Friends. I was going to PM one of the seniors out of humility but thought I'd share the trade with the group.
Pair: eurgbp
Action: Long on 4h PB
What I liked about the setup is that price broke through the 0.8900BRN, traded above, retested and formed a 4h PB. I knew of the greater trendline above (daily chart), but thought the small bearish PB that tested it was insignificant compared to the bullish PB that formed almost straight after.
Mistakes on my behalf:
- Went long with a very small buffer on close of the PB.
- Perhaps I was overly confident from previous winners and got lazy?
- Was I too presumptuous to think that this 4h PB would break the daily trendline?
Interesting how the 4h trendline is still valid/active, despite being broken.
Discussion:
As a general rule, would you apply more weight to the higher timeframe's trendline in the same way you would/could apply a greater weight to a daily PB over an opposing 4h PB (For example)?
Did I analys the story correctly or have I missed the point entirely?
Conclusion:
Can we now presume that we should be careful when trading into a trendline much like a BRN or S/R level?
Mike, SC, Jim, I'd be really interested to hear your views on this one. Also, feel free to share your thoughts everyone.
Thanks, Tomek
Pair: eurgbp
Action: Long on 4h PB
What I liked about the setup is that price broke through the 0.8900BRN, traded above, retested and formed a 4h PB. I knew of the greater trendline above (daily chart), but thought the small bearish PB that tested it was insignificant compared to the bullish PB that formed almost straight after.
Mistakes on my behalf:
- Went long with a very small buffer on close of the PB.
- Perhaps I was overly confident from previous winners and got lazy?
- Was I too presumptuous to think that this 4h PB would break the daily trendline?
Interesting how the 4h trendline is still valid/active, despite being broken.
Discussion:
As a general rule, would you apply more weight to the higher timeframe's trendline in the same way you would/could apply a greater weight to a daily PB over an opposing 4h PB (For example)?
Did I analys the story correctly or have I missed the point entirely?
Conclusion:
Can we now presume that we should be careful when trading into a trendline much like a BRN or S/R level?
Mike, SC, Jim, I'd be really interested to hear your views on this one. Also, feel free to share your thoughts everyone.
Thanks, Tomek