PeterCrowns recommends that we treat start of day at 06:00GMT and to pay more attention to IBs formed in first 6-9 hours of the day, and he has explained clearly the basis for his recommendation.
But when we say "we pay more attention to first 6-9 hours of the day", does that mean we should ignore IBs formed after 9 hours? If we do this, then we may miss out good trades, as was the case for this particular G/J trade.
On the other hand, if we should not ignore IBs formed after 9 hours, but merely to be more cautious trading based on them, then 2 questions: (1) We will be looking out for IBs throughout the trading day (06:00 to 05:59GMT), not only the first 9 hours. (2) What is the criteria to say "This IB is good for trading"/"This IB is not good for trading"?
But when we say "we pay more attention to first 6-9 hours of the day", does that mean we should ignore IBs formed after 9 hours? If we do this, then we may miss out good trades, as was the case for this particular G/J trade.
On the other hand, if we should not ignore IBs formed after 9 hours, but merely to be more cautious trading based on them, then 2 questions: (1) We will be looking out for IBs throughout the trading day (06:00 to 05:59GMT), not only the first 9 hours. (2) What is the criteria to say "This IB is good for trading"/"This IB is not good for trading"?
DislikedThe Gbp/Jpy from this moring.
Again I took 0500 GMT Open which was 203.63. It just so happens that the 0400 GMT candle was an IB. So I played it off the 0500 GMT open. Right or wrong? Oh well, it looked playable to me.
Price came down and tickled the bottom of the 0400 IB. Not strong at all. Price then moved up and broke the top 0400 GMT IB pretty strong so I entered at 203.75. My stop loss was placed just below the bottom of the IB where price tickled, at 203.50 -26 pips.
Price moved up pretty strong and I didn't cover the trade risk (my stop loss amount -26). Price climbed to over 100 pips and I decided to take some off the table. Just by blind luck Price fell right after I took half off at 204.83. for +108. I am still in the trade with the other half, with the stop loss at 204.10Ignored