lukx zline trading log + cfabian p.35 + adaseb p.48

[MightyOne]

EUR/USD long

Exited early because of double top areas are normally reversals points
when I try to trade the break out

I do not understand your logic.

If a double top, according to your analysis, is a sign of a possible reversal then why go long at all?

If you do defy that analysis (because you are using another?) and go long then for what reason are you selling out early?
The reason cannot be the double top that you disregarded in the first place.

[MightyOne]

Nice one INXS,
I actually got screwed in this trade. I didn't take that long as was afraid going long after soo much short momentum. Thus decided to wait for a retrace to go short.... and I did, and daang, SL hit.

In the image, I shorted at the yellow line after the circled wick was formed. That wick created a lower high plus the small candle body (almost doji), so jumped in and got nailed. Ohh, how frustrated I am some times. With this trade (and the cumulative losers) I ended up loosing all year's profits.

What was your reference point it was a reversal (or start of retrace)?

Cheers

Here is a few trades from today.

Check your daily chart:

[adaseb]

[adaseb]

[adaseb]

[aliassmith]

EUR/USD long

Exited early because of double top areas are normally reversals points
when I try to trade the break out

I do not understand your logic.

If a double top, according to your analysis, is a sign of a possible reversal then why go long at all?

If you do defy that analysis (because you are using another?) and go long then for what reason are you selling out early?
The reason cannot be the double top that you disregarded in the first place.

I have noticed that after the MoMo candle the price would go only to
the extreme of the MoMo candle then reverse. I have been "tricked"
a few times in the recent past with the false breakouts.

I felt there was still ample pips to be had before the reversal.

[MightyOne]

EUR/USD long

Exited early because of double top areas are normally reversals points
when I try to trade the break out

I do not understand your logic.

If a double top, according to your analysis, is a sign of a possible reversal then why go long at all?

If you do defy that analysis (because you are using another?) and go long then for what reason are you selling out early?
The reason cannot be the double top that you disregarded in the first place.

I have noticed that after the MoMo candle the price would go only to
the extreme of the MoMo candle then reverse. I have been "tricked"
a few times in the recent past with the false breakouts.

I felt there was still ample pips to be had before the reversal.

Bodies show the way...

Momo should unfold in an X-Y-X-Y pattern on some level...

Wicks show the way not (possible reversal) when, after momo, there is a breakout and price fails to close beyond the extreme (hedge).

I think that you may be using momo at the most basic level and on small charts (sub 4H charts) where this type of analysis begins to lose value.

If you did not have a trading account would you mentally exit for 19 pips or would you find some technical reason to exit?

How you would trade with paper charts and a pencil is how you should trade live.

[TheRumpledOne]

Not sure why you say the rat would have been chopped.

RED RAT REVERSAL - SHORT ENTRY CRITERIA:
1) GREEN CANDLE CLOSES
2) RED CANDLE CLOSES
3) PRICE TOUCHES LOW OF PREVIOUS RED CANDLE - ENTER SHORT. STOP LOSS IS ALWAYS 10 PIPS.

One thing to note is when trading GBPJPY aka THE BEAST, you have to adjust the triggers because of the spread and volatility.

[TheRumpledOne]

I don't see any problems for the RED RAT.

[adaseb]

How do you label the X's and Y's?

Do they alternate when the candle stick color is the same. Such as when price was headed down for a few days on the daily, you had X then Y then X then Y.

I am confused how you labeled the X and Y during that short uptrend from Dec 29th.

Do you start with an X and if the following candlestick closes higher/lower than the preceeding then that is label Y unless the candlestick color is the same color as the preceding candlestick?

EUR/USD long

Exited early because of double top areas are normally reversals points
when I try to trade the break out

I do not understand your logic.

If a double top, according to your analysis, is a sign of a possible reversal then why go long at all?

If you do defy that analysis (because you are using another?) and go long then for what reason are you selling out early?
The reason cannot be the double top that you disregarded in the first place.

I have noticed that after the MoMo candle the price would go only to
the extreme of the MoMo candle then reverse. I have been "tricked"
a few times in the recent past with the false breakouts.

I felt there was still ample pips to be had before the reversal.

Bodies show the way...

Momo should unfold in an X-Y-X-Y pattern on some level...

Wicks show the way not (possible reversal) when, after momo, there is a breakout and price fails to close beyond the extreme (hedge).

I think that you may be using momo at the most basic level and on small charts (sub 4H charts) where this type of analysis begins to lose value.

If you did not have a trading account would you mentally exit for 19 pips or would you find some technical reason to exit?

How you would trade with paper charts and a pencil is how you should trade live.