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Whew, I haven’t traded for awhile huh?
As soon as I saw this setup, I had to jump on it. My backtesting has shown that once this setup occurs, there is a very good chance that price as hit a turning point.
There was a chopstick formation where there were two long wicked candles to the downside. This usually signals a move back up.
Therefore, I jumped in long, but I only took 1 position. The usual London trade rules call for two positions, setting the take profit on one at 20 pips and letting the second one run.
Why did I do this?
I thought about it for awhile and it was because I was a little gun shy from the previous losses. If I had taken this trade, I would have made a good 3%+ on the account.
What is the solution? More backtesting of course. I have been practicing this trade over and over to get more confidence to trade it better.
The result was only a +0.6% gain on the account. It should have been much more!!
Other Trades
The Counter Trend Trades have not been firing off on the other pairs lately, keeping me on the sidelines in GPBJPY, GBPCHF and USDCAD.
Hope you are trading well!
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