GBPJPY buy -10pips (22 Nov 2013 12pm GMT+8)

By | November 22, 2013

Just entered into a long GBPJPY trade.

  1.  2 leg pull back to the 20 ema and to the mid pivots (khaki dotted line) and VWAP line (khaki line)
  2. price then made higher low


 Update: took a 10 pip loss.

Shouldn’t have taken the trade.

  1. Price already had such a major run up and should at least retrace to the 55 EMA (green line).
  2. The higher low push was not urgent, and the bars were very narrow…indicating lack of interest.
  3. 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.
  4. 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’


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