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


Subscribe to our RSS feed and social profiles to receive updates.

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: