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Summary: Process is Key
P&L: FLAT
Every trading day I recap my trades, including more than entries and exits. Why did I take the trade? How did I manage the trade, my emotions and cognitive function? All the good stuff as well as all the ugly of being a day trader. As always, feel free to reach out to me.
My weekly goal:
- Don’t take trades where SL placement is suboptimal. Instead, reassess for a better entry if possible. Unless there is a planned momentum trade.
Good Pre-market routines
Good Session PECS
Good Trade selection
Good Trade sizing or SL placement
Good Trade Execution & Mgmt.
Good Risk Adjusted Returns
Yes Daily review
Muppet meter (1 being best — 5 being worst): 1
Summary
- GBPNZD
- IB: IB traded down reacting off the newly formed H4 C‑sup. Berst entry would have been a few minutes in after a quick test of said C‑sup.
- C: Extended down from IB and closed back within IB again failing auction closing as doji with very long buying wick. Although I still believe there is more downside as this could just be a third reaction to underlying H4 demand.
- D: Closed trading below IB, no LLs. Selling tail in C confirmed.
- E: Closed as a Bull Engulf within IB
- F: Closed as a consolidation with long buying wick
- G: Closed making a Poor Low
- Taking off early today to spend on my rediscovered love: playing chess. If anyone is reading this that might be interested. I play online so it might be a fun way to get in touch while sharpening our minds 🙂
Summary
- GOLD
- IB: Traded higher
- C: Closed accepting value slightly deeper than I like as value is not very wide. Waiting for a retest of VAL.
- D: Closed as a Bear Engulf below VAL (leaving a poor high behind)
- E: Closed deeper into IB
- F: Moved through IB after failing auction and extending below forming a Neutral Day
- G: closed as an Inside bar with longer buying wick
Hypos — GBPNZD
- Which hypo played out and how did I hypothesize it playing out? How did it actually play out? What did the profile and price action show?
- Hypo 2 — Value Rejection Down
- Preferred: Confident close below VAL, IB extension Down with sustained auction. Probable low/medium initiative activity
- 100%
- At the open price tested newly formed H4 C‑sup (Bear Engulf) and traded lower leaving a selling wick in B extending down in C. Even though C closed back into IB (failing auction) due to the origin of the move I gathered we could see a further move down.
Hypos — GOLD
- Which hypo played out and how did I hypothesize it playing out? How did it actually play out? What did the profile and price action show?
- Hypo 3 — Return to Value
- Failure to accept value
- Preferred: price action reversal with IB extension down and sustained auction.
- 90%
- Price accepted value during C but there was no rotation. Instead a porr high was formed and D closed as a Bear Engulf with a consequent move further down in line with the D1 narrative.
How accurate was my assessment of market context? Was I aligned with market context?
- I did well here
How did I feel before, during, and after the trade?
- I was considering to go in at the open on GBPNZD but decided against it as I had not cognizantly witnessed a H4 Bear Engulf within value. Feeling okay with not trading unless I am comfortable taking a risk I opted to watch and observe. I was also hesitant due to the nearby H4 demand (not giving good enough R/R) although in retrospect I should have been more mindful of the originating location coinciding with a D1 supply. There was another opportunity to go in during B as it tested the new H4 C‑sup for the 2nd time.
How well did I follow my process?
- Trade selection
- The trade off the open would have been the best
- Trade Sizing & SL placement
- SL placement would have been above the round number so that would have been good.
- Trade Execution & Mgmt
- Monitoring M5 VWAP in DT would have ensured staying with the trade. Even places to add size on to the trade (not that that is something that I am actively exploring at the moment. Just as a side note since I have observed this under my ‘old approach’ many times over)
How well did I manage my physical, emotional and cognitive states?
- I did well here
What did I learn today?
- When a new H4 supply is created within a D1 supply, even though the open was within value, we can move to a value rejection. This value rejection came through a 2nd chance entry close after open and (as observed before) used the influx of participants at the London open as a driver to follow the move down negating the underlying demand. As hypothesized, this does increase the likelihood of a low/medium activity day.
What’s one thing I need to do more often?
- Being comfortable not trading. The amount of work I put in to study market mechanics should give me confidence that I will catch a similar opportunity when the time is right. I am confident of my abilities to not have to be in every trade.
What’s one thing I need to do less often?
- I should have been more mindful of the originating location ie. H4 supply made within D1 supply.
Under the circumstances, did I perform at my best?
- I did well here
For my trade plan(s) on this particular day, go here: