Thursday 28 March 2013

Learning by missing entries

I'm  demo trading now for more than a year now. It is about 15 months to be specific. Now I think I'm starting to understand more and more each day. I'll have to diversify my trading pairs. I've looked today several pairs. Let me show what I've found so far.

AUD/USD pair, 30 min time frame, using 50 SMA & CCI, I found that, trend was bullish. So basically long entry should be looked for. I missed 3 entries in last couple of days. Today price is reversing and here also I missed a trade.
Figure 01: AUDUSD 30m chart
Before reversing pirce gave a week long signal. I took it when, CCI came above -100 from below, stoch came out of oversold area. I got 6 pips there. CCI along with 50 SMA give good trade signal.

After this long trade, price started to give a short signal. As it was bullish trend, I stayed away from entering short trade.
Figure 02: AUDUSD 30m chart
Look I marked the short entry points. But I didn't understand that this short term trend was reversing here. Daily and weekly trend is somewhat sideways though.

Now XAUUSD, 1H time frame, supply-demand area, CCI and 50 EMA. In a bearish trend price was in a demand area, CCI came down from overbought area. I took the short entry.
Figure 03: XAUUSD 1H chart
I grabbed here 24 pips. As price reache the oversold area and it was about to trun back, I came out quickly. Here I entered into the trade when price came out of the supply area.

Next I traded USDJPY pair in 1H chart. Here supply-demand area and stoch. Price was revisiting a demand area and stoch was nearing the oversold area. I put a limit buy order which was activated nicely by the wick of a bull candle.
Figure 04: USDJPY 1H chart
This bounce from demand area was slightly above the 61.8 pivot level. So there was various reason for the long entry. But I missed the trend. It was in a down trend.
Figure 05: USDJPY 1H chart
Look, 200 EMA, upper supply area and upper line of a bear channel all met a point where price bounced above with stoch in the overbought area. So I think it was an ideal short trade which I missed and entered into the long trade.
Figure 06: USDJPY 1H chart
I got out of this wrong trade with 12 pips.

So total : 6+24+12=42 pips.

This is for today.

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