Just entered into a long GBPJPY trade.
- 2 leg pull back to the 20 ema and to the mid pivots (khaki dotted line) and VWAP line (khaki line)
- price then made higher low
Update: took a 10 pip loss.
Shouldn’t have taken the trade.
- Price already had such a major run up and should at least retrace to the 55 EMA (green line).
- The higher low push was not urgent, and the bars were very narrow…indicating lack of interest.
- There was no realistic target in sight – the next resistance was 85pips away, while my risk was 15pips. 5.6 risk reward ratio?? no way the market is going to give you that.
- My normal trades only last 2 to 6 bars. Given that the market has to travel 85pips to hit my target, it would already bust my ‘time limit of 2 to 6 bars’
