(Posted on Monday because of computer issues)
S3S – AUDSD – Mar13
Following the release of the US data at 12.30pm GMT, I have taken the short AUDUSD position. Price was still trading at the same level as at 11am when I originally looked at the setup. So I am comfortable shorting at this point. Chart for this trade? I did draw a chart for this trade, but then managed to delete it – I don’t have the time to draw it a second time. This trade turned into a losing trade. Interestingly I went with an aggressive 25 pip stop for this trade – to me 25 pips is quite a tight stop loss. As price started rallying, I decided to close half the position. I noted the difference between this exit level and the stop loss level, and then added that number of pips to the stop loss for my second position, giving me a stop loss size of around 35-40 pips for the second portion of the trade. This made me feel more comfortable. In any case, the remaining portion was also stopped out.
S3S – GBPUSD – Mar13
Cable printed a bearish pinbar on the 3pm candle, combined with overbought sentiment, which translated into a valid S3 setup. Price rallied a little (10-12 pips) before falling significantly as part of the market’s overall risk-off sentiment. Price came within 8 pips of my target. At this point is started retracing and put in two bullish candles on the 15M chart. I decided to close the trade at this point because I did not want to lose all the pips I had gained. Shortly thereafter, price resumed its downward move and declined past the target level.
I am starting to struggle with posting all the charts on my blog. I appreciate that descriptive postings like this one are not as effective as chart images. I will do my best to keep things as easy to follow as possible.