Here is another short stacked Counter Trend Trade. Price flew through the daily R3 level and set up a signal to trade back to the daily pivot on the day that R3 was hit and also the daily pivot on the next day. This is the next day setup.
Click here to enlarge
The target was just above the daily pivot of the day after R3 was hit. this was a small stack box, but unlike my previous GBPJPY trade, I waited until price tested the previous resistance level before putting in the orders.
This allowed me to catch it on the way down instead of having the first few orders entered and weathering the huge retracement.
The target was hit soon after the resistance level was tested, giving me a +1.9% gain on the account.
Although the target was hit perfectly, this still resulted in a very small gain in the account. This was the result of trading a slightly smaller lot size than usual. I traded this smaller lot size because I was still a little shell shocked from the GBPJPY trade that went awry earlier.
In the future, I think I should either take the trade in a demo account or trade the full lot size. Getting a less than acceptable return is almost as bad as having a loser. I may change my mind on this later, but this is what I am sticking to right now.
Here is the 1 minute chart to show the micro swings:
Click here to enlarge
In conclusion, this was a pretty good trade. On to the next one!
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