sound trade and I followed my rules. Writing an ongoing commentry of the price action helps to follow price better. Getting away from the chart was another good move as price went close to the target before forming a bull bar. If I had watched the chart tick by tick, i am not sure if i have the nerves to hold on.

1 thing I missed out was not noticing the LOY support level. During the entry, the LOY level was not visible on the chart. If I had zoomed out first, i would have noticed this level and set a target nearer to the LOY level. Hence before entering the target level, i need to zoom the chart out and check for other possible levels.

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 mrBean888 
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I was reading through some futures.io (formerly BMT) threads and one advice struck me. Focus on one thing and work on improving it.

From earlier trade reviews, i need to work on setting my targets properly.

Hence, for new journal entries, I will dedicate a sub section under Entries to detail the reasoning behind setting a target.
I will also grade the setting of the target level. Factors are:

- Risk-Reward
- Location of the target
- Emotion when setting the target (e.g. calm, doubtful, fear)

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 mrBean888 
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Failed Reversal

Pre entry PA analysis
Earlier, price broke a bull trendline and formed lower pivot highs and lows. Price then formed a bull inside bar which became a TTR. I decided to place a short below the TTR low due to 2 reasons:
1) There was a prior steep downswing and the TTR is below the ema. Price could go down further for a 3rd leg especially to reach the LOY level.
2) The TTR downside breakout is a L2 bar

Entry, Risk, Target
The risk is within limits. Risk is 13 ticks. The stop is placed at the high of the bull inside bar near the TTR high (red line)
The target is 19 ticks. It is placed at a prior pivot low level. (green line)

My grade for setting the target level is a B (meaning ok-ish)
I decided the target level in a calm state of mind, placed it at a reasonable level (a prior support) and the reward is bigger than the risk.

I entered on an OCO stop sell order.

Trade

Initially price went down but only reached 9 ticks before pushing back up to the TTR. I felt anxious but writing a commentry of my emotions, price action and what-if scenarios helped to keep myself calm and i did not have the urge to intefere with the trade. By the third bar, price has gone back up to the TTR area and i was looking to scratch the trade, according to one of my exit rules.

Exit

I scratched the trade with a 1 tick loss.
Result: -1 tick

On review, the trade was a BE one and getting out early turned out to be correct as price formed a 2 legged upswing and hit the stop level. I did 2 new things in order to better follow the price action and maintain a calm state of mind.
The first is to visualise taking a loss. Before i looked at the chart, i closed my eyes, visualised a trade which hit the stop loss level. Then i visualised myself staying calm, journaling the trade to learn lessons from it and not get into revenge trading mode. I also told myself that losses are just a cost of doing business in trading and are tuition fees charged by the market.

The second is to write down my emotional temperature besides writing down the price action. It helps to become more self aware of what i am feeling at that moment. (attached below)

Both these practices are useful and I intend to continue doing them.

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 mrBean888 
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1st trade:
PA analysis
Price was in a trading range and was having a 2nd leg down towards the lower range extreme. I decided to take a long because a bull reversal bar with clear price rejection had formed near the lower range. This area was also where price had bounced off, forming prior pivot lows.

Entry
I entered on an OCO stop buy order with risk at 14 ticks and target at 15 ticks. The target was placed at a prior pivot high level. The stop was placed at the signal bar low.

Trade
Price went down initially before shooting up 9 ticks. After this, it went down and the next bar went down decisively, reaching near the stop price. I got nervous and shifted the stop down from the signal bar low to 2 ticks below the range extreme. Price continued downwards and hit the adjusted stop.

Exit and post trade PA
Price hit the stop.
Result: -19 ticks
After hitting the stop, price formed a bull reversal bar at the new range low.

2nd trade:
PA analysis
Price formed 2 bull reversal bars at the range low and I decided to take a long position as price was at the range low and there were 2 bull reversal bars with clear price rejections off the low.

Entry
I entered on an OCO stop buy order with risk at 12 ticks and target at 14 ticks. The target was placed at the prior pivot high. The stop was placed at the signal bar low.

Trade
On the entry bar, price went up a bit and the second bar was a bear inside bar. I was still calm as this could be just the end of the first leg. On the third bar, price continued upwards and managed to exceed 9 ticks. However, price seemed to encounter resistance and i decided to manually exit according to my time based exit rule. Besides price could be in a larger bear channel and this could be the formation of a lower pivot high.

Exit and post trade PA
Price hit the manually adjusted target.
Result: 9 ticks
Price went down decisively 2 bars later to the trading range low and broke down from it.

On review, I broke a fundamental rule by shifting the stop when price approached the stop. Breaking this rule also exceeded my risk limit, hence breaking another rule. The interfered stop was hit anyway. I need to be on guard against the fear of being wrong and taking a loss. It is easier said than done in real time. Trade management is still my weakness and i need to work on it.

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 mrBean888 
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PA analysis
I saw a steep bull bar which rose sharply and then price formed a series of sideways,overlapping bars with lower highs and higher lows. This looked like a bull flag. I decided to take a long as price formed a sharp first leg upmove, the flag pattern looked good and it was above the ema. There could be a second leg to go.

Entry
I entered on an OCO stop buy order. The entry was placed near the flag high. The stop was placed at the flag low and the target was placed at a prior pivot high during yesterday's session. The risk is 14 ticks and the target is 14 ticks.

Trade
During the trade, i left the chart and let the trade run its course. I engaged myself with web surfing and did not intefere with the trade. My emotions were calm.

Exit and post trade PA
Price hit the target limit.
Result: 14 ticks

The bull flag breakout continued, had a pause bar and continued higher to form a new high of the day. It then had a steady down swing back to the ema.

On review, the trade was good. The price action analysis was sound and trade management was ok. Strangely, not continuously looking at the chart helped to control my emotions and the urge to make trades for the sake of it. This is worth exploring and i have to find a balance between following price action and being detached enough not to let emotions take over.

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 mrBean888 
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July 2013 was not a good trading month. My trades were not consistent. One trade would be a winner and the next would be a loser. Also, the losers were greater than the winners in general.

In July, I also broke some fundamental rules and my reading of price action was lax. My mistakes are:

1) Entering trades without looking at the context and being lax in assessing price action
I traded TTRs and made trades which reached technical or S/R levels without considering the prior context.
e.g. 11 july, Post #30

2) Shifting stops to avoid taking a loss
-> 29 july, Post #34

3) Manually interfering with the target level because of prior losing trades
-> 8 july, Post #27
-> 9 july, Post #28

My confidence and emotions are also affected due to the inconsistent performance and reading of price action, which played a part in the above mistakes too.

For this August, I will focus on being more stringent in my assessment of price action. I will also focus on improving trade and risk management. My action tasks for the upcoming month are:
  • Focus on trends, trend reversals and channels only
  • Drop fading of trading ranges which have irregular pivots
  • Create a flow chart on assessing price action and make sure the flow is complete before considering an entry
  • Shift the stop to 2 ticks beyond the entry bar once the entry bar closes to reduce risk

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 mrBean888 
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PA analysis
Price had a steep downswing followed by a TTR. The TTR had bars with noticable lower tails where buyers pushed price up. There was also a small higher low within the TTR. Price broke out from the TTR, broke the trendline, prior pivot high and the ema. Price then formed a Low 2 bear bar at the ema followed by a bull inside bar. I decided to take a long as this followed a trendline break and ema, higher pivot high and low, a bull inside bar and a potential failed Low 2 bar.

Entry
I entered using an OCO stop buy order. The stop was placed at the Low 2 bear bar low and the target was placed at the recent pivot high. (horizontal light green line for the target and horizontal red line for the stop).

Trade
During the trade, price meandered around the entry price and I felt a bit of anxiety but stayed away from interfering with the trade. When the entry bar closed, I shifted the stop to 2 ticks below the entry bar low in order to reduce the risk.

Exit and post trade PA
There was no follow through in either direction after the entry and after 2 bars had closed, i decided to scrap the trade.
Result: 3 ticks
After exiting, price continued up and hit the original target. It then formed a small trading range.

On review, price action analysis was ok and i followed the PA analysis flow chart. I also reduced risk by shifting the stop to beyond the entry bar. The exit was premature on hindsight, although i also followed the rules. There may need to be more adjustment to the time based exit rule depending on future results.

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 mrBean888 
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PA analysis
Price was moving up slowly with lots of overlap and tails. There were higher highs and lows. An upward channel can be drawn. From the second pivot high, price had a 2 legged down move to the lower channel line. Then a bull inside bar with tails formed. The next bar was a bull bar with a close at the high. I decided to take a long because there was a bull inside bar and a bounce up from the lower channel line, price had a prior 2 legged move down and the channel was trending up.

Entry
I entered using an OCO stop buy order. The stop was placed at the prior bull bar low (red line) and the target was at a prior pivot high (green line). The risk was 14 ticks and the target was 12 ticks.

Trade
I interfered with the trade. As price was moving up, i lowered the target by 5 ticks. Reasons being i had to sleep early and wanted to exit early and another is the desire to take profits quick. Regardless, i did not manage the trade well and let emotions take over.

Exit and post trade PA
Price hit the adjusted target level.
Result: 7 ticks (0.5R)
Price went up, formed a lower pivot high and fell through the lower bull channel line to make a new low.

On review,the entry was ok but staying patient and disciplined is still something I need to work on. It is the size of the wins over the losses which is just as important as the win rate. Currently, I think my mindset is still geared more towards the win rate while giving the winning size less importance.

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 mrBean888 
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Price action
Price was on a steady uptrend before the open. It formed a new high and had 2 legs down to the ema. Price then decisively broke the ema, bull trendline and the prior higher pivot low. It formed a lower low and moved back up in 2 legs to the prior high for a test of the extreme. It was also a possible double top. There was an intra bar test of the extreme before sellers came in to push price down to form a bear bar with an upper tail.

Entry
I entered on an OCO stop sell order. The stop was placed at the bear signal bar high (red line) and the target was placed an equal distance away and also at a minor prior pivot low (green line). The target and risk are both 17 ticks. The entry was 1 tick past the bear bar low (aqua line)

Trade management
I managed the trade well. When the entry bar closed, i lowered the stop to 3 ticks above the entry bar high and reduced the risk to 12 ticks. The target remained unchanged. Along the way, as price meandered and went up a bit for a pause, i had some thoughts of shifting the stop to BE or shifting the target or just to exit with a quick profit but I held on. A few factors helped me to maintain a clear head. One is to surf the Internet and the other is chatting with my wife while taking an occassional glance at the chart. Finally, I was also determined to make good on my earlier pledges to let the trade run its course and to make a good trade.

Exit and Post trade price action
The target was hit.
Result: 17 ticks (1.4R)
Price formed a tight trading range around the ema.

On review, I finally had a trade where all the boxes were checked. The PA analysis was ok, the risk-reward ratio was met, trade management and emotions were fine. The next step is to build on this and continue to make such good trades. Earlier on, I had also decided to remove the arbitary "exit if price does not hit the stop or target after 2 bars" rule.

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 mrBean888 
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I took 2 trades today. Both are trendline break, test and reversal setups.

trade 1:
Price action
Earlier on, price was in a downtrend. It formed a tight trading range at a bottom and had a 2 legged strong upmove which broke the major bear trendline. It then had a strong downmove which had an undershoot test of the extreme. A bull inside bar then a bull reversal bar formed. I decided to take a long as price had a prior trendline break, could form a double bottom reversal and had bull inside and reversal bars in succession.

Entry
I entered using an OCO stop buy order. The stop was placed at the bull reversal bar low and the target was meant to be placed the same distance away. However, I made a mistake when typing in the stop price. Instead of 17 ticks, i mistyped and entered it at 9 ticks away instead. Hence the risk is 9 ticks and target is 17 ticks.

Trade management
I did not realise that i had entered the stop target incorrectly. During the trade, i surfed the net and did not look at the chart. My emotions were calm and i did not interfere with the trade. It was only when the trade was exited did i realise that i had made a mistake during the entry.

Exit and post trade PA
The incorrectly entered stop was hit.
Result: -9 ticks (-0.53R)
Price went down for a second leg and had a test of the bottom.

trade 2:
Price action
After a trendline break and a strong downswing for an undershoot test of the extreme (7 bear bars in a row), price went up a bit and had a bear bar down for a possible second leg and another test of the extreme. A bull reversal bar with its low off the prior extreme formed. I decided to take a long as it was a second leg down for the test, a possible double or mini triple bottom and a bull reversal bar with its low off the prior extreme.

Entry
I entered using an OCO stop buy order. The risk was placed at the signal bar low (red line) and the target was placed the same distance away (green line). Both risk and reward are 19 ticks away.

Trade management
I managed the trade well. I surfed the web, was calm and did not intefere with the trade.

Exit and post trade PA
The target was hit.
Result: 19 ticks (1R)
Price formed a gentle bull channel with small higher highs and lows.

On review, the second trade was a good one and I aim to continue doing the same. For the first trade, i made a mistake during the trade entry, submitted the trade and did not look at the chart anymore. Luckily, the stop was entered wrongly as the original stop would had been hit anyway. However, I still have to check the stop and target levels on the chart once the trade is submitted to ensure they are correct.
Also, regarding PA for the first trade, the downswing test of the extreme was strong with 7 bear bars in a row in 1 single leg. It may be safer to wait for a 2nd entry or after the end of a second leg.

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 tom1presto 
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mrBean,

Thanks for posting your analysis and trade setups. Since a trend line break appears to be key entry set up for you, you might want to review a tick chart and see how you would do on paper or the SIM. They are often a little clearer much less bar overlap at a lower time frame (like a 133 tick chart).

The challenge is that it's a trade off. For example, if you look at a 2000 tick ES chart, certain patterns, like trend channels become much clearer. If you look at the 250 tick ES, it looks totally different - basically up and down swings in a very tight channel. If you just took every trend line break in the direction of the 20 EMA in a 133 tick YM chart, you would probably have more smaller trades but probably more winners.

Personally, I find it very hard to watch a 5 min chart - too much can happen in a 5 min span. If you are trading price action, I think tick charts do a much better job showing the ebb and flow of price action. Even though you might be looking at a "faster" tick chart like a 133 tick (I am sure others have a recommended YM tick setting), you can still pick and choose your entry but seeing the patterns in a tick chart lets you fine tune your entries.

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 mrBean888 
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Price action
Earlier on price had a steep upswing with 4 consecutive strong bull bars. It then had a staggered pullback with alternating trend bars. Price reached the the HOY level and formed a bull inside bar. I decided to take a long as the HOY level could act as a support level, there was a bull inside bar and the pullback had bull bars in between. i.e. it was not too bearish

Entry
I entered using an OCO stop buy order. The stop (red line) was placed at the bull inside bar low and the target (green line) was placed a same distance away and was also near a minor pivot high. Both risk and reward are 10 ticks.

Trade management
After confirming that the entry was entered correctly, I looked away from the chart and listened to some music. I did not intefere with the trade and felt calm.

Exit
The stop was hit.
Result: -10 ticks

Price had a small bounce up from the ema and formed a bull doji bar with an upper tail next. Price then formed a strong bear bar down.

On review, the trade selection was not a good one. I think it is both a lack of discipline and poor PA analysis. I did not follow my setup flowchart which is to take 2 legged pullbacks to the ema. Also, this pullback is so-so at best. Although there were bull bars in the pullback, the high 1 bar is not clear and decisive. Pullbacks continue to be my weak point and I need to have conviction to follow the setup flow chart and not be tempted to take subpar pullbacks.

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 mrBean888 
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tom1presto View Post
mrBean,

Thanks for posting your analysis and trade setups. Since a trend line break appears to be key entry set up for you, you might want to review a tick chart and see how you would do on paper or the SIM. They are often a little clearer much less bar overlap at a lower time frame (like a 133 tick chart).

The challenge is that it's a trade off. For example, if you look at a 2000 tick ES chart, certain patterns, like trend channels become much clearer. If you look at the 250 tick ES, it looks totally different - basically up and down swings in a very tight channel. If you just took every trend line break in the direction of the 20 EMA in a 133 tick YM chart, you would probably have more smaller trades but probably more winners.

Personally, I find it very hard to watch a 5 min chart - too much can happen in a 5 min span. If you are trading price action, I think tick charts do a much better job showing the ebb and flow of price action. Even though you might be looking at a "faster" tick chart like a 133 tick (I am sure others have a recommended YM tick setting), you can still pick and choose your entry but seeing the patterns in a tick chart lets you fine tune your entries.

Thanks for the suggestion tom. I am not familiar with the tick chart but will definitely take a look at it and try it in Sim. The 5 min chart can have lots of overlapping bars at times and staying disciplined can be a challenge!

I am currently reading Bob Volman's book on forex price action and he uses tick charts for his trading too.

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 tom1presto 
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yes, that's a good book. There are definitely some similarities between the overlapping price action in the YM and in the FOREX.

You might also take a look at this thread



Lots of examples drawing and trading off trend channels

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 mrBean888 
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tom1presto View Post
yes, that's a good book. There are definitely some similarities between the overlapping price action in the YM and in the FOREX.

You might also take a look at this thread



Lots of examples drawing and trading off trend channels

This is a great journal where there are lots of things to learn from.

Thanks for introducing the thread!

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 mrBean888 
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I have decided to drop 2 legged pullback setups. Good 2 legged pullbacks to the ema seem to occur rarely on the YM and when a pullback looks to be forming, I often find it hard to stay on the sidelines if it is not a M2B or M2S. Inevitably, i fall to temptation once in a while and take a pullback trade which ends up failing, which just happened today. Then, my emotions and confidence are affected again.

I dont know why pullbacks are such an archilles heel for me when they look so clear and easy on hindsight and when it seems highly recommended by trading authors. My record with pullbacks in a trend is poor.

Anyway, i will just focus on trading channels and trendline breaks. Fewer setups hopefully leads to a better focus and mastery of the setups. I will also observe price behaviours like breakout pullbacks or wedge formations.

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 mrBean888 
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price action
Price had a strong bull breakout bar followed a small flag. A second breakout formed and price formed a tight trading range after the breakout. I drew parallel channel lines around the flag, second breakout and tight trading range. I decided to take a long because price had a bull bar bounce off the lower channel line, the lows of the bars are getting higher while the highs are about the same. An ascending triangle could also be forming.

entry
I took a stop long OCO order. The stop was placed at the signal bar low and the target was placed a similar distance away. The risk is 8 ticks and the reward is 10 ticks. The entry bar is marked by an aqua coloured arrow.

trade management
I looked at other applications after entering the trade. I did not manually interfere with the target level and did not feel the urge to do so. However, i also forgot to shift the stop to 2-3 ticks under the entry bar after the entry bar closed.

exit and post trade pa
Price hit the stop
Result: -8 ticks

Price proceeded to go down and formed 5 bear bars in a row.

On review, I did not make a good trade. Firstly, the signal bar has both upper and lower tails and is not a convincing bull reversal bar. Secondly, i forgot to shift the stop to reduce my risk after the entry bar has closed. The channel line was also not the best although after a strong initial upswing followed by price inching up, there could be another upmove.

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 mrBean888 
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price action
Price had a failed earlier bull flag breakout and ascending triangle setup and broke down with 5 bear bars in a row. After the break down, a bull bar formed and price was back near the bull flag breakout level. A bear reversal bar formed and I decided to take a short. The bear reversal bar attempted to go back up the break-down level but failed, forming an upper tail. Also, after 5 bear bars in a row, there could be a second leg down.

entry
I entered using an OCO stop sell order. The stop was placed at the bear reversal signal bar high and the target was placed at the low of the prior bull bar pullback. The risk is 4 ticks and the reward is 6 ticks.

trade management
I did not interfere with the target level of the trade and was calm when the trade played out.

exit
Price hit the target.
Result: 6 ticks

Price formed a TTR around the ema after the exit.

On review, the trade is ok. I followed my rules and goals. The RR ratio is alright and I did not interfere with the target level. I have to follow up and continue to take only good trades.

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 torroray 
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mrBean888 View Post
price action
Price had a strong bull breakout bar followed a small flag. A second breakout formed and price formed a tight trading range after the breakout. I drew parallel channel lines around the flag, second breakout and tight trading range. I decided to take a long because price had a bull bar bounce off the lower channel line, the lows of the bars are getting higher while the highs are about the same. An ascending triangle could also be forming.

entry
I took a stop long OCO order. The stop was placed at the signal bar low and the target was placed a similar distance away. The risk is 8 ticks and the reward is 10 ticks. The entry bar is marked by an aqua coloured arrow.

trade management
I looked at other applications after entering the trade. I did not manually interfere with the target level and did not feel the urge to do so. However, i also forgot to shift the stop to 2-3 ticks under the entry bar after the entry bar closed.

exit and post trade pa
Price hit the stop
Result: -8 ticks

Price proceeded to go down and formed 5 bear bars in a row.

On review, I did not make a good trade. Firstly, the signal bar has both upper and lower tails and is not a convincing bull reversal bar. Secondly, i forgot to shift the stop to reduce my risk after the entry bar has closed. The channel line was also not the best although after a strong initial upswing followed by price inching up, there could be another upmove.


Hi,

Do you know the reason for the spike?

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 tflanner 
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mrBean888 View Post
price action
Price had a strong bull breakout bar followed a small flag. A second breakout formed and price formed a tight trading range after the breakout. I drew parallel channel lines around the flag, second breakout and tight trading range. I decided to take a long because price had a bull bar bounce off the lower channel line, the lows of the bars are getting higher while the highs are about the same. An ascending triangle could also be forming.

entry
I took a stop long OCO order. The stop was placed at the signal bar low and the target was placed a similar distance away. The risk is 8 ticks and the reward is 10 ticks. The entry bar is marked by an aqua coloured arrow.

trade management
I looked at other applications after entering the trade. I did not manually interfere with the target level and did not feel the urge to do so. However, i also forgot to shift the stop to 2-3 ticks under the entry bar after the entry bar closed.

exit and post trade pa
Price hit the stop
Result: -8 ticks

Price proceeded to go down and formed 5 bear bars in a row.

On review, I did not make a good trade. Firstly, the signal bar has both upper and lower tails and is not a convincing bull reversal bar. Secondly, i forgot to shift the stop to reduce my risk after the entry bar has closed. The channel line was also not the best although after a strong initial upswing followed by price inching up, there could be another upmove.

I am not a Price Action trader...but I did purchase Al Brooks videos...anyway, here is my thoughts.

I am not sure what the prices were on the chart or the time of the trade. I wonder if you were buying near yesterdays day session high (15488?). Also, there are a fair amount of doji bars that indicate indecision prior to your entry. Finally, I recall Al saying he likes to buy after "bull trend bars" and sell after "bear trend bars. It appears u should have bought after the large bull trend bar.

Today was quiet in YM ahead of very significant news tomorrow. It was a BLSH type day.

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 mrBean888 
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price action
Price was in a steady downtrend with lower highs and lows. It then formed a clear first leg pullback consisting of 2 bull bars, then a clear bear bar with a lower low (L1). A second clear pullback of 2 bull bars followed and is near the ema and bear trendline. A bear reversal bar cum inside bar formed just below the ema. I decided to take a short because there has been a clear 2 legged pullback to the ema and trendline and the signal bar looks convincing.

entry
I took an OCO stop entry order. The stop was placed at the signal bar high and the target was at a prior pivot low. The risk is 7 ticks and the reward is 6 ticks.

trade management
I let the trade run its course and did not feel the urge to interfere with the trade. I felt a bit uncomfortable when price was close to the prior low but started to retract upwards. Nonetheless, i did not interfere with the target level and looked at other web sites to keep myself distracted.

exit and post trade PA
Price hit the target
Result: 6 ticks

Price continued its downtrend and made a pair of lower lows and lower highs

On review, this trade was ok. I followed my rules and took a trade which had a good looking setup and signal bar. In my earlier post, I had mentioned that i would be dropping pullbacks from the setups i look out for. However, this setup just looks so obvious. It simply pops up on the chart.
Hence, for pullbacks, i will only take those which are identifiable on first glance on the chart. If i have to focus and make an effort to see it, it probably isn't a good pullback and i will stay on the sidelines. One thing I will look at is that the first and second leg pullbacks have to be obvious with a clear with trend bar separating the 2 legs.

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 mrBean888 
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torroray View Post
Hi,

Do you know the reason for the spike?

hi torroray,

The spike bar is the first bar of the market open. It is common for the bars at the market open to be larger than those before the open.

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 mrBean888 
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tflanner View Post
I am not a Price Action trader...but I did purchase Al Brooks videos...anyway, here is my thoughts.

I am not sure what the prices were on the chart or the time of the trade. I wonder if you were buying near yesterdays day session high (15488?). Also, there are a fair amount of doji bars that indicate indecision prior to your entry. Finally, I recall Al saying he likes to buy after "bull trend bars" and sell after "bear trend bars. It appears u should have bought after the large bull trend bar.

Today was quiet in YM ahead of very significant news tomorrow. It was a BLSH type day.

Hi flanner,

I agree that i should have bought after the first strong bull bar. There could be a follow through after such a first strong upmove. On reflection, i should not have bought when price was grinding up with lots of dojos. It was not after a first strong upmove and the channel was not convincing. I think i was trying to see things when actually there wasn't.

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 torroray 
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mrBean888 View Post
hi torroray,

The spike bar is the first bar of the market open. It is common for the bars at the market open to be larger than those before the open.

Was there an event that influence the size of that bar?

I dont see them today when market open.

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 tflanner 
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According to Al Brooks the "High or Low of the day" occurs in the first 5 minutes of the day 20% of the time (for the indices). Hence, whenever i see a strong Trend Bar in the first 5 minutes (on the 5 min. chart) I always respect it....thinking that it could be the extreme of the day.

It goes along with Linda Raschke (Taylor Trading Method...which i am just starting to study) that the market has a tendecy to trade High to Low or Low to High.

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 mrBean888 
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I am continuing with the journal after a few months off. I made a switch to euro-usd spot forex, opened an account with CMC markets and continued to trade on the 5 min timeframe using price action analysis.

So far, 2014 has not been good. My trades in January have been erratic and ended up break-even for the month. February got off to a very bad start. I made 5 trades today and lost all 5. Reasons are exiting trades rashly, hence affecting my rational thought, not being disciplined in following my criteria in accessing PA setups and pure gambling.

Worse is, these bad trades I made caused my account to fall from being in the green to break even. All the good work done in the last few months was gone in a couple of hours.
Worst of all, I ended up quarrelling with my wife moments before i wrote this post. Feeling lousy and down because of the bad trades was a big factor in the quarrel.

Anyway, the disastrous trades below:

Trade 1 was a L3 pullback to the ema. I entered on a market sell order below the prior bear bar low and got a reasonable entry. Price went down a bit before going back up to form a bull outside bar. I simply panicked and manually got out of the trade even though the stop was not reached. I lost 4.8 pips. This was the start of the downward spiral.

I then made a second trade (Trade 2) on the same bar which I exited the first trade. I "saw" a bull breakout from a bear channel based on a weak reasoning of there being 3 pushes down already and the prior pullback consisted of 4 consecutive bull bars. Price went down and hit the stop. 10 pips was lost.

When price went down to hit the stop for the 2nd trade, I felt foolish and demoralized. I then saw the price may have broken a bear trendline (not shown) and was now testing the prior low to form a potential double bottom. I took a long trade. (Trade 3). Price went up a bit but formed a lower high and went down to form a lower low, hitting the stop in the process. Another 10 pips was lost.

I was feeling idiotic and was in revenge trading and "chasing price" mode now. I felt foolish that i was too focused on trading and seeing reversals when the downtrend was actually a strong one. I should be trading pullbacks all along. After a lower low, there were a few sideways doji bars below the ema. I saw a potential L1 setup after a prior bear doji bar with an upper tail. I took a short. A sideways bear bar followed and price made a sudden big bull gap up. Yet another 10 pips lost.

Now, I was feeling hopeless and couldnt care less about losing money. After the big bull breakout, price formed a series of bull inside bars (could be a bull flag). My mind said enough is enough but my emotions overruled and i still placed a buy trade anyway in the hope of a bull breakout. Needless to say, price fell back to cover the gap and the gamble was a 12.8 pips loser.

Result for the day: -48 pips (5 trades)

Typing this made me feel a bit better though overall i still felt lousy and am low on confidence now.

On review, my biggest problem was lack of discipline and control and poor reading of price action. I think i am looking at too many aspects of price action. Being a jack of all trades while being a master of none. Overtrading is a problem which has been creeping up since Jan 2014.

My review and to-do till it becomes a habit now is as follows:

- Take only ONE good trade for a trading session
- FOCUS on pullback and flags/triangle breakout setups only. Ignore the rest.
- Trade smaller size. Half of what I currently do now.

Ignore reversals for nowbecause from my trade reviews, my success rate for reversals is not good and it is a very tempting setup to take. My journal records (handwritten) show that I took more reversal trades than other setups and lost the most money on reversals.

Must do better.

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 tturner86 
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mrBean888 View Post
I am continuing with the journal after a few months off. I made a switch to euro-usd spot forex, opened an account with CMC markets and continued to trade on the 5 min timeframe using price action analysis.

So far, 2014 has not been good. My trades in January have been erratic and ended up break-even for the month. February got off to a very bad start. I made 5 trades today and lost all 5. Reasons are exiting trades rashly, hence affecting my rational thought, not being disciplined in following my criteria in accessing PA setups and pure gambling.

Worse is, these bad trades I made caused my account to fall from being in the green to break even. All the good work done in the last few months was gone in a couple of hours.
Worst of all, I ended up quarrelling with my wife moments before i wrote this post. Feeling lousy and down because of the bad trades was a big factor in the quarrel.

Anyway, the disastrous trades below:

Trade 1 was a L3 pullback to the ema. I entered on a market sell order below the prior bear bar low and got a reasonable entry. Price went down a bit before going back up to form a bull outside bar. I simply panicked and manually got out of the trade even though the stop was not reached. I lost 4.8 pips. This was the start of the downward spiral.

I then made a second trade (Trade 2) on the same bar which I exited the first trade. I "saw" a bull breakout from a bear channel based on a weak reasoning of there being 3 pushes down already and the prior pullback consisted of 4 consecutive bull bars. Price went down and hit the stop. 10 pips was lost.

When price went down to hit the stop for the 2nd trade, I felt foolish and demoralized. I then saw the price may have broken a bear trendline (not shown) and was now testing the prior low to form a potential double bottom. I took a long trade. (Trade 3). Price went up a bit but formed a lower high and went down to form a lower low, hitting the stop in the process. Another 10 pips was lost.

I was feeling idiotic and was in revenge trading and "chasing price" mode now. I felt foolish that i was too focused on trading and seeing reversals when the downtrend was actually a strong one. I should be trading pullbacks all along. After a lower low, there were a few sideways doji bars below the ema. I saw a potential L1 setup after a prior bear doji bar with an upper tail. I took a short. A sideways bear bar followed and price made a sudden big bull gap up. Yet another 10 pips lost.

Now, I was feeling hopeless and couldnt care less about losing money. After the big bull breakout, price formed a series of bull inside bars (could be a bull flag). My mind said enough is enough but my emotions overruled and i still placed a buy trade anyway in the hope of a bull breakout. Needless to say, price fell back to cover the gap and the gamble was a 12.8 pips loser.

Result for the day: -48 pips (5 trades)

Typing this made me feel a bit better though overall i still felt lousy and am low on confidence now.

On review, my biggest problem was lack of discipline and control and poor reading of price action. I think i am looking at too many aspects of price action. Being a jack of all trades while being a master of none. Overtrading is a problem which has been creeping up since Jan 2014.

My review and to-do till it becomes a habit now is as follows:

- Take only ONE good trade for a trading session
- FOCUS on pullback and flags/triangle breakout setups only. Ignore the rest.
- Trade smaller size. Half of what I currently do now.

Ignore reversals for nowbecause from my trade reviews, my success rate for reversals is not good and it is a very tempting setup to take. My journal records (handwritten) show that I took more reversal trades than other setups and lost the most money on reversals.

Must do better.

Interesting to see this from the other side, I was trading M6E and noticed similar price action.

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 mrBean888 
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After the disastrous trading session yesterday, my aim was to start afresh and to focus on making 1 good trade and to look at only pullback and flag/triangle setups if there are any.

When I took a first look at the market, it was in the midst of a possible trend reversal from a bull to bear. The pullbacks were long and bearish, a lower high formed and the bear trend line was broken in the midst of a strong bear pullback. After an upswing from a support level to form a lower high slightly above the ema, it was followed by a bear bar which was also a L2 bar. I saw it as a pullback and looked to enter short.

I entered on a market sell order (yellow arrow in the attached chart). RR ratio was initially 1:1

Trade management was not good. I was still influenced by the losing trades yesterday and adjusted the target level until it was less than half the risk. Price was likely to be in a downtrend and could form a lower low but i was worried about losing and shifted the target up to the prior low, in case price found support there and bounced up strongly.

In the end, price hit the target and went down more. The original target would have been hit if i had not meddled.

Result: 4 pips

On review, today was an improvement. I focused only on pullback or flag/triangle breakout setups and was prepared to sit on the sidelines if price was behaving otherwise. I was patient, waited for the proper setup to appear and did not jump in even though earlier on, price was moving in the anticipated direction while i was still waiting on the sidelines.

Trade management wise, the RR of the trade was poor. I should not have meddled with the target level. The RR level has to be 1 or better.

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 tturner86 
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mrBean888 View Post
After the disastrous trading session yesterday, my aim was to start afresh and to focus on making 1 good trade and to look at only pullback and flag/triangle setups if there are any.

When I took a first look at the market, it was in the midst of a possible trend reversal from a bull to bear. The pullbacks were long and bearish, a lower high formed and the bear trend line was broken in the midst of a strong bear pullback. After an upswing from a support level to form a lower high slightly above the ema, it was followed by a bear bar which was also a L2 bar. I saw it as a pullback and looked to enter short.

I entered on a market sell order (yellow arrow in the attached chart). RR ratio was initially 1:1

Trade management was not good. I was still influenced by the losing trades yesterday and adjusted the target level until it was less than half the risk. Price was likely to be in a downtrend and could form a lower low but i was worried about losing and shifted the target up to the prior low, in case price found support there and bounced up strongly.

In the end, price hit the target and went down more. The original target would have been hit if i had not meddled.

Result: 4 pips

On review, today was an improvement. I focused only on pullback or flag/triangle breakout setups and was prepared to sit on the sidelines if price was behaving otherwise. I was patient, waited for the proper setup to appear and did not jump in even though earlier on, price was moving in the anticipated direction while i was still waiting on the sidelines.

Trade management wise, the RR of the trade was poor. I should not have meddled with the target level. The RR level has to be 1 or better.

I find your journal interesting, as I trade the E7/6E/M6E, alot of the price action is similar to the Forex pair. I just posted my trades in my journal.

After the first bull rally, I really looked to enter on each bear leg in the bear channel that was forming. I took my first trade not for sure what was really going to happen, but after it was successful, I was able to enter on each bear leg.

Patience and looking for the correct entry is a great key to successful trading. Also learning to trust your read and not move profit targets is another. I try to only move a profit target if price confirms that my target is unobtainable.

Also on my notes for the trade, I note where 50% profit is, so that way if price comes within a few ticks or pips of my target an waivers I may look to lock in that 50% target with my stop. I also do this in preparation for trading multiple contracts, so I can scalp one out at 50% and bring the second to B/E to allow it to swing for the original target.

I will be following your journal!

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 mrBean888 
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I took a look at some spot fx charts on the daily timeframe and spotted a possible setup on the usd-chf pair. Price was in a downtrend, broke the bear trend line and formed what could be a double top bear flag. A lower high formed and it could be a bear pullback in a downtrend.

As usual, there is a possibility that the setup could fail. The risks are that price had broken the bear trend line and there is a higher low after that. The factors that support a continuation of the bear trend are the possible formation of a double top bear flag after the trend line break, the trend line break is not large compared to the length of the trend and there is a lower high which could be a double top pullback.

On the higher time frame weekly chart, there was a series of lower highs and same lows and it could be the formation of a descending triangle. The trend line break was not obvious on the weekly chart.

I placed a stop sell order at 1 pip below the bear signal bar after the lower high.
E: 0.89595
S: 0.90812 (1 pip above the lower high, 121 points)
T: 0.88327 (prior extreme low, 128 points)

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 mrBean888 
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Price was in a bull channel after 2 legs down. The bull channel was moving up in a gentler slope compared to the downswing. Price then formed 2 lower highs within the channel and I looked for a downward breakout of the bull channel.

I placed a stop sell order at 1 pip below the prior low. The target was placed at the extreme low and the stop was placed at a recent prior high. RR is slightly more than 1.

Trade management was ok. Price went down initially but it turned out to be a breakout failure. Price inched upwards back to the channel high in a series of 6 consecutive bull bars. With such strong bull momentum, I decided that the trade was invalid and exited before the stop was hit. This saved a few pips of losses.

Emotionally wise, I was calm when analysing price action and when the trade was moving against me. I did not feel the urge to jump into the trade and did not feel the need to take more trades when the trade turned out to be a losing one.

Result is -6 pips.

On review, I am not sure if a downside breakout of a bull channel following a downswing is a good probability setup or not. I have seen price make a steep or 2 legged down move, then forms a gentler bull channel then has a convincing bear breakout of the bull channel. On this instance, it failed. I will do more observations on such setups and trade smaller size while seeing such price action behaviour form.

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 mrBean888 
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Price had a strong spike down followed by a horizontal trading range. When i saw the chart, price had reached the trading range top and was starting to fall from the range top. Bear bars were more numerous than bull bars. A small lower high formed after buyers tried to push price up. But price fell quickly in a bear bar to erase the gains made by the lower high. After seeing a strong spike down, a range which could be a bear flag and price falling from the range top, I looked to sell.

I entered on a stop sell order. The entry was 1 pip below the small prior low leading to the lower high. The stop was placed at the top of the lower high while the target was placed at the range low. RR is slightly less than 1.

Trade management was ok. Price soon made a strong bear breakout and when I saw price hesitate near the target and start to move up, I did not interfere with the trade by manually exiting or adjusting the target. I reasoned that the bear breakout bar was strong and there could be more follow through.

Result is 6 pips.

Emotionally wise, I felt calm both during price action analysis, placing the trade and managing the trade.

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 mrBean888 
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Price was in an uptrend and had a strong bear bar which broke the bull trend line. A bear channel formed below the ema. Within the channel, price formed lower highs with similar lows. It could also be a small descending triangle. When a L2 bear bar formed below the ema, I looked to sell.

I entered using a stop sell order with the entry at 1 pip below the L2 bar low. The stop was placed at 1 pip above the L2 bear bar high, which was the signal bar. The target was placed at the low of the bull reversal bar with a long lower tail. RR is 1.

Trade management was mixed. I shifted the stop a bit higher to a couple of more pips above the signal bar high. Price went down initially but started to inch back up. When price moved closer to the stop, I manually exited. The trade was losing its validity and the break of bear trend line and bear channel could be just a double bottom bull flag in an uptrend.

Result is -8 pips.

On review, I learnt 2 things. One is that when seeing a setup form, I need to scroll the chart back in time to spot for past support or resistance obstacles first. In this chart, the low of the bull reversal bar and the bear channel both bounced off a major support level some time back.

The second one is that forex is a trending market and it is wise to keep an eye out for trend continuation setups despite a trend line break. Trend line breaks may turn out to be double bottom bull flags in an uptrend or double top bear flags in a downtrend.

Emotionally wise, I was calm when analysing price, entering the order and watching the trade. The loss did not affect my emotions much.

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 mrBean888 
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Price was in an uptrend, had a trend line break, a bull reversal bar with a long lower tail and formed a bear channel below the ema. Price went back up from the bull reversal bar low and prior strong support level (in the past). Price then broke out from the bull channel with 3 strong bull bars. 2 relatively small bear bars formed. This could be a breakout pullback from a double bottom bull flag in an uptrend. I scrolled back in time to check for strong resistance levels. There were none and prior price movement was an uptrend. The risk was that there is a bull trend line break already. However, with a strong bull reversal bar after the trend line break and a strong breakout from the bear channel, there could be a second leg up and a test of the extreme high.

I placed a stop buy order with an entry 1 pip above the final bull breakout bar before the pullback. The stop was placed a couple of pips below the second bear bar pullback. The target was placed at the prior extreme high. RR is 1.

Trade management was ok. I did not meddle with the stop or target levels and let the trade play itself out.

Result is 8 pips.

Emotionally wise, I was calm during the trade and when placing the order. When analysing price, I had mixed feelings though. I was very uncertain whether it was a trend reversal or a double bottom bull flag. I went with the trend continuation setup eventually due to the strong break of the bear channel and also because of how the second bear pullback bar formed. It went a few pips below the first bear inside bar but did not have follow through and the next bar was a bull bar which went up with conviction fairly quickly after it opened. The bull reversal bar with a long lower tail was also another clue that bears could not push price down.

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 mrBean888 
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Price was in a long downtrend. It formed a double bottom and then price started to move up steadily, breaking the bear trend line, ema and prior lower high in the process. Price reached a prior high and formed a bear reversal bar with its high off the prior high level. I saw it as a possible double top at resistance and a test of the prior extreme low following the trend line break. I looked to enter short for a bear trend continuation.

I made a stop sell order with the entry 1 pip below the bear reversal bar. The stop was placed at the bear reversal bar high and the target was set at a prior low level. RR is slightly more than 1.

Trade management was ok. Price moved down a bit before pushing up in a strong bull bar. There was no bear trend continuation strength and the bull reversal continued. As I saw price move up and start to reach the stop, I manually exited and saved a few pips.

Result is -6 pips.

Reviewing the trade, I made a couple of mistakes and need to learn from them. The first is that i broke my rule and entered even though the bar after the bear reversal bar is a bull bar. If I had stuck to my rule of the signal bar being a trend bar in the intended direction, I would not have taken this trade.

Another is that I still lack the skill to differentiate between a with-trend correction which breaks the trend line and a trend reversal. I had made a number of losing trades while mistakening a correction for a reversal and vice versa. In this case and a few previous losing trades, I made a mistake of entering too early before price asserts itself as continuing or reversing the trend. Other clues in this case are the strong bullish trend line break with many average sized bull bars and the small bodied bear reversal bar compared to the prior bull bars.

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 mrBean888 
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Price had a strong bullish 2 legged up move. A sideways move then formed. The sideways move stayed above the ema and did not display bearish strength. A follow through from the strong bull upmove could occur. A bear bar closed below the ema and slightly below a prior low but there was no bear follow through. 2 reversal bars formed followed by a bull bar. I looked to buy above the bull bar.

I entered on a stop buy order with the entry 1 pip above the bull signal bar. The stop was placed at the low of the bull signal bar. The target was placed at the prior extreme high during the upswing. RR is slightly less than 1.

My trade management was poor. After the entry, price continued to move sideways. After 9 bars, as price reached the top of the sideways move, my emotions got the better of me and I interfered with the trade. I manually exited the trade.

Result is 1 pip.
Price went down a bit, formed a bull reversal bar and then shot up. The target would have been hit had I stayed in the trade.

Emotionally wise, I was calm when analysing price action and when entering the order. When in the trade, I started to get uncomfortable as price moved aimlessly for more than half an hour. When price reached the top of the sideways move, my emotions got the better of me and I manually exited.

On reflection, the sideways move remained above the ema and i should stay in the trade. For future trades, to reduce my anxiety if the trade is lingering for a long time, I could move the stop to reduce the risk.

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 mrBean888 
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Number of trades: 6
Wins: 2
Loses: 3
BE: 1
Net pips: -5

What I did not do well:
-> Did not check for past support or resistance levels as potential obstacles
-> Differentiating between a trend reversal and with trend correction
-> Entering a trade without a good signal bar

What I did well:
-> Analysed price action calmly before placing an order
-> Entered trades in a timely manner
-> Decisive in exiting losing trades which are losing their validity

What I aim to work on:
-> Enter a trade only with a good signal bar which is a trend bar in the intended direction (except for flag breakouts)
-> Wait for clearer correction or reversal price action to form after a trend line break rather than anticipating one (also consider the number and type of the bars, the strength of the trend line break, chart patterns, length and strength of the prior trend)
-> Scroll back to check for major support and resistance levels when analysing price

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 mrBean888 
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Price was in a downtrend and had lower highs and same lows. As price formed a lower high and started to fall, I looked for a short opportunity. The bear signal bar was also a L2 bar in a pullback.

I entered on a sell market order. The entry was set at 1 pip below the signal bar low. The stop was placed at the high of the most recent lower high and the target was placed at the prior low. The prior low was also a major support level when I scrolled back in time to check for potential obstacles. RR is slightly less than 1.

Trade management was ok. I did not interfere with the trade and let the trade run its course.
Result is 5 pips.

Emotionally, I was calm when analysing price, entering the order and monitoring the trade.

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 mrBean888 
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Price had 2 steep bullish legs up and was above the ema. The prior price movement was sideways. There was then a bearish pullback to the ema consisting of 5 consecutive bear bars. Price remained above the ema. Due to the bearish pullback, I decided to wait for a 2nd entry long. Price moved up from the ema, then formed a bear bar, followed by a bull bar up. This could be the second entry and i looked for a long on the next bar.

I placed a stop buy order with the entry 1 pip above the high of the signal bar. The stop was placed 1 pip below the prior pivot low and the target was placed at the prior extreme high. RR is 1.

Trade management was ok. I did not interfere with the stop or target level. Price formed a lower high and started to inch down. The trade was in negative territory most of the time. I manually exited as price approached the stop.

Result is -9 pips.

Emotionally, I was calm when analysing price action. I was a little anxious when entering the order because the signal bar closed on its high and the entry is 1 pip above the signal bar high. Nonetheless, the order was sent in a timely manner and I got in at the intended price.

On review, I had encountered such price action before and the results were mixed at best. The characteristics are:
1) price had 2 or 3 steep bull upswings and is above the ema
2) the pullback is bearish with consecutive bear bars back to the ema and no H1 bar in between
3) it is approaching noon time

Sometimes, like in this case, price forms a lower high and moves sideways. At other times, it goes up more and hits the prior extreme. In other cases, it drifts downwards. The common outcome is a transition into a sideways move. In the meantime, i will stay on the sidelines if price forms such a behaviour and observe the outcome. Perhaps, this is not such a good probablity setup after all.

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 mrBean888 
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Price was in a long downtrend and a major bear trend line can be drawn connecting the major lower highs. After a slightly higher low which consisted of a smaller double bottom, price rose up, broke the ema and reached the major bear trend line. I watched for a major trend line break. There was none and after a small penetration of the trend line, price had a sideways move then formed a bearish bar down to form a lower high. A small pullback to the ema formed before a bear bar down. I looked to enter on short after the bear signal bar for a possible swing daytrade down.

I made a sell stop order with the entry at 1 pip below the bear signal bar low. The stop was at the signal bar high and the target was placed at somewhere near the extreme low. RR is a bit more than 2.

Trade management was ok. I did not interfere with the target. Price drifted sideways, had a bull bar up which came close to the stop before falling back into sideways mode. The sideways movement was below the ema. I decided to go to sleep while leaving the stop and target levels intact, reasoning that price was in a long downtrend and should continue to head down. Anyway, the stop was intact in case price went up.

I manually exited the next day when price went down but did not come close to the target. It moved sideways instead. Result is 10 pips.

Emotionally, I was calm when analysing the price, entering the order and watching price for the first several bars.

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 mrBean888 
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I made 3 trades last night and my performance was mixed. Price analysis was ok but while in the trades, I was a bundle of nerves.

Trade 1 (blue arrows):

I zoomed the chart out and saw that price was having lower highs and similar lows. A bear trend line can be drawn connecting the lower highs. When I looked at the chart, price had reached the bear trend line and had formed a lower high. Price was falling, had mostly bear bars and the prior bear bar just closed below a high during the prior upswing. Additionally, the upswing consisted of 3 pushes up to the bear trend line and it looked like a wedge. I looked for a short.

I entered on a market sell order at 1 pip below the bear signal bar. The stop was set at the high of the signal bar and the target was set at the prior extreme low. RR is 2.

My trade management was poor. I did not feel confident in the trade. After moving down a bit, price stalled and moved sideways-up. I was worried about taking a loss and interfered with the trade. Result is 1 pip.

Trade 2 (white arrows):

Price made a decisive bull move up which went above the ema. However, the sellers came in to push price back to near the low of the bar, forming a doji with a long upper tail with a close below the ema. I looked to enter short on the possibility of a failed bull breakout.

I entered on a sell stop order with an entry 1 pip below the doji bar low. The stop was placed at the doji bar high and the target was placed at the prior extreme low. RR is around 2.

Trade management was not good also. The entry bar became a bull pause bar and my confidence in the trade was shaken. There was then a bear bar down. A bull doji bar formed next and again, I was worried about taking a loss and manually closed the trade. Result is 2 pips.

Trade 3 (orange arrows):

After a bear bar down, price formed 2 sideways bull doji bars below the ema. This could be a bear flag. Price made a move up but went down from the ema to form a bear bar. I looked for a short as a bear flag below the ema could be forming. Price also had lower highs and lows and was mostly below the ema.

I entered on a stop sell order with the entry 1 pip below the flag low. The stop was placed at the high of the bear bar down and the target was placed at the extreme low. RR is between 1 to 2.

Trade management was improved but not good enough. I recognised that price was heading down and I should hold onto to the trade longer instead of bailing out too early. Although the bull bars in between made me feel uneasy, I stayed on because they could be pullbacks in a downtrend. Still, after seeing price move sideways a bit, i manually exited the trade.
Result is 4 pips.

Emotionally, I was a bundle of nerves while in the 3 trades. I reacted emotionally to price movements and was overcome by the fear of taking a loss. As a result, price analysis was largely correct but the result was poorer than what it could be.

On reflection, I did fine when it came to analysing price action during the session. I was calm when looking at the chart. Where I did poorly was during the trade. My fear of loss was strong and I exited prematurely thrice. Instead of a single trade with a larger profit, I made 3 trades and settled for less. I will work at keeping the discipline to stay in the trade and only manually exit when price is reaching the stop loss level.

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 tturner86 
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I can tell your nerves by the amount of trades.

What was causing you to be nervous during the trade? Was it price action? Fear of loss? I would use this as an opportunity for you to identify and work in yourself on what was causing the fear.

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 mrBean888 
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I can tell your nerves by the amount of trades.

What was causing you to be nervous during the trade? Was it price action? Fear of loss? I would use this as an opportunity for you to identify and work in yourself on what was causing the fear.

It was primarily fear of loss. During each of these trades, although price did not come close to the stop, it did not go down towards the target quickly. Instead, it went down a bit, had a pullback, then went down a bit and so on.

I think the fear comes from needing more experience in interpreting price action, the expectation of price heading down towards the target quickly which it did not and the fear of being wrong.

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 mrBean888 
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Number of trades: 6
Wins: 5
Loses: 1
Net pips: 13

What I did not do well:
-> identifying a good probability uptrend pullback setup
-> feared being wrong and taking a loss leading potential winning trades being cut short

What I did well:
-> analysed price action calmly before deciding on an entry
-> made timely entries
-> followed up on last week's action items (checking for past support and resistance levels and waiting for a good signal bar in the direction of the intended entry)

What I aim to work on:
-> manually exit only when the trade is obviously losing its validity and is nearing the stop
-> avoid trading this sort of pullback setup: 2-3 legs of steep bull pushes followed by multiple consecutive bear bars to the ema

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 tturner86 
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It was primarily fear of loss. During each of these trades, although price did not come close to the stop, it did not go down towards the target quickly. Instead, it went down a bit, had a pullback, then went down a bit and so on.

I think the fear comes from needing more experience in interpreting price action, the expectation of price heading down towards the target quickly which it did not and the fear of being wrong.

I agree, with experience comes the ability to determine buying and selling pressure more. In the past I have been scared out of positions because the next bar moved against me and I closed the position only to have that bar doji or close in my original direction and then the trade would have ended up positive.

Now, I only try to pay attention to the open and close of the bar, what happens in the middle is noise and I try to ignore. (with in respect to the context, after the close of a bar I will look at tails and the shapes of the bars to help me determine who is in control of the bar.)

Look into reading buying and selling pressure, and who owns the market (bulls/bears). That way it is easier to tell if a pullback is a pullback or a reversal.

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vertiqa20
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You made need to backtest, backtest and backtest more to gain more confidence in your system. You may also want to establish trade management rules in your backtesting, so you will know exactly what you are going to do based on market movement. Things such as when to move/trail your stop, what your target should be on your trades/ your risk on trades, risk ratio..which is going to be most profitable for your system. You may also want to record the MAE on your trades to come up with your stops. Also record time in and out of profitable trades ( some may last 2 mins, some may last 30min etc.) Knowing all these things will help with your confidence and ability to let the trade work. Trading is about EXECUTION, that should be your main concern, not the winning and losing. It's all PROBABILITY.... you don't know when you are going to have that winning or losing position, your JOB is to EXECUTE correctly.

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 mrBean888 
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I made 3 trades the night before. I did not do well for the first 2 trades and did fairly ok for the third. Overall, the result was slightly negative.

Trade 1 (blue arrows)
When i zoomed the chart out, price was having lower lows and a bear trend line can be drawn connecting the lower highs. Price was rising in a bull channel and was falling from the bear trend line after forming a lower high. Price had 4 consecutive bear bars and was below the ema and prior low. I saw that a bear bar closed at its low followed by a bull doji bar which closed near its low.

I entered using a sell stop order and entered at 1 pip below the bear bar low. The stop was placed at the prior extreme high and the target was placed at a prior low in the bull channel. RR is between 1 and 2.

Trade management was ok. When price started to move up quickly, I realised that i had sold at a low and made a mistake of selling at a bull channel low. The bullish bar was followed by a bull bar which was a bear bar at first but became a bull bar after buyers pushed price up decisively. Price could move up more and I looked to exit.
Result is -9 pips.

Trade 2 (white arrows)
After mistakenly ignoring the bull channel in the first trade, I drew bull channel lines and also drew a strong resistance line after zooming the chart out. The resistance line was near the channel top too. After price went to the channel top and had a breakout, it fell decisively after briefing breaching the resistance level and channel top. It was also a channel overshoot. A clear bear reversal bar cum outside bar formed. I looked to enter on a short.

I placed a stop sell order and entered at 1 pip below the bear signal bar. The stop was placed 1 pip above the bear signal bar high and the target was placed at a prior low in the bull channel. RR is 2.

My trade management was mixed. I am not sure if it is good or not. On one hand, price moved against the trade decisively and was getting close to the stop so I exited manually. On the other hand, price did not hit the stop and would have hit the target and had a larger profit had i stayed on.
Result is -5 pips.

Trade 3 (orange arrows)
After the bull bar which i exited previously, a bear inside bar formed followed by a bear bar down. A slightly lower high below the resistance level and a lower high within the bull channel formed. Price was also at the major bear trend line which connected the lower highs. I looked to sell.

I placed a sell stop order at 1 pip below the signal bar low. The stop was placed at 1 pip above the lower high and the target was placed at the channel low. RR is 1.

Trade management was ok. I let the trade do its thing and exited at the channel low. Result is 10 pips.

Emotionally, for the trading session, it was better than the previous nerve wrecking session. However, I still felt discomfort while watching the trade. The good thing was that i was calm despite the first 2 losses and did not revenge trade. I still analysed price calmly and had reasonable reasons to enter.

On review, I made some mistakes. For the first trade, I did not follow my rules and did not enter after a good signal bar. I placed the stop sell order after the bull doji bar, thinking that there could be more to go after a weak bull bar. I would have saved 9 pips had i followed this simple rule.

Another mistake is to ignore the bull channel. I focused only on the major trend line while neglecting to draw the bull channel lines. When I saw price falling, it was already at the channel low and because i didnt think that it was important to draw the channel lines, i shorted at the bull channel low. It was lazy of me not to draw the channel lines and i paid for it.
I also noticed that when i am not good at trading channel breakouts. I need to watch out for channel overshoot -> strong reversal or a lower high or higher low within a channel first.

For the second trade, i'm still not sure if letting price do its thing or manually exiting to save a few pips is better. I think for now, i'll still go with manually exiting a losing trade which is closing in on the stop and see which is better.

For future trades, I will work on maintaining the discipline to only enter after a good signal bar. I will also take note of notable channels, trend lines and support/resistance lines and not to cherry pick one and ignore the rest. Additionally, i will look out for lower high or higher low within a channel, 3 pushes or a channel overshoot and reversal before trading channel breakouts. Otherwise, i will just trade in between the channel lines.

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 mrBean888 
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In a zoomed out view, price had a downtrend with lower highs and lows then an upside correction which broke the bear trend line (not drawn) and transited into a trading range. As price went back to the range high, it did so in a bull channel (not drawn). Price at the range high also formed a lower high within the bull channel and a potential double top with a prior high. Overall, the correction looked to peter out after a long downtrend and price could head lower.

Price fell from the range high, bull channel high and potential double top and broke below the range low. Price then formed a bull doji bar which was a strong bull bar but fell off its high to form an upper tail. Another bull doji inside bar followed. This could be a bear flag and breakout pullback. The next bar started off as a bull bar but became a bear bar and price broke below the flag lines. I looked for a short.

I entered using a sell market order and entered when price broke below the flag line. The stop was placed 1 pip above the flag high and the target was placed at a major support level (lowest horizontal yellow line). RR is 1.

Trade management was ok. Price headed down quickly on the entry bar. Price almost reached the target level and started to stall. I stayed on in the trade because price was in the anticipated direction and there was no reason to interfere.
Result is 7 pips. Duration is 2 bars.

On review, I made a good trade in a long time. I followed my to-do action items and stayed calm when analysing price action, entering and managing the trade.

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 mrBean888 
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Price was heading down with lower highs and lows. A bear trend line can be drawn connecting the highs. Price had a bullish upswing followed by a TTR hovering just below a strong resistance line. I saw that price did not fall from the resistance line and thought that it could be a pause before pushing higher. Price was also not near the falling bear trend line. I looked for a long above the TTR.

I placed a stop order buy trade at 1 pip above the TTR high. The stop was placed at the TTR low and the target was placed at where the falling bear trend line would be. RR is 1.

Trade management is ok. I did not interfere with the trade.
Result is -9 pips. Duration is 4 bars.

Emotionally, i was calm overall. When the trade hit the stop, i felt disappointed but the negative feelings were not strong and i did not have the desire to enter trades to make up for the loss.

On review, my price action analysis was not good in this case. I underestimated the significance of the overall trend and the presence of a strong resistance line. Just because price did not fall straight away after reaching resistance does not mean that there will be a break out soon. I ought to take into account the overall trend and the importance of support/resistance lines. This is also not a setup that i am familiar or confident in.

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 mrBean888 
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Price looked to be in a trading range which was gently going down with lower highs and lows. A bear trend line can be drawn connecting the lower highs. A support line can also be drawn connecting the lower lows. Price was heading up from a low. The price bars were bullish with higher highs and lows. Halfway through the range, buyers looked to be more urgent and the slope of the lows increased. A wedge shape was becoming clear. With price approaching the bear trend line, a horizontal resistance line with a prior high, a wedge shape forming with 3 pushes up and being far above the ema, i looked for a sell opportunity.
A bear bar formed at the top but i didnt enter because the prior upmove was strong and it was better to wait for a 2nd entry. A second bear bar formed after the bull bar before it failed to push upward.

I entered on a market sell order at 1 pip below the bear bar. The stop was placed at the prior wedge high and the target was placed at a support level. RR is 1.

Trade management was ok. As the trade proceeded, price appeared to stall a few times but i controlled my discomfort and held on in the trade because it was not a losing one.
Result is 9 pips. Duration is 8 bars.

Emotionally, i was calm overall when analysing price action, making the entry and when in the trade. There was some discomfort but it was not strong.

On review, this was a fairly good trade. There were quite a number of price action reasons for entry and my execution of the trade entry and management was fine.

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 mrBean888 
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Trades: 6
Wins: 3
Loses: 3
Net pips: 3

What did I not do well:
-> Did not enter based on a good signal bar
-> Drew only trend lines of the overall larger trend and did not draw channel lines for more recent price action
-> Underestimated the presence of a strong resistance line and the overall larger trend line

What I did well:
-> Analysed price action calmly
-> Had more than 2 reasons for each entry
-> Was patient in waiting for setups
-> Made timely entries

What I aim to work on
-> Enter only if there is a good signal bar (second time i made this mistake)
-> Pay attention to overall and recent trend lines and channels
-> Don't enter long near a strong resistance line and overall longer bear trend line

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 tturner86 
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mrBean888 View Post
Trades: 6
Wins: 3
Loses: 3
Net pips: 3

What did I not do well:
-> Did not enter based on a good signal bar
-> Drew only trend lines of the overall larger trend and did not draw channel lines for more recent price action
-> Underestimated the presence of a strong resistance line and the overall larger trend line

What I did well:
-> Analysed price action calmly
-> Had more than 2 reasons for each entry
-> Was patient in waiting for setups
-> Made timely entries

What I aim to work on
-> Enter only if there is a good signal bar (second time i made this mistake)
-> Pay attention to overall and recent trend lines and channels
-> Don't enter long near a strong resistance line and overall longer bear trend line

Yes, Yes, Yes. Buy at Support and Sell at Resistance. I try not to go long at a resistance level, until price breaks it and then it becomes support. (Reverse for shorts).

Also you should mark and note S/R levels (remember they are more zones then fine lines.)

Good job and analyzing your actions, the first step to change is recognizing the issue.

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 mrBean888 
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I made 2 trades the previous session. The net result was -2 pips.

Trade 1
When the chart is zoomed out, price was having lower highs and higher lows. A symmetrical triangle can be drawn. When I saw the chart, price was at the support level of the triangle. A bull inside bar had formed and i placed a buy order at 1 pip above the bull inside bar high.

I entered using a stop buy order with the entry 1 pip above the signal bar high. The stop was placed at the prior triangle low and the target was placed at the triangle high. RR is 2.

My trade management was alright. I did not interfere with the trade and felt calm while in the trade even though it was a losing one. Result is -12 pips. Duration is 6 bars.

Trade 2
I looked at another zoomed out chart and saw that price was in a long trading range with the same lows and lower highs. A descending triangle could be forming. It was not a textbook looking descending triangle but clear resistance and support lines can be drawn. Price had a small breakout from the resistance line but fell back and closed below the resistance line. It was also a possible double top. A series of flat bear dojis followed. I looked for a possible fall back to the support level.

I entered using a stop sell order. The entry was 1 pip below the higher prior low. The stop was placed at the high of the lower pivot high. The target was placed at the support level. RR is 1.

Trade management was ok. Price was violatile during the entry bar and intially went against the trade. However, i held on because the price was not close to the stop yet. I also did not interfere with the trade. It was the right decision as price went down 2 bars later and hit the target.
Result is 10 pips.

Emotionally, on both trades, I was calm overall when analysing price action and managing the trade. However, after the second trade, i was tempted to put in another trade to at least end breakeven for the session. Actually, i put in a 3rd trade and it did go 2 pips in the green but i exited at BE. Reasons for exiting were that it was lunch time and trading was slow, my motivation for entry was primarily due to wanting to gain more pips even though the price action made sense and i was tired and should be going to bed soon.

On review, for the first trade, i did not look at the details clearly enough. When price hit the support level, there was a strong bull bar up followed by 3 bears bars down. This formed a lower high which i missed. After i entered long, price formed another lower high before breaking downwards.

I also thought about how to reduce risk. 1 to-do action is to set the stop at 1 pip beyond the signal bar except for flag or triangle breakouts. This applies especially to pullbacks and support/resistance trades. The second is to continue to monitor the trade and to exit the trade when it is losing and nearing the stop. My recent losses hit thier stops and i could have reduced the losses by manually exiting before the stop is hit.

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 mrBean888 
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I did not do well this trading session. Instead of taking 1 trade and having it hit the target, i took 2 trades and ended up negative.

Trade 1
Price looked to be in an uptrend and is mostly above the ema. A wedge shape can be drawn and price started to turn flat and lose momentum at the top. However, price has been in an upmove and i waited for a break of the wedge before deciding what to do. Price had a steep bear bar which broke through the wedge and ema. I looked for a short after the bar closed

My entry was poor. I entered on a sell market order but entered the order details too slowly. By the time i finished entering the order details, price was some distance below the low of the signal bar. Nonetheless, i did not want to miss an opportunity and entered the trade. I got in at a lousier price than preferred. RR is 2.

My trade management was poor too. I regretted entering the order slowly and getting in at a poor price and it affected my emotions. After seeing price stall in the entry bar, i lost confidence in the trade even more. When the next bar was a bull bar, i gave in to my fears and exited manually at a loss, thinking that price would hit the stop and it was a lousy trade anyway.

Result is -6 pips. In the end, the stop was not hit and price went down and hit the original target.

Trade 2
Price had a sideways move and a ii pattern below the ema. This could be a bear flag after the steep bear bar down. A bear reversal bar with its high off the ema formed and i looked for a short below the flag and the bear reversal bar.

I entered on a market sell order. This time, i sent the order in a timely manner. The target was placed at the flag high and the target was placed at the low of a prior low. RR is 1.

My trade management was poor. I was affected by the mistakes of the first trade and was not confident in this trade too. After seeing a small bull bar, i imagined the worst and decided to exit because i was afraid of taking another loss.

Result is 1 pip.

Emotionally, i was not in a good state. I made a mistake of entering late and did not recover from it. I made more mistakes and felt worse each time. My main problem was the fear of taking a loss and led to potentially winning trades becoming a loss or breakeven.

On reflection, my problem is in terms of execution. I need to pay attention and improve my trade execution. One thing to be serious and quick when entering the order and send the order in a timely manner. If i miss the entry by a lot, just forget it. I should not rush to chase the price.
The next thing is to not get affected by price movements. I had already cut off trades with a loss which ended up as winners had i stayed on several times. To prevent this from happening, i will set the stop and targets then go away from the computer and let the trade do its thing. I decided to stop the practise of manually exiting potentially losing trades. The trades' RR has to be 1 or better.

I have decided to stop trading for this week, review my past weekly reviews, internalize the to-do lists and come up with a checklist which i will paste on my laptop. I need to focus on execution and emotions, which have been my weakness so far.

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 mrBean888 
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Trades: 4
Wins: 1
BE: 1
Losses: 2
Net pips: -7

What i did not do well:
-> Cut short trades which turned out to be winners eventually
-> Did not pay enough attention to detail when analysing a triangle setup
-> Chased the price after i had missed the entry point

What i did well:
-> Analysed price action calmly
-> Took note of support/resistance, channel and trend lines when analysing price action

What i aim to work on:
-> Be fast when placing orders
-> Let it go if price moves too far beyond the entry point. Don't chase the price
-> Go away from the computer after entering the trade. Let the trade do its thing
-> Write a trading checklist on trade execution, print it and paste it on my laptop

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 mrBean888 
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On the zoomed out chart, price had a bear downswing, a long sideways move then a bear channel. Price was overall down.
Price was in a bear channel, had lower highs and lows and was mostly below the ema. Price formed a higher low within the channel and bounced up to the channel top. Then there was a small TTR at the channel top. There was a L1 then L2 bear bar within the TTR. With price at the channel top and below the ema, i looked for a short. Even though there was a higher low within the channel, price may go down and the TTR was not bullish too.

I entered on a stop sell order. The entry was 1 pip below the signal bar. The stop was placed at the TTR high and the target was placed at the prior low. RR is slightly more than 1.

Trade management was ok. I left the chart after entering the trade. Since there was a stop and target in place, i did not worry so much about the outcome.
Eventually, price formed a higher low, went up to hit the stop and immediately went down to reach the original target. Result is -8 pips.

Emotionally, i was calm when analysing price action, placing the order and while in the trade.

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 mrBean888 
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Was the setup familiar? Yes

When i looked at the chart, price was having lower highs and lows and was below the ema. Earlier on, there was a break of a major bull trend line after a bull spike and channel. With price in a downtrend, i looked for a short setup. It came when a L2 bar occured after a bearish L1 bar which had its high fall off the ema.

Was the signal bar a good one? Yes

The signal bars were a bearish L1 and a bear bar followed by the L2 entry bar

Was the entry timely? Yes

I placed a stop sell order at 1 pip below the prior bar and got in at the intended price.

Was the RR 1 or more? No

The distance to the stop was bigger than the distance to the target. The stop was placed at the high of the L1 bar while the target was placed at the channel low. The main reason why i did not place a larger target was a lack of confidence in the trade. I was in a small slump recently.

Did i manage the trade well? It was mixed

Price evolved into a TTR. The TTR remained below the ema and the chances are that there will be a downward breakout. However, i lost my confidence and nerve as the trade went on without follow through in either direction. I decided to manually exit when price was nearing the TTR low.
Result is 1 pip.

After i exited, the next bar had a bear breakout.

Were my thoughts clear and emotions stable? Yes

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 mrBean888 
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Was the setup familiar? Somewhat

Price had a big up and big down. A small bull channel cum wedge followed. Price reached the ema from below and there were 3 pushes up within the wedge. The big down was very bearish and with a wedge and weak bull channel forming at the ema, I looked for a sell setup.

Was the signal bar a good one? Yes

The signal bar was a bear bar at the channel low. It closed below the channel and the low of the bar before it.

Was the entry timely? Yes

I entered on a market sell order and when price went below the low of the signal bar, i sent the order.

Was RR one or better? Yes

RR was 1. I placed the target a prior low which was also the start of the wedge and bull channel (first target, according to Brooks). The stop was placed at a prior high of the bull channel.

Did I manage the trade well? Yes

I jotted down the price action of the entry bar and made observations. I left the stop and target levels alone and let the trade do its thing.
Result is 6 pips.

After hitting the target, price continued its breakout and found support at a major support level

Were my thoughts clear and emotions stable? Yes

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 mrBean888 
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Was the setup familiar? Somewhat

Price was moving up from a lower low and had a 3 legged upmove near to the major resistance level. Price fell off and had a TTR, including a failed bear breakout of the TTR. A strong bull breakout of the resistance level followed and there was further bull follow through. By then, price was way above the ema, had 3 pushes up and was at the top of a steep upmove. I looked for a potential pullback down.

Was the signal bar good? Yes

At the top, price formed a bear reversal bar.

Was the entry timely? Yes

I entered using a sell market order and got in when price fell below the signal bar low.

Was RR > 1? No

It was slightly less than 1. The stop was placed at the high of the signal bar and the target was placed at the resistance turned support level. I placed the target there because price broke out decisively and had follow through from the major resistance level and price could have a breakout pullback rather than a breakout failure.

Was trade management good? It was mixed

It was ok. I manually exited the trade because price reached just 1 pip off the target and was unable to go further despite 2 attempts. I decided to exit because it was likely to become a support level and price could bounce back after the test of the breakout level. On one hand, i interfered in the trade. On the other, it turned out to be the correct decision because price turned up and would have hit the stop.
Result is 3 pips.

Were my thoughts clear and emotions steady? Yes

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 mrBean888 
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Was the setup familiar? Somewhat

Price was in a large bull channel with 2 sided trading. From the zoomed out view, price had a large steep drop, a sideways move then this bull channel, which could be a bear flag. Price was falling from the channel top. The top had a mini double top and a second entry short. There were also 2 bear bars down already. I looked for a sell entry for a fall back to the channel low.

Was there a good signal bar? Yes

The signal bar was a bear bar which closed at its low.

Was the entry timely? Mixed

When the signal bar closed, i was still halfway entering the order. I managed to get in as the entry bar started to form but got in a couple of pips lower than the intended price.

Was RR > 1? Yes, RR is 1.

Was trade management good? Mixed

Price soon went against the trade and was closing in on the stop. I manually exited. The decision turned out to be half correct because price went on to hit the original stop and went a bit up. However, it eventually went down and hit the original target.
Result is -7 pips

Was my thoughts clear and emotions stable? Yes

Despite price hitting the stop level and then going in the intended direction, I probably would still stick to placing the stop 1 pip beyond the signal bar. Will observe and see if the distance is appropriate in the longer term.

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 mrBean888 
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Was the setup familiar? Somewhat

Price was in a bull channel with 2 sided trading. It reached the top of the bull channel, fell a bit and formed a TTR a little below the channel high. This could be a lower high within the channel and with 2 sided action so far, there could be a bear breakout of the TTR. The TTR also had a small double top within it. I looked for an opportunity to short.

Was the signal bar good? Yes

It was a bear bar.

Was the entry timely? Yes

I placed a sell stop order under the low of the TTR and it got hit when price broke down

Was RR > 1? Initially yes

The stop was placed at the high of the TTR and the target was placed at the middle of the big bull channel, at a support level based on a prior low

Was trade management good? Not really

I let the trade do its thing and did not manually exit. However, i tinkered with the target. I shifted it up a bit and let the RR become less than 1. I shifted the target because price had a breakout pullback after the TTR bear breakout. I was worried about price not being able to go down much and shifted the target up a bit. Another reason was that i feared seeing potential profits disappear in case the target was too far away.

In the end, price hit the target and went down further. Result is 5 pips.

Were my thoughts clear and emotions calm? Mixed

My emotions were stable when analysing price action and when placing the order. While in the trade, i started to lose confidence in the trade and my fear and stress started to increase, which led to me shifting the target higher.

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 mrBean888 
Singapore
 
Experience: Beginner
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Was the setup familiar? No

Although the setup was not familiar, this trade was not a gamble. I had read about micro channels in Brook's book and decided to trade this for the first time. The risk was small too. Price had a bear spike and channel move. There were 2 pushes down in the channel before price moved up to the top of the channel and steadily broke out of the bear channel. There were lots of bull bars up and the lows and highs were trending higher. A micro bull channel above the ema can be drawn. When price touched the channel low and moved up, i looked for a long.

Was the signal bar good? No

The signal bar was a bear doji with an upper tail. However, it was near the channel low and remained above the ema.

Was the entry timely? Yes

I entered using a buy market order. The stop was placed 1 pip below the entry bar low and the target was placed at the micro trend line high.

Was RR >= 1? Yes

Risk and reward are 4 pips.

Did I manage the trade well? Yes

Once in the trade with the stop and target set, i left the chart and let the trade do its thing. I did not interfere with the trade.
Result is 3 pips.

Were my thoughts clear and emotions calm? Yes

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 mrBean888 
Singapore
 
Experience: Beginner
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Trading: Forex, Stocks
 
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Posts: 176 since Mar 2012
Thanks: 220 given, 139 received

Was the setup familiar? Somewhat

Price had 2 occurances of spike downs then a final flag before price started to correct upwards. A bear channel or wedge shape can be drawn. The correction was bullish and there was little sign of bearishness even at the channel top. I expected a bull breakout and it occured. However, I didnt enter because a resistance level was nearby. I waited to see if there would be a pullback or if the breakout would fail. Price formed 3 bearish bars which ended up back in the channel. It looked like the breakout had failed. A pullback followed. A small bull doji bar with its high off the ema followed by a bear bar was a signal that a second leg down could follow. I looked for a short.

Was the signal bar good? Yes

It was a bear bar after a bull doji bar with its high off the ema. It could also be a 3 bar reversal.

Was the entry timely? Yes

I placed a stop sell order at the prior low and got in at the intended price. The target was placed slightly above the prior low near the channel low and the stop was placed near the channel top.

Was RR >= 1? No

Intially, it was less than 1. The risk was 8 pips while the reward was 4 pips. While in the trade, I decided to lower the risk by shifting it to 1 pip above the signal bar high.

Did I manage the trade well? Yes

I entered the trade with the stop and target levels and did not interfere with the trade. I let the trade play itself out.
Result is 4 pips.

Were my thoughts clear and emotions calm? Yes

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 mrBean888 
Singapore
 
Experience: Beginner
Platform: CMC Markets, Phillips Capital
Trading: Forex, Stocks
 
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Posts: 176 since Mar 2012
Thanks: 220 given, 139 received

Was the setup familiar? Somewhat

Price was in an upmove and above the ema. The upmove looked bullish. However, it was approaching a major resistance line and price became a cluster of bars below the resistance level and above the ema. A wedge shape can also be drawn. When the chart was zoomed out, price direction was more bearish. I looked for resistance to hold and for price to fall below the wedge and the ema.

Was the signal bar good? Yes

It was a bear bar which closed on its low and was below the wedge and ema. It came after a sucession of bear bars down.

Was the entry timely? Yes

I placed a stop sell order with the entry 1 pip below the low of the cluster. The target was place at a prior pivot high as support and the stop was placed at a small pivot high within the cluster and the wedge.

Was RR >= 1? Yes

Both risk and reward were 12 pips.

Did I manage the trade well? Mixed

I did not manually exit the trade and let it run its course. On the other hand, I meddled with the target price by raising it. In the end, the reward was reduced to 8 pips.
Result is 8 pips.

Were my thoughts clear and emotions calm? Mixed

My thoughts and emotions were clear and stable when analysing the chart and entering the order. When in the trade, i did not feel confident about the trade reaching the target and felt a bit of anxiety. I reduced the target to 10, 9 and finally, 8 pips. All the while, the risk remained at 12 pips.

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