This was the first trade of the week. Here is the 30 minute chart:
Click above to enlarge
This was a short stack with only 4 positions because I saw an opportunity to trade back to the closest daily pivot. In my backtesting, this is usually a pretty high probability trade.
There was also an opportunity to trade back to the daily pivot on the day that S3 was hit. I put those order in as well and will be documented in another post.
As soon as I saw the opportunity, I stacked my trades and waited for price to move up and hit my target. At the time, it looked like price would break the range and hit the target.
As you can see, price did break out of the range and opened all of the positions.
Price then proceeded to move against me about 95 pips. Here is what the trade looked like on the 5 minute chart:
Click above for larger image
I exited prematurely and took a -17.7% loss.
The lesson learned in this case was to let price move far enough away from the stack area before entering the orders. As you can see, soon after I exited, price turned around and hit the target.
Next time, I will wait for price to get near the bottom of the range before putting on the stack. This was a tough blow for the week, but the only thing to do is to just take the next trade.
In addition, I could have also exited a little earlier the first time the retest failed. That would have then given me the opportunity to set up the trade again and easily make back what I lost.
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