So that circled part is where I would have sold, had I been at the computer screen. It's ideally positioned on the higher TF breaking into the orders above previous levels and then showing exhaustion/rejection.
However, I was not at the computer. I looked for a point to re-enter when I was at the computer and saw what was going on, because these things almost always retrace. As you can see I missed out on a whole 5 pips, taking the break of what looked to be the re-test into the traded area above. First and second targets are marked on the chart. This of course means I run a larger risk of being stopped out on any normal retrace that may take us back up so I have a very tight stop and will not accept more than a pip or so of loss. I'd rather that happen and then look for another entry than risk a retrace running into stops that cascade the price upwards.
However if you look at the higher TF you can see this may very well be a 'top' area on the brief re-trace upwards before continuing the higher TF down moves. I'm never very good at holding trades for a long period however so will most likely bottle it and close after seeing profits gain at target 2 or a third chosen place. I much prefer not to watch a trade go up/down/up/down too far in an attempt to catch a bigger move when I could re-enter at each re-trace.
Seeing this 'top' (to my trading style it looks like it) on a Friday however makes me curious as to how it will be handled over the weekend. So at the close of today I will look at how the market played, did it range, did it drop/rocket upwards or what, and then see how the big picture looks and perhaps place a small trade on the side that I can leave going.
Update 1: target 1 comfortably reached.
Update 2: target 2 reached, broken .. looking to see if another entry appears now on this retrace or whether the direction has changed entirely.
Update 3: Sell entry 1.23516
Update 4: target 1 reached, +10 pips .. just about to get stopped for the rest I am guessing for another +1.
Update 5: As expected, stopped out so +11 altogether from that. I am short again from 1.23563 with a tight leash.
Update 6: Target 1 reached again +12, be+1 on the rest, will hold this now until the bottom falls out of this or I get stopped. Probably stopped, I'm shit at long term trades.
Update 7: Ah screw it, I hate leaving trades open they gnaw at my brain, I am closing at 1.23263 that is another +20 and closing my platform for the weekend.
However, I was not at the computer. I looked for a point to re-enter when I was at the computer and saw what was going on, because these things almost always retrace. As you can see I missed out on a whole 5 pips, taking the break of what looked to be the re-test into the traded area above. First and second targets are marked on the chart. This of course means I run a larger risk of being stopped out on any normal retrace that may take us back up so I have a very tight stop and will not accept more than a pip or so of loss. I'd rather that happen and then look for another entry than risk a retrace running into stops that cascade the price upwards.
However if you look at the higher TF you can see this may very well be a 'top' area on the brief re-trace upwards before continuing the higher TF down moves. I'm never very good at holding trades for a long period however so will most likely bottle it and close after seeing profits gain at target 2 or a third chosen place. I much prefer not to watch a trade go up/down/up/down too far in an attempt to catch a bigger move when I could re-enter at each re-trace.
Seeing this 'top' (to my trading style it looks like it) on a Friday however makes me curious as to how it will be handled over the weekend. So at the close of today I will look at how the market played, did it range, did it drop/rocket upwards or what, and then see how the big picture looks and perhaps place a small trade on the side that I can leave going.
Update 1: target 1 comfortably reached.
Update 2: target 2 reached, broken .. looking to see if another entry appears now on this retrace or whether the direction has changed entirely.
Update 3: Sell entry 1.23516
Update 4: target 1 reached, +10 pips .. just about to get stopped for the rest I am guessing for another +1.
Update 5: As expected, stopped out so +11 altogether from that. I am short again from 1.23563 with a tight leash.
Update 6: Target 1 reached again +12, be+1 on the rest, will hold this now until the bottom falls out of this or I get stopped. Probably stopped, I'm shit at long term trades.
Update 7: Ah screw it, I hate leaving trades open they gnaw at my brain, I am closing at 1.23263 that is another +20 and closing my platform for the weekend.