ForexSpirit

When I pulled up the 1 hour chart to do my analysis this morning, what I saw made me think I should play the counter trend. Price had just broken out below the low of the day at 1.4170. Counter trend is the name of the game for me during the 6:00 EDT hour.

But my gut said differently today. It said to keep short. In times of conflict I’ll always go with my gut. My subconscious might not currently have all the knowledge and experience it needs but when it does I want to be able to trust it implicitly. That means going along with it as it learns.

Bias: short
Conviction: medium

I wanted to play it short on any touches of the 1.4170 level (which should now act as resistance).

When I was in with my first two entries on the purple sequence I was holding out for a test down to 1.4150. My persistence got the better of me. When the second attempt to push below 1.4160 faltered (at 6:22 EDT) I should have grabbed the 5 pips on offer for the averaged position.

As the third push failed at 6:26 EDT I knew that the odds were high for a move back up. I stubbornly held my ground; I thought about moving my SL to BE but reasoned that the 1.4170 resistance level was likely to hold.

I got a third entry on when the 1.4170 level was tested. In the end I was able to bank just over 3 pips on my 20:1 position.

In hindsight the only thing I would have changed about this morning was getting out for the 5 pips on offer for the first two entries. The third entry point would have been just as good for a first entry in a second sequence.

I didn’t want to enter any new trades for the remainder of the session as price was grinding higher highs, with a contracting triangle forming. I watched price for the first ten minutes of the 7:00 EDT hour as price did a small fake out short before bursting through the resistance line at 1.4171 and tearing up through 1.4180.