471 Pips on May 25th - 2012

" a Wrong/loosing trade that cost me 1 pip loss"

Total Pips gain:

GBPUSD: 32, 30, 13, 10, 9, 24, 24, 17, 8 = 167 Pips 
EURUSD: 62, 67, 26, 44, 47, 36, 22 = 304 Pips

A friend of mine was asking if I had a loosing trade. I did have some loosing trade but due to my trading style my loosing doesn't always mean loosing the money by 1:2 Reward Ratio or something like that. I have explained the double/triple entry applying precision entry reading Price Action on M1 chart several time in my post.

In this post (EURUSD below) I would provide a loosing trade that cost me 1 Pips, yes you heard me " 1 Pip Loss in a loosing trade". In a post somewhere I have mentioned that when I was wrong then my lost is not negative but a small profit.

Trade took on every step was relatively at the same time on both GBPUSD and EURUSD but for the purpose of steps analysis I will put them in respective order. We'll began with GBPUSD first.

Before we step in to the trade step, it's good to read my comments on my Post " The CALM before the STORM " where I replied to a comment elaborating the situation of Price Action GBPUSD and EURUSD are sitting on.

In the Chart you would see that the LST template slightly changed. I added Stochastic and standard MACD 2 Lines in to Vladimir's Divergence Indicator of LST to apply Russ Horn's FMM Method to capture every possible Divergence and for Trigger confirmation. As usual, the yellow lines are entry while red are Stop and TP.

Pic-1 GBPUSD M15:

As I state in the comment, GBPUSD are sitting on a strong DEMAND AREA (Sam Seiden Supply and Demand strategy) created on Jan 12nd and being retouch on May 24th. The area rejected the price up for the third time during Asian session but seems like reluctant to go up yet I completely aware that GBPUSD is sitting on a strong DEMAND area so I'd rather expecting a bullish set-up which indeed began to emerged at the end of Asian session on both LST and FMM.

Pic-2 GBPUSD M1:

I set Asian box end at 6 am GMT. On Pic-1 Chart M15 you will only see two initial order at the tail of Pin right on the line of Asian Box end. On the M1 chart above you'll see the situation of entry in detail. The entries took after the price rejected by Asian Range lower boundary. Sometimes Asian Range is a strong Support/Resistance. See that the first entry was less than 5 Pips of the low.

I added 1 more Long when price broke upper Asian session up. This trade was exited when the move paused and the LST histogram showing a potential Hidden divergence.

Pic-3 GBPUSD M15:

The price indeed made a correction. I enter 2 shorts but IBF* frozen the chart so the second short was fulfilled far low. I found many times IBF* messing its chart during critical situation prevent me from reading bars and scaled in. Market Makers does exist. It's the nature of the Broker. We have to accept it. I exit this two short slightly above the DEMAND area.

Pic-4 GBPUSD M15:

Price then resumed up in to a strong solid SUPPLY area. I didn't get any sign of LST of FMM to go long so I didn't take any long. Later Price rejected strongly by SUPPLY area. Look at the Chart M1 on top left. I enter one short and another after a small retrace at the bar of LST signal.

Pic-5 GBPUSD M15:

I add another short after a small consolidation. I exit all orders right on top of SUPPLY area + Trend line. Price made a retrace then resumed down to reach LST second/far Take Profit area beyond the lower boundary of DEMAND area. I was reluctant to sell in to a strong DEMAND area and there were no early sign of Divergence either:

TRADE on EURUSD:

Pic-1 EURUSD M15:

My Mistake that cost me about 10 pips: I was initially placing 1 unit long after the green bullish bar before the first pin/first LST bullish divergence. Since I was in Asian range I only place 1 Long and I place the Stop tightly right under the low of the red bar before it. I should have place the Stop lower, lower than the long pin bar far left. This Stop was taken out by the Pin bar of first LST Bullish Divergence. I was at not in front of my laptop in my office so I missed this first chance. Luckily there was another test to the low that made the Second LST's Bullish Divergence. I place 2 Long

Pic-2 EURUSD M1:

M1 chart above provide a more clear situation where the entry took place.

Pic-3 EURUSD M15:

The trade took off and hit the SUPPLY area

Pic-41 Mistake, Loosing trade - 1 Pip Loss:

Look at the M1 chart (Top Left) Price was rejected by SUPPLY area and made a pullback. On the resume I place 1 long thinking that price usually move to reach its ADR above in to the SUPPLY area. But later price made a "Thrust - VSA theory" but a very shallow projection (YTC-PAT theory) then a quick rejection alert me that I could be wrong. So I adjusted my SL to the last swing low (less than 1 pips below the entry line). If the price take down this swing low then I have to re-asses the chart.

Pic-42:

Price indeed take out my STOP for 1 pip loss.

Pic-5:

No sign of divergence but I could short after a failed test of the high. Look at the left there were 5 swing low scale-in opportunity. This move alone could have had provided me 200 - 300 with scale-in. Unluckily I was a little late in may office with a single screen Laptop. I was loosing focus and time as I have to click back and forth to check different Time Frame as well as taking snapshot of chart to be posted.Pic-6:

This trade went down in to the DEMAND area. Again, I was reluctant to sell in to a DEMAND area, Novice does.