20210610 Trade Review GBPNZD

Play: Trend Con­tin­u­a­tion to Failed Auc­tion (2 trades)

#fin­twit #order­flow #day­trad­ing #trad­in­gre­view #price­ac­tion #chartre­view #GBPNZD

Mar­ket Narrative

Even though a D1 Bull Engulf was formed and there was a slight con­tin­u­a­tion price was trad­ing right into D1/W1 Sup­ply. With a mod­er­ate imbal­ance below val­ue, with­in range, the idea was strength­ened for a pos­si­ble tran­si­tion from H4 Phase 3 to 4 as H4 closed deep­er with­in demand and final­ly took it out dur­ing IB. 

IB trad­ed low­er but did not close below Asia Low. Then C TPO extend­ed IB down and closed below Asia low but with­in IB. D took it lower. 

How was the Entry?

I hes­i­tat­ed on the entry of a break from IB due to C TPO not clos­ing below IB. There was also a round num­ber below 1.96000 and I expect­ed a pos­si­ble reac­tion before con­tin­u­ing down for a pos­si­ble late-sus­tained auc­tion entry. This came in E TPO with a test of IB Low. 

How was the SL place­ment and sizing?

I had used a too wide SL and thus my siz­ing was off and I made it tighter by cut­ting some size and reen­ter­ing with a tighter SL. 

I messed up the resiz­ing though which proved in my favor lat­er on when I man­u­al­ly took the trade off.

How was the prof­it target?

Expect­ing a H4 phase 4 the tar­get should have been okay. 

How was the Exit?

Exit was okay. Since E closed below IB the expectan­cy was for the auc­tion to be sus­tained even though no LL was made. I took the trade off man­u­al­ly for ‑0.4R. This was also due to mis­man­ag­ing the siz­ing that worked in my favor.

What would a price action-based exit have done for the trade?

A M15 Morn­ing Star would have yield­ed a ‑0.3R loss.

What would a time-based exit have done for the trade?

0.3R

What did I do well?

I did well to take the trade and stick with the trade and let the mar­ket show me that my trad­ing idea was inval­i­dat­ed. Although I could have done that based on the M15 Morn­ing Star but the next bar retraced back to its new c‑dem and thus weak­en­ing that formation. 

All this chop is most like­ly due to the sum­mer time trading.

What could I have done better?

I think I did well… I am over­com­ing my Scoo­by Doo ten­den­cy that I have built up in the last few months. So it was good to just stay in a trade and live with it for a while. 

Obser­va­tions

Sum­mer­time chop can have a lot of con­tra­dict­ing PA. 

2nd Trade

When F closed with­in IB fail­ing the auc­tion through a Three Inside Up I wait­ed for a test of IB low to get involved. This did not pan out and I got stopped out. Got­ta love sum­mer­time chop. G closed as a Bear Engulf and then pro­ceed­ed to move high­er afterwards. 

Exit:

TAGS: Pos­si­ble D1 Phase 3, Pos­si­ble H4 Phase 3, Pos­si­ble H4 Phase 4, Trend is UP 3/3, Below Val­ue, With­in Range, Mod­er­ate Imbalance, 

Pre­mar­ket prep on the day

Pre­mar­ket Prep GBPNZD 20210610

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