ForexSpirit

A little bit more action in the run-up to today’s trading session but nothing earth shattering. The long term trend is still long with a slow and steady up channel that started at the beginning of the Sydney session. The 5:00 EDT hour had a small pullback.

I reasoned there would be a bounce off the up channel’s trend line with maybe a test of 1.4250 on the cards. ForexLive had information that a barrier option was being defended at that level.

Bias: long
Conviction: medium

At the start of the 6:00 EDT hour my channel trend line was at 1.4226. Thus, when priced bounced back up from 1.4222 I went long (pink sequence) looking for a push back up into the channel. 1.4236 was a well defined support and resistance level from the past few hours. So when price failed to pierce it I got out.

My only regret of the day was not going long at 6:30 EDT when price broke north of the downward sloping micro channel. It had been my intention to do so. But once it actually made it up to 1.4231 I thought there was too much barb wire from the past ten minutes to make it worth taking. It was a missed opportunity. Maybe if I had more clearly defined where I would have averaged into the trade if things had gone against me I would have had more confidence in taking the initial trade.

Having missed the push up I turned my attention to trying to play a retrace from a test of the 1.4250 barrier. I got on two small short entries (as part of the blue sequence) and was holding them for a move down to the support level at 1.4236. As the 7:00 EDT hour approached I moved my SL level to BE and let the trade play out. My BE was hit and I was done for the day.

The 1.4236 level was eventually hit at 7:45 EDT after price had risen just a few more pips higher to 1.4246.