20210804 Trade Review GBPNZD

05 Aug 20210804 Trade Review GBPNZD

Play: Failed Auc­tion (Bad Trad­ing Idea)

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

Mar­ket Narrative

There was a huge imbal­ance at the open of 2.03xASR. Price was trad­ing at W1 demand and extend­ed slight­ly below IB before fail­ing auc­tion in C through a Bull­ish Inside Bar / M15 Three Inside Up. H4 was still in phase 4 though and D1 had trad­ed and closed low­er as well. 

How was the Entry?

I wait­ed for the com­ple­tion of the M30 Bull­ish Inside Bar and then a pull­back to new­ly formed M15 C‑dem for entry. In oth­er cir­cum­stances this would have been a good entry. Not in this one as I should not have been in this trade to begin with. Details of which I will explain later. 

How was the SL place­ment and sizing?

Slight­ly big­ger than stan­dard SL size at 20 pips. Stan­dard would have been 17. 

How was the prof­it target?

1R so a bit sub­par although expect­ing a failed auc­tion to move through IB to IB high I thought to take a chance. 

How was the Exit?

When E closed bear­ish I took the trade off at my entry lev­el for breakeven. 0R. 

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

-1R

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

-1R

What did I do well?

I did well to wait for a bet­ter entry instead of going in after the M15 Three Inside Up. 

What could I have done better?

I should not have tak­en this trade to begin with. Rea­son being that H4 was poten­tial­ly mak­ing a DBD for­ma­tion as Asia had print­ed a Grave­stone Doji in pre­mar­ket. Also, the lack of a strong bull­ish price action like a Bull Engulf to go long. 

Obser­va­tions

Huge imbal­ance does not nec­es­sar­i­ly mean a mean reversion. 

Missed Oppor­tu­ni­ty

N.A.

TAGS: Trend is up 2/3, Huge Imbalance, 

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