Did a good trade although the entry could have been better. Position size wise was not big as followed rules to manage $$ risk.
In this setup the 5 week trend was a strong consideration as week to week it was up.
I looked into the h1 for a lower timeframe bullflag.
The bottom was flattish and did not suggest of a wash n rinse, hence that was a reason for me to reduce my position size.
However , what gave the conviction was that
1) Price bounced thrice form a round number support of 1.9000.
2) This formed a double bottom of sorts with macd divergence.
3) this level also confluenced nice with 2007 52weeks low.
As the overall d2d momentum was good, I entered 1 position on break of bullflag trendline.
a bullish day expansion was registered. I shifted to breakeven and have set the TP to ~1.92.
this was a good entry with good setup. Unfortunately I did not earn eventually as price hit BE and I did not tp earlier on.
Price contained nicely within this bearish price channel.
Looked into h4 and a double top ( almost) was in the process. My conviction to short was due to previous day of bearish engulfing, that ate up the previous day which was a bullish expansion day. Hence on today’s open I shorted with in mind to put my SL above the Double Top. I did not trade full size as I was conserving that if price should retrace higher I will add more.
Successfully took profit with the correct identification of this down swing.
What I did right : ED channel and nice observation of pivoting top.
Calling the top is a daunting affair.
However there are signs that this pair seems to e heavily resisted.
Coming to h4, I can see the 1234 has een completed.
There is now a right shoulder formed with a smaller 1234 as well.
Did well in this type of trade, and this is the type of trades that I want to keep repeating.
First saw Hang Seng struggling to break 25000 level with 52w resistance confluence.
Price eventually tested 25000 for a few times but could not break it.
As price came to week10. I saw gapping up as a chance to add in more entries.
Bearflag appearing on Monday. I held on to 25000 short positions, a very nice place to be shorting from.
TP1 reached 2 days later on week10 Wednesday when price reached the neckline.
Understanding the anatomy of chart patterns in relation to key levels has helped me to craft a very good trading plan. I can see how prices have been building up and know in relation how trades could have better entry n exit points.
I am also gradually forming up the type of price patterns that I am playing off: they are mainly right shoulder, or flag play.
Why did I used the title “Classic Edge” even when there was a losing position?
Started the week for GBPAUD with this H4T bullflag, slower entry than the rest of GBP, an hour of the strong GBP news.
However by Thursday things started to take a turn when price broke above multiday high but then flushed back to
form a multiday 1234 with macd divergence. Price then continued to complete a bearish day expansion.
This week I did not have much of good setups, but this was actually one of the solid ones on hindsight. I have only this to conclude that I should not fcuk around when my edges appear. Rather than choose to adhere to existing direction bias, it is best to be able to switch my inflexible and accept the strength of my ‘classic edge’ when it appears.
This is a correlation that I am interested to know more find out.
Currently I see differences between Wheat and Corn.
Looking to short wheat with trend continuation.
However I saw different things for Corn.
although Sl was clearly defined, eventually I could not bear to play this out, as I saw a shorting oppoturnity in wheat.
It has been a year of trading with commodities and I continue to learn new things everyday. This recent contrasting setup for Corn and Wheat made me want to analyse deeper onto the fundamental aspect of commodities as currently I have gained some insights in that commodities might not always be moving together.
I want to keep on repeating this type of winning trade. Winning feels good, especially with the right identified edges. They do not come often, but when they do, make it count.
identified TP levels was good and I got out with my desired pips and locked them in before it bounced up.
This was a good trade from cradle to grave and it exemplified that I had a very good set of price levels to structure my entry and exit levels on. I want to Keep repeating this type of trading thoughts and execution.