AUDUSD H2 Short following a failed rally to original H4 Supply

8 באוג׳ 2019

Short term income trade on the H2 time frame for a short when prices failed to rally to the H4 supply we hoped to get short at

8 באוג׳ 2019

עסקה סגורה: הגיע לסטופ

Following prices entering and triggering the H2 supply short order, prices reversed up instead of filling the unfilled orders and dipping. As such, my stop loss was triggered and a loss was registered.

On hindsight, the lead up to the entry price was in a step wise motion. This could potentially lead to pockets on demand on lower time frames which would have resulted in high resistance for a move down.

Furthermore, a chance was given to me when a OHLC bar appeared above the momentum trend line which signaled the end of the downside momentum. This would have allowed me to get out with a half R loss instead of the full R. However, despite seeing this OHLC bar, I held on and hoped that prices would fall instead of triggering my stop loss. Interesting experience as I was mindful of how I felt throughout the trade, especially right after the closing of the OHLC bar above the momentum line.

Lesson learnt: if the market isn't going where you want it to go and allows you to get out for a small loss, GTFO.