Discovering An Edge

DAX
Added @12959

Closed longs @ 12966
Edit: +172 pips

DAX
Bounce off daily pivot.
Starting again with small positions.

Long @ 12961
[Plus500 prices]

LOL

and another @ 12955

The B wave completed as an almost perfect double bottom or W shape.
(Technically it's double but quite frankly it's not the bottom of a major move just a Wave 1)
However, the depth of the W could make the upward move quite steep beyond my target.
Perhaps to R3?

DAX with Daily Pivot

Okay, so my GBP trades are annoying me this morning.
But at the same time, I'm allowing for them to be underwater and using DAX as the float.
So provided I've read DAX right, I'm subsidising the GBP drawdowns with DAX profits.

Not the best money management strategy.
I am BIASED short on GBP. (GBPUSD and GBPJPY)

GBPUSD has returned to previous highs. GBPUSD has a habit of see-awing rapidly and whipsawing trades.
Which is why tight-stops are almost a no-no from a trade implementation perspective.
You can't afford to walk away from the screen during open trades.

I had mentally prepared for this on the weekend as I calculated the Daily Pivot for Monday.
The fact that it was above Fri prices, I knew that a run up would kick in.

I did have counter trades long but I didn't execute them well.
+23 against -91 on GBPJPY. That 91 was using stop losses. I should have kept the long trade open until confirmation.

Lesson for me: I can only handle 3 manual trades at once! LOL

Anyway, this rant is mainly for myself since I'm using this as a trading diary.
This isn't functioning as a confession to FF public to get feedback. LOL

GBPJPY
Okay, daily R3 hit.
Chancing a bounce

Short @ 148.81

GBPUSD
Comparitively, GBPUSD has a weekly R3 way higher [IG Index prices]
I tend to swap pivot point timeframes because it's important to get a complete TIME perspective.
I've noted many swing points on Weekly and even Monthly pivots, which many people eventually ignore because of the noise of "day" trading.
However, price can't escape the "time" context and that means being aware of all time horizons, not just the daily.

Could be time for [another] short on GBPUSD.
5 wave climb up seems to be complete.

15M shaping to overlap (dark cloud cover, I think is what the candle is called) but will have to confirm in 10 minutes.

DAX

Resistance levels to break:
Weekly pivot is at 12996 [igindex]
Daily pivot past, R1 12978 and R2 13004

GBPUSD
Short @ 132692

Added another @ 12982

Total DAX positions from:
12961
12955
12982

DAX
This hour close could be very promising.

Stops moved to 12988

I'll close longs at Daily R3 13027

Price action on 2MIN made me nervous. Candlestick pattern wasn't moving towards and creating little hammers.
Could be wrong, but it was safe to take profits.

Closed all longs @ 13012
+138 points

DAX

Small Short @ 13025
Daily R3 bounce. Looking to retrace in an ABC fashion.
Earlier impulse move counting as 1 of 5 waves that make up my projected Wave C to 132XX.

GBP
Currently open shorts TODAY:

GBPUSD @ 13269
GBPJPY @ 148.81

Other positions from Friday are underwater.
Looking for them to break their respective Daily Pivot Resistance levels.
Won't be adding more shorts as I am overbooked!

GBPYJPY

This is beginning to look hopeful. However, we're coming into London lunchtime.
There could be some reversal but I hope not too much.

What's interesting is on the 1H, it's a classic ZZBB pattern.
Red Box shows that price turned and went long, but the turn was inside Bollinger.
This is usually a sign that price will return to that level to "complete" whatever misprice occurred to trigger the run.