Hello fellow trades. I was looking to get some insight on a particular trade I took May 16, 2014.
-My overall bias was Bearish with the long term trend trending Down (not shown).
-Price made a Double AB=CD move into strong structure and Round Number (1.8300). (one big AB=CD followed by a confirming smaller AB=CD, marked kill Zone in the first Green Box)
-I entered short after conpletion on the confirming bearish bar circled on the chart. Even though Price looked to be gaining momentum, I seen that the two bars respected the 1.83 level and was confident it would go down. So I entered on next bar market.
I just have 2 questions;
-My overall bias was Bearish with the long term trend trending Down (not shown).
-Price made a Double AB=CD move into strong structure and Round Number (1.8300). (one big AB=CD followed by a confirming smaller AB=CD, marked kill Zone in the first Green Box)
-I entered short after conpletion on the confirming bearish bar circled on the chart. Even though Price looked to be gaining momentum, I seen that the two bars respected the 1.83 level and was confident it would go down. So I entered on next bar market.
I just have 2 questions;
- I had my stops 2 pips above the large range bar with a small body. (News Event: Weaker CAD, also Stronger USD) So I got stopped out for -17 pips. Was my stops to far? should I have exited the trade after the next bar penetrated the 1.83 level?
- Without the benefit of forsight, Was I reading Price Action wrong/right? Was the large range candle with a small body which gappd up a sign that price wanted to move higher and that the bearish candle after wards was a gap fill. I'm not sure if this was an area of profit taking, shorts getting stopped out or Shorts entering.
Any insight would be great. All in all, I still think I would of played it the same way. But would like another opinion.... Any comments are greatly appreciated
If any body was wondering I did enter short on the next AB=CD and 3 Drives pattern which I played to structure and also the Double top with multiplt rejections respecting the 1.8315 level which was stopped out at B/E.
http://icmarkets.ctrader.com/images/screens/6K8nn.png