DATE: Wed, 20 – 03 – 2019
TRADE: Sell
TYPE: Breakout
CHART:
COMMENTARY:
Feeling:
Humbled. It was another new setups combination that I didn’t think could happened, but did. There was an invalid on-time Breakout on Candle 10:00, followed up by a valid on-time one; never seen it before. What did I think in response to this combination? “Well, if in March 08’s Trade I hypothesized that previous invalid early-bloom Setup would not automatically cancel out a valid on-time setup, that must also be true for this combo!” With that conviction, I opened a Trade for the valid on-time Breakout on Candle 11:00. Boy, was I wrong! The next H1 Candle lick my SL and hence quickly kicked my trade out of the game. And boy was I right for putting an SL there! Particularly after the report on the Fed’s hawkish view, Price spike up hard. The SL saved me from a major Loss.
Results:
As mentioned above, there were 2 Breakout Candles inside this day’s Signal Period. The first one was on Candle 10:00. It was invalid because it happened at the first Upper Chandelier. The second one met all criteria, except it happened after that invalid one. I decided to open the Trade there considering previous hypothesis. I was wrong. Price hit SL immediately. Then Price moved up 3 Candles, followed by 3 bearish Candles, and then moved up 3 Candles again, in which the last one—Candle 21:00—moved up so strongly broke 4-5 Fractal Levels before residing slightly on level $1313.
Learning:
TRADE: Sell
TYPE: Breakout
CHART:
COMMENTARY:
Feeling:
Humbled. It was another new setups combination that I didn’t think could happened, but did. There was an invalid on-time Breakout on Candle 10:00, followed up by a valid on-time one; never seen it before. What did I think in response to this combination? “Well, if in March 08’s Trade I hypothesized that previous invalid early-bloom Setup would not automatically cancel out a valid on-time setup, that must also be true for this combo!” With that conviction, I opened a Trade for the valid on-time Breakout on Candle 11:00. Boy, was I wrong! The next H1 Candle lick my SL and hence quickly kicked my trade out of the game. And boy was I right for putting an SL there! Particularly after the report on the Fed’s hawkish view, Price spike up hard. The SL saved me from a major Loss.
Results:
As mentioned above, there were 2 Breakout Candles inside this day’s Signal Period. The first one was on Candle 10:00. It was invalid because it happened at the first Upper Chandelier. The second one met all criteria, except it happened after that invalid one. I decided to open the Trade there considering previous hypothesis. I was wrong. Price hit SL immediately. Then Price moved up 3 Candles, followed by 3 bearish Candles, and then moved up 3 Candles again, in which the last one—Candle 21:00—moved up so strongly broke 4-5 Fractal Levels before residing slightly on level $1313.
Learning:
- New Criteria: If such double setups (i.e. invalid setup, then valid one) happen again inside the Signal Period, don’t trade it!
- After an invalid setup, Price tends to go zigzagging like what happened this day and previous one. So, we could say the Criteria also work as a Preventer for me to enter potentially bad trades.