Update: Managing Risk, Waiting for Breakout
This trade has gone from over 50 pips in profit overnight to about 10 pips down during this London session. But that's the nature of trading reversals. In my second update I mentioned that a rally, was the most realistic scenario to expect today, and that's because you can see price found support at my first entry. That's really it for the negatives, no stop outs just yet, we're still in it. So...What are the pro's to justify staying in?
1. There's a breakout pattern at play, so even if price does go against me here, it will have to come down and consolidate just above or on the price line that it's been oscillating around since Monday. If it breaks below the price line then this trade will be comfortably back in profit. These breakout patterns are also my highest win rate set ups as well. Right around 80%. So I remain confident.
2. Price is sitting still. The market has failed to make a new high, which makes this a prime candidate for a double top, which favors a bearish reversal. The fact that price has stopped below my second entry gives me confidence advancing my stop loss. My exposure for this trade will now only be 1%, making this trade 6:1, if it hits my TP
3. New York sessions are often characterized by short term trend reversals. If price was going to break below the price line, it's going to happen between 8 am and noon. So that's something to look forward to!
We'll see what happens!
1. There's a breakout pattern at play, so even if price does go against me here, it will have to come down and consolidate just above or on the price line that it's been oscillating around since Monday. If it breaks below the price line then this trade will be comfortably back in profit. These breakout patterns are also my highest win rate set ups as well. Right around 80%. So I remain confident.
2. Price is sitting still. The market has failed to make a new high, which makes this a prime candidate for a double top, which favors a bearish reversal. The fact that price has stopped below my second entry gives me confidence advancing my stop loss. My exposure for this trade will now only be 1%, making this trade 6:1, if it hits my TP
3. New York sessions are often characterized by short term trend reversals. If price was going to break below the price line, it's going to happen between 8 am and noon. So that's something to look forward to!
We'll see what happens!
Comentarios:
Not liking what I'm seeing right now. At all. If price breaks the last high, I'm getting out.
Comentarios:
Things got ugly, but I kept my nerve!
