QuoteDislikedThis was an AUD/USD long I took in August, the market just plunged through the weekly S/R levels and stopped me out. Is this a good example of what you are referring to above, and that I should have just stayed out of the market?
I don't know what was happening at the time of this trade, but I don't take trades where:
1. Scheduled important economic news is due out soon.
2. Unscheduled news has just hit the market which will clearly cause a large impulsive move.
3. An 'event' has just occurred - be it environmental, economic, political etc. that will cause an impulsive change in risk sentiment.
4. If it feels price is moving disorderly - there is nothing wrong with strong selling into a confluenced support area - it's actually (contrary to what some people think) what we look for than price slowly moving into our confluenced area, but if price is moving too far too fast this is disorderly and not something that we want to get in the way off.
With the AU trade it depends on how you managed the trade and on what TF - for example if I managed this trade on the 1HR TF( in terms of FLR's, entry and SL) then for me it would have hit the FLR.
QuoteDislikedYes, you should be out of that intraday long to give way to my short.
I had 2 positions and exited @ 1.5766 and 1.5785 last week (entries @ 1.5676, 1.5690 with SL @ 1.5625 in both cases) so was a nice 3.3R combined trade.