Monday 9 December 2013

Incorrect Focus

Price had made a series of LHs so I was initially looking for shorts, this was until price broke the LT DWTL (1). This indicated trend weakness and my bias changed to longs from this point but I had to wait (patiently) for the correct action to unfold (it was either going to range or reverse). Price put in a W bottom I was thinking of buying around 1.37 (2 above a tall bull /failed L1), but felt it was a little early (this was probably the correct entry but I was being too careful).  Once price made the HH (at 3) the trend had definitely reversed and I was waiting for a PB entry. I then missed the perfect entry (4) because I was too caught up with waiting for a PB to the 20EMA (just like JMF3 said to avoid EMA bias in http://eurusdtradejournal.blogspot.co.uk/2013/11/informed-observation-correct.html comment, duh?!) and I was preoccupied sorting out a new tenancy agreement for a flat I rent out.

1. DWTL BO =  trend weakness
2. W bottomMissed Long entry =  thinking of getting long above it's highs where a lot of bear stops would likely be placed  from the i bar short from the following bar. good trade
3. initial HH =  trend reversal
4. PB H1 entry long good trade



SUMMARY
This was actually a very good read but...
Not entering on the failed H1 (2) was stupid.  But at least I recognized this as an entry (this is an improvement!) The other two issues (20EMA bias and focus on flat rather than trading) are entirely my fault. 1. I should have removed the 20EMA days ago and 2. I could have got the flat sorted over the weekend,  despit being ill this is pretty easy work!

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