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:
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 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.
