Hello everyone,
Today I have taken a short entry on AUDNZD as it finally broke-out from a sideways range in the direction of the overall main trend. It is a very typical setup that you guys have seen me trading a number of times. Basically the setup is as follows:
In a clear downtrend, price takes a breather and enters a period of congestion signified by that sideways range. As price breaks free of its stagnant mood in the direction of the overall trend a new swing springs off. That’s exactly the swing I was trying to exploit. Unfortunately, as I came back home later in the evening I found out my stoploss being hit for a -27 pip loss. Oh well, it was a good try and in fact I still think the setup is valid so I will re-asses the situation tomorrow morning, right now it’s just too late in the day for me to consider any further entry.
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28 November, 10:31 am
Hi Hector,
if i see it right, the setupchart was the 4 hours timeframe, and the triggerchart should have been the 1 hour timeframe. The trade didnt triggered in the 1 hour timeframe with the Breakout Pullback Confirmation.
What is the reason to take a smaller timeframe, like you did it this time and not the common 1/4 of the Setuptimeframe?
Patrick
28 November, 10:36 am
Yup, in hindsight perhaps I rushed into this trade and I should have taken the entry decision on the right time frames. You see, this is what happens when you get loose with your own trading rules :(
-HECTOR-