Good morning folks, sorry this will come out late, but I’m on third day of fasting so I allowed myself to wake up later and my energy is rather low at the moment as you can probably imagine.
I am out of GBP/JPY original and hourly scale in for -2R total.
I am also out of CAD/JPY for -1R
I am still in CADCHF long 4hour original and 4hour scale in
I am still in AUD/NZD long, I did not take the 1hour scale in since it had barely moved away from the 50EMA. I preferred not to increase my risk exposure
I am still in EUR/CHF short – I didn’t take a 1hour scale in due to margin limits.
I missed NZD/JPY short opportunity – I had disregarded it due to the fact it had spent so long in the zone and removed it form my watchlist. However it had a clear impulse higher before forming the trade entry which was valid in my book.
This is what the position should’ve looked like:
I am however looking to enter in this position through a 1h scale in order (at the low of the current candle)
Anyway enough talking about the past – let’s lookg at my watchlist
Euro Pound is a pair on my watch for two reasons, it’s been moving lower for an extremely long time without any pul backs and we are approaching an interesting weekly area.
However, the daily zone isn’t clear we did not break either a counterzone nor a trend line – instead we broke a structure zone (clear wedge / consolidation pattern)
That does lead to question whenever or not it is valid.
I believe everyone will have to make their mind up about that one on their own – but while talking about the negative side of things I really don’t like taking trades where there’s been so many small candles in a row – I noticed in my backtesting the strike rate wasn’t that good. I didn’t track it but it was an evidence that came to me.
While I was taken out of my original two positions in GBP/JPY (I have no regret taking them, both were valid and according to my trading plan) we are now approaching another zone of interest.
That being said, the exact same case can be made for GBP/JPY as it was made for EUR/GBP this zone did not break a clear trendline or a zone (the counterzone is where I took my two entries). Instead it just broke a structure line from a consolidation / correction pattern.
Knowing that my brain capability wasn’t really in the normal range yesterday I didn’t read much so not going to be sharing a quote from the Laws of Human Nature today