Gumping
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Hey all
Sorry for the delay in posting. I've been back all of last week but haven't been doing any of this darksider stuff. I've been working on other things but I'd like to get back to my price action stuff. Got back to it today and spotted an opportunity on the H1 EUR/JPY: a reversal candle had formed in confluence with a diagonal trendline and a longstanding H4 pivot level.
Now that triggered at like 6 a.m. so I missed it. I dialled down to look for a re-entry opportunity and was struck by the 'Ross Hook' forming on M15. I thought trading the break of that with the stop below one of the recent swing lows was a legitimate entry, and that the target could well be the high on the chart.
However, I wasn't happy with the risk level on that trade, since the stop would have been 70+ pips. Price was retracing (was on the candle covered by the vertical line) so I thought I'd wait to see if I could get a lower risk entry, and lo and behold a reversal candle formed that just poked onto the 61.8% fib of that small swing. I used the break of that reversal bar as entry, and break of the low as stop (~27 pips risk) and had a target of the highs.
My stop got me in well below the swing high level, and after breaking it, the price took off, stalling a bit at the 50% Fib. which was in confluence with a pivot level. However, the retracement was weak, and I imagined there could be a ton of buy stops just beyond that level so a bit of propulsion may accompany it's break.
That was so. The 61.8% in confluence with a pivit line (not shown) and the round number, 118.75 also caused a little chop, but the price really did very little by way of retracement until it hit my price target at the top. At that point, I set a 35 pip trailing stop to see if I could get any more, but it retraced back and stopped out for +167 pips.
Conclusion there is I pretty much nailed the target area, I spotted the market at important levels and dialled in an entry that reduced my risk level significantly.
That trade gives me great confidence for the future - one of them each day and I should do well.
Sorry for the delay in posting. I've been back all of last week but haven't been doing any of this darksider stuff. I've been working on other things but I'd like to get back to my price action stuff. Got back to it today and spotted an opportunity on the H1 EUR/JPY: a reversal candle had formed in confluence with a diagonal trendline and a longstanding H4 pivot level.
Now that triggered at like 6 a.m. so I missed it. I dialled down to look for a re-entry opportunity and was struck by the 'Ross Hook' forming on M15. I thought trading the break of that with the stop below one of the recent swing lows was a legitimate entry, and that the target could well be the high on the chart.
However, I wasn't happy with the risk level on that trade, since the stop would have been 70+ pips. Price was retracing (was on the candle covered by the vertical line) so I thought I'd wait to see if I could get a lower risk entry, and lo and behold a reversal candle formed that just poked onto the 61.8% fib of that small swing. I used the break of that reversal bar as entry, and break of the low as stop (~27 pips risk) and had a target of the highs.
My stop got me in well below the swing high level, and after breaking it, the price took off, stalling a bit at the 50% Fib. which was in confluence with a pivot level. However, the retracement was weak, and I imagined there could be a ton of buy stops just beyond that level so a bit of propulsion may accompany it's break.
That was so. The 61.8% in confluence with a pivit line (not shown) and the round number, 118.75 also caused a little chop, but the price really did very little by way of retracement until it hit my price target at the top. At that point, I set a 35 pip trailing stop to see if I could get any more, but it retraced back and stopped out for +167 pips.
Conclusion there is I pretty much nailed the target area, I spotted the market at important levels and dialled in an entry that reduced my risk level significantly.
That trade gives me great confidence for the future - one of them each day and I should do well.
