Price closed above 3 weeks high , and hence any retracement is a long.
This is obvious but the usual issue will be : will price even retrace to colllect bullish limit orders?
For SL , look towards the d1 line chart pivot. If price can close below, then this long trade will be wrong. That will be a whooping 100+ pips. Will be doing position sizing accordingly.
Where should I look for TP then?
Looking at the monthly chart is an amazing demonstration of technical studies.
After a 3.5 years worth of consolidation, price broken up in straight line.
I can only hazard a guess that final TP will be ~ 1.81 2X of the boxed-in- price.
Saw this consolidation in July; I will remember this scenario in my heart for a long time.
Buy orders have been filled. The first pos was entered when price attempted to break the high. Had to endure a 100 pips paper loss and did not feel good about it.
Yesterday was one of the days in which I would say has been a poor day in terms of trade performance.
this trade would have been a winner if price had reached TP1 sooner and at least would have pocketed some profits.
I was also contemplating if taking off the EP1 which was a bad entry would have been good at -10 pips.
In the evening, price plunged and from -10 pips I manually cut loss at 200 pips- a classic case of the hot-air balloon predicament, should I let go early and suffer some loss or hold on in the hopes that I may have a safe landing?
Mistake3: I manually cut my losses without waiting for day close to confirm the bearishness.
Indeed at the end of the day, pin bar could be seen and that was closed above the 3 daily line chart support.
When mistakes are piled onto mistakes, the effects seen will be compounded.
I seek to reduce this type of mistakes, which only erodes my profits.
Too many of these, and my trading account will suffer.
the concept of using 52 weeks high and low works. I need to continue to reinforce the habit of looking into HTF to scan for strong SAR that screams out for attention. In this case, this level was a warning sign that I should start taking profits and look to scale down my GBPCAD longs; as I had ran into resistance.
On reflection, this is how I might have done better with using macd.