Thursday 15th October – Cable – -21 points

October 18, 2009

FX Trading

pw20091015 gbpusd 5 min tact

Ok so here’s my first loss.

Cable had turned its trend the previous day and had channeled north over night.

At point 1 price made what I felt was a last push north.  It broke north of an upwards channel, without convergence on the MACD and with price printing a high test bar at the R2 which was also around the 1.6100 psych level.

When price printed another hi-test bar with a lower high and lower low I decided to go short.  This is one of my TACT trades and I went short at 6085 with a Stop-loss at 6106 (5 points above recent high and 1.6100 round number.)

Initally price pushed short and price went about 5 points positive before turning again and heading back north.  For a moment it looked like it was about to print a double top before rolling over.  But it was not to be.  Price continued pushing north and took me outr at my Stop loss for -21 points.

This was a day on which cable was only going in one direction…straight north.  In hindsight its easy to say I should have gone with the trend but my overall strategy is about looking for a confluence of events.  Price breaking north out of a channel, with divergence, priniting a reversal candle, at a psychological round number, which was also very close to the daily R2 was enough of a confluence of events to take the short trade.

So my first loss…for 21 points.  But overall I’m still up for the week.  Tomorrow is another day.

About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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