Sorry I’ve not been posting however I’ve been off sick and also attending a course over the weekend.
Now back trading and here’s a trade from this mornings move on cable.
Price had fallen during the evening but started to rally in the early morning. As we got towards the 7am open I saw that price had rallied back into the 50-62% fib retrace zone. Along with a double top forming on the 5 min and small bars after the last big push bar I was looking for a short opportunity at point 1.
When the 1 min chart showed divergence I went short at 5791. I placed a stop at 5810 above the bar and round number.
At point 2 price had dropped strongly and had hit the ascending triangle. I felt that price could continue but I decided that were price to bounce off the trend line and resume its north bound direction then I would close at entry for break even.
Price did not bounce and dropped further. Because price had dropped so hard and fast within three bars I decided to use a 1 bar reversal stop so my stop was trailed down to 15867 (always 5 points above the last bar). The 1 minute chart was showing divergence and also starting to make higher lows and higher highs so I expects a retrace of some sort. I was literally just pipped out on my trailing stop for a total of +24 points.
– My stop maybe seen as too tight. This was purely because price was collapsing so fast that I felt it might bounce back hard off a support level.
– This would have been another chance to add to my trade. Something that I need to write up very clear rules for.
As always any feedback is appreciated.