Today I took a long position and gained 16 ticks.
Position: Long
Entry: 4431.75
Exit: 4435.75
Result: +16 Ticks
The Setup
5 Minute
5 Minute chart was forming an ascending wedge. When price dipped below it, looked like a potential Bear Trap.
30 Second
The 30 Second chart shows consolidation below the wedge.
The Idea
This week has been somewhat slow coming up on Easter weekend. My hypothesis was, that if price breaks below here and I see bidding, big buyers might be using this for liquidity which will push price back into the wedge, and ultimately to the top of it.
While there were bidders there, it was not enough to push price back into the wedge. I had the decision of scratching or taking a small profit, or letting it eventually hit my target.
The reason I chose to hold it was that my stop sat below the next level of support at 4423.00.
While I took a good amount of heat, I'm still in the process of sharpening my skills. Therefore, I used it as an opportunity to manage the trade and develop hypotheses as it continued to play out.
Fortunately, price did not break support at 4423.00 and continued up to make new highs. I exited with 16 ticks profit and was done for the day.
The Lesson
In this trade, unlike the trade on 4/12, this idea was wrong. I could have waited for a momentum break back into the wedge instead of anticipating what might happen.
Also, it's important to manage the trade once you put it on to see how it plays out over a longer time frame, especially if the longer time frame is not within what you expected.
Although it didn't work, I knew there was big support, I continued to assess if this trade may develop in my favor.
Links
For data, I use Earn 2 Trades platform, which also gives you the opportunity to become a funded trader through their combine.
I use Optimus Futures for charting and order entry.
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