Ok another Trade at the european open.
Price had rallied overnight and had hit new highs. When price tried to puch north again but failed forming a double top I was ready to short the drop.
I went short at 1.5969 with a stop-loss at 1.5996 above the high and a target of 1.5930 whcih was 5 points in front of the M3. (I find that I like using pivot levels as natural target points.)
Price drops strongly and break the trend line (which pleases me) it then rallies north which I’m expecting as I hope price will ‘kiss the trendline’ before reversing and dropping. In this case it does as it asks and continues down.
However when price forms a low-test reversal bar (or a hammer if you’re talking candles) then I start to become concerned about the change in sentiment and decide to cover my position early for +10 points.
So I appreciate 10 pips is hardly likely to set the world alight however I’m happy as I know I’m building trust in myself. One of the recent trading quotes I’ve heard and taken to heart is:
Trust your system; Trust yourself more.
I’m going to write a post on this particular subject in the near future but for the moment I’ll sit on my 10 points and take what the market offers me.