ForexSpirit

Another day of two halves. Same pattern as last time too. Did well the first half. Had a game plan, calm, collected. Then patience went out the window, to be replaced by indecision and greed. Which led to things inevitably spiralling out of control.

My pre-session analysis centered around the breakout south that occurred at the start of the London session. 1.3860 was breached on the third attempt. Price rebounded before reaching 1.3800.

I identified 1.3860 as prior support that would now be a resistance level worth watching. Ideally I would want price to continue retracing up to 1.3860 and look to play it short from there.

Bias: short
Conviction: medium

Price did not get to retest that resistance level at 1.3860. Instead it just bumped up against the short term high at 1.3850 before breaking out to the bottom of the range since 4:00 EST.

My first sequence (in green) worked out well. I played the short breakout, mainly jumping on board due to the smooth nature of the move down. If it bounced I would be out at BE. I held the short until I saw the three touches and the failure to break below 1.3824.

Three touches of a support or resistance line is normally a heads up to me that price can’t push through and a reversal might be on the cards. If was at this point that I started thinking that I should maybe start looking for long positions.

When price did break the 1.3824 support level I jumped in. The end of this red sequence is where things started to spiral out of control. I was becoming indecisive. The breakout was a failure. Shouldn’t I really be long now? I bailed out at the resistance level of the prior range. Worse place to get out. I was playing the edges as a loser. But I wasn’t thinking like this at the time. Instead I was just thinking that I should be long now. So I got long (blue sequence). When I realised that I had just gone long at a resistance level and that maybe I was premature I bailed. A slight redemption and a correct decision.

Except instead of recognising that I didn’t really have a new game plan I just let myself be carried along by price. Price went up so I put back on a long (orange sequence). My bias was long now so bump up the gearing ratio. Only price goes immediately against me back into barbed wire territory. Not good. Bail on that one.

My bias was short at the beginning, I should stick to that. So I switch back to short and just jump. Purple is just a pure revenge trade sequence.

And the cherry on top is that I had the opportunity to exit the purple sequence at BE at around 7:05 EST, but I wanted to grab just one pip of profit so I let it slip away. Once it went back into the red I pretty much gave up on it. I had my SL and TP levels in place so I got up and just let it ride. My emotional control was shot. The correct thing to have done here was just cut it. Cut it. Cut it.