Trading Corrective Move - a cristal clear setup

Since last week I have been visualizing the future price move to be intra-week bullish (YTC PAT teach how to visualize the future price move)


Please Notice that the link on these page would lead you to FMM, LST, YTC-PAT and Trend Collapse official page as asked by the author. Yet the systems are available free in Indo-investasi as well as other thread anyway. Legal or illegal depend on your respective stand.

On the last paragraph of the post:

http://trading-price-action.blogspot.com/2012/06/1671-pips-on-june-1st-creative.html

I've been expecting both GBPUSD and EURUSD to have an intra-week bullish move.

"But seeing the M15 chart I was thinking of a short term future price visualization for the next week. Base on the large pile of Buy at this demand area, next Monday i would expect an intra-week bullish move that preceded by a stop hunt low to test the low, straight long trade, or a gap-up price then fill the gap to test the low. Here is where LST and FMM (Klik the link if you aren't familiar with it) play their part but we already know what to expect. Lets see them prove themselves."

They were indeed bullish:

 EURUSD H1 (240 Pips Weekly Range):

 GBPUSD H1 (270 Pips Weekly Range):

   

And the bearish move on Thursday - Friday has also been pre-analyze. Look at the comment on the above mentioned post.

"Since the early week Both EURUSD and GBPUSD indeed move bullish as have been visualized (Monday up, Tuesday correction, Wednesday Up)

As of June 6th, end of US session EURUSD halted by Supply Area while GBPUSD has been halted before US session and made choppy topping formation.

On D1 EueUsd has seen a potential Bearish hidden divergence, means if tomorrow the price reverse down then it would be a bearish resume of a D1 bear.

Align with D1, both H4 and H1 has also showing a potential Bearish Regular divergence, means if the price reverse down then it would be a reversal for H4 and H1

While on M15, EurUsd made a last thrust and halted by a Supply area. If tomorrow M15 reverse down then it would validate the premises for H1, H4 and D1.

Price must turn Bearish around this point to validate the divergence state. Otherwise, if a sentiment occurred and pulled price up that also pulled the divergence away then the divergence setup would be invalidated since H1 H4 and D1 is just a potential divergence, not valid yet.

But seeing all aspect aligned I am strongly believe that my premises would be true.

Remember though, anything could happen. Lets see the market reveal it self." 

And:

"GbpUsd has also showing the same state but the sign on EurUsd were clearer. Tomorrow might be what Steve Mauro called a Mid - Week reversal"

They were indeed reversed down for 180 Pips (EURUSD) and 200 Pips (GBPUSD).

But even both pairs bullish it doesn't mean there would be no short opportunity. At least there were 2 short opportunity along the way when the price made corrective on both EURUSD and GBPUSD.

On June 5th EURUSD made sharp corrective:

Well, do not mind about the pips gain (but if you curious zoom the top right hand side to the real time pips gain indicator and count your self). I don't want anyone called me boasting my Pips gain anymore. I was thinking that the Pips gain shown by the indicator on the top right chart was enough.

The point here is, during a bullish move there would be a corrective and the corrective move will always steep like a falling rock, but it must be seek carefully. 

As I have always said, during a strong trend the price would diverge several time before actually reverse. The price were rejected by a SUPPLY area created on May 29. On MMM template it was two pins/shooting star to the blue/yesterday high and S1 at the same place. Yet I took the first short after the price broke down the Trend Line the back to test the broken trend line with the second pin (Hector's - Free Trend Collapse).

Steve Mauro might call this a CRYSTAL CLEAR SETUP but he failed to make it clear to his student. Newbie of MMM would try to catch all the M/W formation thinking that he/she caught the top/bottom. 

Vladimir would have probably did the same thing. He put less explanation on the confirmation required after a Divergence setup emerged. He only said that any familiar clarification would be required. Anything that the user familiar with such as Trend Line and Support/Resistance. He put less importance that this point is the difference between life and death.

See how many times divergence occurred yet no reversal. If trader rely the entry solely on divergence they would wipe their account. 

"Divergence should only be treated as SETUP while ENTRY should not be taken based on divergence but by the PRICE it self"

On the other hand Russ Horn's Forex Master Method did a better job to give teaching on divergence knowledge.

On EURUSD trade above, I was tighten my stop right above the ADR low (Thick red line) but as I see a second failed test to the DEMAND area I exit all position and wait for a retrace to have re entry.

It was a hidden bearish divergence by Stochastic so I enter 2 units, about 5 to 9 Pips of the high. The stop was above the swing high but as a see candle close with a hammer and a potential regular bullish divergence on Stoc I tightend the stop (see the red dashed line, the picture taken while the second stop haven't been moved). The stop was hit by -1 and -2 Pips.

SEE,,, Why still anyone accused me of hiding my loosing trade. I've shown some of the loosing trade. Just like the following trade:

As have been spotted, it was a Regular Bullish divergence so I enter 2 units on the second failed attempt to test the low that leave the second Hammer. New trader should have not done this unless understand the price action. 

See M1 chart for better Price Action reading. Additional 1 unit long when the price took off and broke the trend line (it is the safest entry). Later I did a stupid mistake breaking my own rule "Never chasing the price". The last green bar on M15 was a quick move. I jumped in with 1 unit long just later to see the price action on M1. 

Look at the three pins to the high. That told me that the move up is going to failed. I was aware that the bullish divergence was still valid and nothing to halt the price to move up. If only I hadn't enter the last Long I would still hold the stop under the swing low of M15 and I would not have adjusted my stop to the last swing low of M1.

The stop was to tight. The price just move lower than the swing low of M1 chart by 1 Pip, just to take out my stop then move up nicely, as Steve Mauro called "BACK INTO THE RANGE", for about 50 Pips.

I was stopped out for about 10, 9, 5 and -13 Pips. See that,,, it was a loosing trade but still small profit.

The same situation also on GBPUSD, June 5th but i didn't take any trade since GBPUSD was move wildly:

Another trading on Corrective move also spotted on June 6th, EURUSD and GBPUSD:

See that all the teaching material (Price action, YTC PAT, Al Brooks, Vladimir's LST, Sam Seiden Supply and Demand, Steve Mauro's MMM, Russ Horns's FMM, etc) work hand in hand in trading.

1,671 Pips on June 1st - Creative Accounting..???

This would be a long lesson about the Difference between "Scale - In" from "Creative Account" and broad market analysis that lead me to maximize the potential gain.

From the perspective of Money - Gained and Money - Risked, creative account and Scale - in technique is completely different. They are nearly opposite in my opinion.

Why...?  With creative account you multiply the PIPS and MONEY risked while with scale - in you multiply the MONEY and the PIPS gained. Creative account would split the initial entry to 10 or something  just to jack-up number of pips gain as well as pips risk at the same time, yet money risked and gained is just the same as if the initial entry were not split. This maybe done just to impress readers for pips gain.

On the other hand Scale in entry split the initial entry for Money Management to ensure a winning position if price later go against the trade while preparing to ride the move if price go in our trade (Please spend time learn and apply YTC-PAT's the importance of exit strategy  and Trading in the Zone for this point). The next scale in would be a safe trade at all. Look at my post on 203 Pips on May 30 Apr. The step explain clearly how the stop adjusted at every step of the scale in. A wrong trade/loosing trade might occur but no money would lost.

While scale in taught by Steve Mauro's MMM could be just nearly the same with the above Creative Account. It's like betting with all your money assuming that you know where exactly the market is heading while "Trading in The Zone" is totally correct "ANYTHING COULD HAPPEN". That's why I REFINED this Scale - in Scale - out incorporating the most powerful "entry-exit Money management" taught by YTC - PAT and Trading in the Zone (some still ask what YTC-PAT is, it is Your Trading Coach - Price Action Trading, by Lance Begs).

Followings are trade on June 1st, GBPJPY and GBPUSD. They are example of what so called "Creative Account". I could have just split my initial entry to 2 or 3 units instead of split to 7 units. The pips gain would surely impress you all. If only I scaled in along the way i would double that pips.

I could have gain more than 1.671 Pips trading back and forth if I were not exited too soon in some exit.

But the most important lesson in the above post is the PER-ANALYSIS of TREND STRUCTURE that lead us to the move that we exploited (a rally in to the bottom - a strong spike bounce then Re-test of the Low) that result 1.671 Pips gain.

I have explained this situation in the last 2 post that GBPUSD and EURUSD is heading toward a very strong DEMAND area.

GBPUSD, D1 May 31st:

The picture above is Daily chart of GBPUSD on May 31st, it was halted by a channel line. You'll notice the 3 thicker gray lines I drew. Look at the top lines. It was the situation that I explained in the comment of my post "The CALM before STORM" where GBPUSD was halted by a Demand area while EURUSD has been over shot its Demand area. So I was tent to believe that both GBPUSD and EURUSD would go for their next lower Demand area.

The middle and lowest lines is the demand area I drew manually. From this point there are no barriers to halt GBPUSD to test its Demand area. Sam Seiden would say it would be only Novice who's going to sell in to such strong Demand area. But Sam Seiden also say that, since professionals need novice to buy from,  a strong bearish move in to the Demand would often created to create believe that price is strongly falling.   

So I would expect a straight trade instead of a pullback/stop-hunt to the high. I noticed that there is still more than 150 Pips to be exploited.  But I also need to be extra careful to watch the reversal sign. Look to the left and apply odd enhancer. The price was leaving the area strongly strongly and leaving a pin. Samething is going to happen on June 1st. The price would aggressively penetrate and reject by this area leaving a pin. And if there would be a strong rejection I would wait for the price to test the low for a long opportunity. 

So, as taught by YTC-PAT, I would visualize the movement tomorrow would be  a strong bearish move - bullish rejection - retest of the low. Anyway, as Trading in the Zone taught, ANYTHING COULD HAPPEN. So I would evaluate the sign in every step whether my premises are validated or in-validated.

GBPJPY, D1 May 31st:

This is the Daily chart of GBPJPY on May 31st. Price was halt by a Demand area but it was not a strong Demand area. Besides, we have two long low close bear candle. Both Al brooks and YTC-PAT would suggest a break through. Additionally, I would target the trend line as well. GBPJPY has more than 200 Pips to be exploited. Having this pre-trading analysis, I was ready for the trade next day. So, tomorrow I would expect a Short trade that could be preceded by a stop hunt to the high or just a Straight Short Trade.

Look how I exploited the market based on my future price visualization. Following are trade that I took. Just to remind, yellow lines are entry lines while red lines are Stop loss.

GBPJPY, June 1st:

I placed 3 units short after Asian box. Price was reluctant to go up. There were no divergence line by LST as it was not an extreme area but  it was a hidden divergence following by a stoc cross. I got no time to scaled in since the shorts were placed while at office then rushed home while the price made a strong bearish move.

Look how I neglected the Bullish Divergence line drew by LST as I realized that we are on a strong bearish move. I have stated many times that during a strong move the price might diverge several times before reverse. Thus we need price action confirmation to take the trade. Look how price action are over all of any indicator. Though, I anticipated any possibility by adjust my stop right under the lowest entry line which was  never been touched.

The trade exited after the chart made a hammer for 126, 121, 112 Pips.

GBPUSD, June 1st

Something was wrong, I could not place further entry on GBPUSD. I was being rejected all the time and finally managed to place 2 shorts on GBPUSD. The trade exited for 31 and 26 Pips.

Image3a.jpg

GBPJPY made a retrace. There were a divergence line by LST. I took long trades after a failed test low but  it wasn't looks like a strong pullback. The trades were scratch for small profit when the chart showing a bearish hidden divergence. I was reluctant to go short anticipating the move has over. I didn't take the short at the pins as usual but I waited for  confirmations. I didn't even take short after the stoc cross down until the yellow MA crossed down. I witnessed that the price still away from its channel lines and there were no "Last Thrust/Volume climax" yet. I also realise that news is coming. The big move is imminent, I was aggressively place 5 shorts on GBPJPY and 2 Shorts on GBPUSD. I was excited to know this situation (Russ Horn would say: I feel like I am cheating). This is the emotional situation that I would not recommend. Price indeed made I spike low fueled by the news. See, Steve Mauro said that Market makers use News to complete the MM pattern.  I knew that this move will create a pin so I exited at the first pause for 75, 75, 75, 78, 78 Pips.

GBPUSD.

Same situation on GBPUSD. Exited at Demand area for 26 and 28 Pips. This bar is a news bar that later turn to long pins.

Image5a.jpg

As I have visualized, the price were wild around the Demand area. The Market Maker indeed create this move. Professional were buying at this area that create such massive moves. We'll compare this picture behavior with the picture from previous  Demand area and asses if this is going to be trend reversal. GBPJPY was moving wilder that gave me no time to make decision. I was able to take a decision after GBPUSD made two pins to the low. I placed 7 Long trades aimed for the above Supply area. This is a mistake that made me exit too soon. I should only tighten my Stop in this situation. The price made more that 130 Pips while I exited around 70 (68, 68, 67, 67, 67, 68, 68)

Image9a.jpg

Image9b.jpg

 

Price indeed reach its upper channel. Look at Daily Chart. I have said several times that Pins on S/R or SupDem would 80% of the time being tested so I place 7 units Short when the price action told. Look at the price behavior on M1 and M5 where I place the short and stoc divergence and cros on M15.

Again the trade exited too soon for 50, 48, 48, 47, 50, 51, 48 while price still reach the aqua line. 

GBPUSD-D1

Now look st this GBPUSD - D1 chart. Its a pin to Demand area. Lets visualize the future movement.  The price was strongly rejected in this area compare to the upper Demand area. See it in M15 chart. This strong rejection could be a start of a bullish trend.

But Look it in Weekly chart:

GU-W1:

It was a low close bear candle.  Look to the left, this demand area have rejected GBPUSD up four times. Yet the price took process to reverse, learn the candle form. The price might reverses up from this point but could also just a retrace for a larger bear move (could take 1 week to develop).  If price would broke the Demand area then there would be more than 10.000 Pips to the next Demand area.

Which one would happen...??? we don't know anything yet. We'll see the price developed and act accordingly. Remember, this is what we call: THINK GLOBALLY, ACT LOCALLY.

But seeing the M15 chart I was thinking of a short term future price visualization for the next week. Base on the large pile of Buy at this demand area, next Monday i would expect an intra-week  bullish move that preceded by a stop hunt low to test the low, straight long trade, or a gap-up price then fill the gap to test the low. Here is where LST and FMM play their part but we already know what to expect. Lets see them prove themselves.

1.748 Pips Gain in a full week trading

I posted the trade on May 21st to complete the whole week trading post. Unluckily I have to spend my weekend to prepare 2 post including this one.

GBPUSD: 10, 44, 32, 30, 18, 9, -3, 27, 19, 17, 16 = 219 Pips

EURUSD: 19, 19, 0, 20, 16, 1, 1 = 73 Pips

Total: 292 Pips

The total Pips gain this full week trading:

May 21st    : 292 Pips

May 22nd  : 494 Pips
May 23rd   : 177 Pips
May 24th   : 314 Pips
May 25th   : 471 Pips
 

Total:  1.748 Pips

Finally, this post on the trade May 21st - 2012 would complete the trade for the whole week five days. You will see the wrong trade just like the other post. Learn the situation when I loss -3 Pips on GBPUSD and several trades of EURUSD that I scratched and scratched. If I were loosing focus and wasn't read bar by bar price I would have given back some of my profit to the market. This wrong trade would be a huge loss if dealt differently.

Some of the trade on EURUSD I would call a wrong trade since they were not move in my favor as expected. I know that a member forum say that I spent a lot of chart time. Indeed but look at the gain. I know that many traders still expecting a stress free trade, set and forget trade. Tell me if you were not stress when your stop keep being hit and you lose money. On the other hand I could have close the wrong trade in profit without waiting for the price hit my stop. You might think that those would be just a small profit, then read my post on trade may 24th, it was accumulated more than 300 Pips.

It was Lance Begs YTC-PAT taught me this. So I would directing traders to his site as he requested in return of his kindness to share his knowledge. (Although I know that Indo-investasi forum provide the link for free). It was YTC-PAT taught me to trade Dual monitor (Next week would be three screen, I have to order another screen and usb to vga adapter from the capital of Indonesia as I am currently at the very remote small island for a tour of duty), have higher and lower time frame chart, trade evaluation, rehearsal  etc. But Lance Begs apply it on the Support and Resistance line while for me at the Supply and Demand area. Again I should also thank Sam Seiden for this Great share of knowledge.

Still some criticize people that giving a good sharing: why would they sell system if they really making money with their system. I also aware that my way of providing real time chart and pips gain as indicator show at stage to stage is still not enough (instead of showing  complete chart and an empty claim that I made more than 800 Pips during this move).

I believe they are doing this not for money. Some people doing things not for money. Some enjoy teaching and sharing.

I will post the trade on GBPUSD first, yet both trades on GBPUSD and EURUSD were taken nearly the same time. You may notice that in this picture the Divergence line of LST System (still in the forum some asked what LST is, it is Forex LST System ofVladimir Ribakov) were missing as the picture taken today on May 27th.

This is the picture of complete move GBPUSD M15 on May 21st:

Pic-1:

H1 chart (not shown here) has shown indication that the correction on the large bearish move has ended. There were a fading of bull strength and the price has been rejected several times by a Ceiling (yellow circle). I was a little bit late to open the computer so I miss the trade at the end of Asian box.  I took the first trade at the last circle when price made two Pins to the high

Pic-2:

 

LST has showing Regular  Bearish Divergence. Look at the chart M-1 (top left), price rejected by blue line (MMM). I enter 2 initial units. First TP above the next Demand area. The first move down just miss my first TP then price show a rejection and failed test on M5 chart (lower left). Anticipating a deep pullback I adjust the SL of 1st TP 4 pips above the last swing high on M1 while  the second unit's SL under the entry lines. This stage I am already in the safe ride.

Pic-03:

It was this Pin that took out the SL of the first initial entry for about 10 Pips. Look at the M1 (top left chart). Two consecutive high close bullish bar failed to take out its initial High. David Weis would call this "Lack of Follow Through". I scaled in 2 units short.

Pic-4:

Some scaled in after each resume and finally the price halt by the DEMAND area (Please,, Please,, Learn Sam Seiden Method, it works all the time). Look at the Chart M1. Twice rejection, Lack of Followtrough and I was out. See the Pips gain indicator on the top right. The last scale in was a loosing trade -3.4 Pips loss. But am I lost any money ,,,???

Pic-5:

Later M15 chart, LST trigger a long trade. I was in doubt as the price has over shot the Demand area. Only after the third long pin that I enter 2 units Long.

Pic-6:

Price rallied up to take out my first TP.

Pic-7:

At this stage both LST histo and scto showing a potential Hidden Bearish divergence so I close the second unit and be ready to revers the trade.

Pic-8:13

More than enough of sign, I place 2 units short.

Pic-9:

Price fell of to take my 1st TP. It's on top of a DEMAND area and already late in the night so I close the second units then turned in.

Followings are EURUSD trade, hope that the picture are self explanatory:

Complete move of EURUSD on May 21st taken today on May 27th:

Pic-1:

This trade was closed a little bit earlier when I saw a potential bullish divergence and a quick rejection on M1 and M5 chart while price still made a last thrust for more than 10 Pips and reached its ADR as seen on the next pic.

Pic-2:

This is again a wrong decision. I doubt the Long singnal alerted by LST as the price halted right at the Trend Line. I forgot that Trend line, SR, Supdem could Hold or just Halt . That's how all aspect of analysis must come to mind all at once and when some analysis seems conflicted the wrong decision are made. As my rule, I should just move the Stop to BE. But as my premises were bearis, I doubt the setup provided by LST. I refined this mistake in the days of trade next. Keep refined and refined, all of them just "return to the rule", being discipline, a willingness to do what I know I should do. See the next pic that the price resumed up in to the Supply area.

Pic-3:

I placed 2 units short when the price reversed down. I scratch this trade as I closed the trade on GBPUSD, see the candle time and compare.

314 Pips on May 24th - My LOOSING TRADE

The main mistake I made was didn't notice the huge divergence as LST wouldn't draw Divergence lines if not at the extreme area. This made me made wrong orientation and made some wrong trade that I scratch and scratch.

But WRONG doesn't always mean Loss pips. Still the result:

EURUSD: 21, 3, 25, 25, 3, 2, 2, 40, 32, 7 = 160 Pips
GBPUSD: 25, 25, 11, 4, 2, 2, 14, 13, 12, 16, 28, 2 = 154 Pips

I've been asked if I were had a loosing trade since all of the post only showing winning trade. I've answered that it depend on our respective perspective on how we define a loosing and a winning trade.

Most of traders would think that a loosing trade is loosing certain sum of money as the result of Risk and Reward ratio. Simply said when order placed with 1:2 reward ratio then price move against the trade and take the stop then it would be a loosing trade.

If the above perception were to be the base of Loosing Trade, then personally I have a better word to divine my loosing trade since I didn't always have to lose money if the market against me. Therefore I'd like to call it Wrong trade as I have many times mentioned in my post that my loss is small profit or rarely at Break even.

Lance Begs in his YTC-PAT has taught that reading Price Action bar by bar then there would be a certain point where an experienced trader would realize that he/she is at the wrong trade. He/she would define a certain point to define his/her edge where the price reach certain level then he would not be interested in the trade anymore and scratch the trade. Lance Begs rarely wait for his stop to be hit.

In this post I would provide what I called a Loosing Trade, Ooops I mean a wrong trade both EURUSD and GBPUSD consecutively. The similar scenario of loosing trade are also part of the post "471 Pips on May 25th". Read it if you haven't.

The chart below is the complete move of EURUSD on May 24th. Market Maker made a so called Stop Hunt Low by Market Makers Method after Asian Session then made a big correction then made the real bear move during last session of US. I made some wrong short trade during the stop hunt and the correction but I didn't lose money:

Pic-1, EURUSD complete move on May 24th:

The blue dashed lines are my drawing.

The main mistake I made was didn't realize the big Divergence as the result of my stress around the critical area when IBF* frozen the price for 1-2 minutes then giving burst by burst candle movement.

Pic-2:

Please read the comments on "The CALM before the STORM" to be aware the situation that EURUSD are sitting on a strong DEMAND area. See the price bounced three times and made a nice trend line.

I took two units WRONG Long trade when the price rejected up at the end of Asian box at the Bar of LST's divergence signal. Indeed I placed the Stop under Asian Box but I pay a close attention on the minor Supply area above and place the first TP slightly under the SUPPLY area.

The first TP was taken out for 21 Pips. Later when SUPPLY area rejecting price strongly (see Chart M1 - Top left) I was alerted. As YTC-PAT taught, if the price take over the last swing low that lead to the last swing high I would not be interested to the trade anymore and have to re-asses the trend.

The first move down didn't pass the last swing low but later reluctant to go higher. Later when the price pass down the swing low left I closed the the remain second unit for 3 Pips. I don't need to wait my Stop to be hit.

"Giving the market a room to breathe" should be applied prudently. So I re-asses the trend and began to realize that even EURUSD are sitting on top of a strong DEMAND area the sloping of bar series between swing was actually lean to bearish (see the dashed blue lines). The price could still pass down the low of 23rd and penetrate deeper in to DEMAND area.

I saw a growing bearish  momentum on M1 (see the series of bar, red and green). I saw the potential Regular Bearish Divergence on both LST and FMM. LST drew the Divergence line after the red bar right of the shooting star closed. I confidently place 2 units short. My confident was growing as the price strongly broke the Trend Line.

Pic-3:

Later I add one more unit short but when price halt I exited all units considering that the DEMAND Area would hold.

Pic-4:

But later price still resumed (circle-1). I added 3 units short. This is a mistake. Some times I loosing focus and neglect my own rule. But again IBF* messed with me. I have always said in some of my post that prior to a sudden big move my broker would freeze the chart, re-quote as the internet connection were in trouble (I still could browse anyway). This one even worst, the circle-2 is not a price gap but chart frozen for 1 - 2 minutes and messed up the bar. The bar created from frozen to frozen. See the big green candle on M15 that later corrected to be a HAMMER (compare to the Pic-1).  Maybe my broker already recognize me, how would I read bar by bar in this burst by burst move. I face this situation twice this week.

On the circle-2 the price already take out the last swing high that lead to the extreme low. But I had no chance to get out. Price frozen to frozen. It was at circle-3 that I managed to get out.

Note: This occurrence is not by un-intentionally. Read post by "Darkstar" on FF about how is forex market structured and you will accept this situation (same like Stop Hunt, re-quote, frozen etc) is the natural of Third tier Forex market. Its the mutual best practice the Market Maker could provide us among their limitation. We are treated differently by broker. We should not condemn the broker but embrace this natural circumstances instead and learn to dance in the rain. I recommended that you read the posts that have been bundled in to PDF.

Pic-5:

Price continue bullish and made another move down but I didn't get any sign of strong move. It was a last thrust, strong pull back and failed test that I enter 2 shorts and one more scale in. Exit the trader when the price halted at the Trend Line and Take out 1st entry.

It was later that I realized that I didn't notice the huge divergence on both GBPUSD and EURUSD that made me making the mistake after mistake then went sleep before the real bearish move.

Followings are GBPUSD trades that have the same Mistake situation as EURUSD. Hopefully the picture would self explanatory.

Pic-1, The move of GBPUSD on May 24th:

The Wrong trades:

Pic-2:

Pic-3:

Pic-4:

Pic-5:

These I called Wrong trade but will be a Loosing trade if I give the market more room to breathe and take out my Stop Loss.

As I have always said that reading price action correctly, the market would never instantly against you. Always take the 1st TP, re adjust the Stop of the second units and never let the winner turn to looser.

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.