Tonight we get to see how a losing trade progressed. I saw a valid signal, though not as high as I would like but price had made a higher high and still had just barely touched the RSI(14) 70 level. This is what I term divergence and usually a pretty solid signal. Price moved against me to -12 at one point. No big deal.
Price has now moved back in my favor to about +4:
Price has now moved back into negative territory and I'm beginning to feel it may be a failed signal:
I've annotated where I exited the trade as price broke back above the previous high, but not as high as my stop loss. I thought I should cut my losses at this point. Well, I was wrong as price turned around and came back down into profits again where it is as I write this post.
I made a couple of errors in this trade that brought it from a winner to a loser. One is I was unprepared to trade AUD/USD. I didn't know where the pivots or nearby high/lows. The other is I didn't stay with my stop loss. Had I stayed with the original stop, I would be in profits by about +10 pips as I write. There is always a lesson to be learned in the markets.
Price has now moved back in my favor to about +4:
Price has now moved back into negative territory and I'm beginning to feel it may be a failed signal:
I've annotated where I exited the trade as price broke back above the previous high, but not as high as my stop loss. I thought I should cut my losses at this point. Well, I was wrong as price turned around and came back down into profits again where it is as I write this post.
I made a couple of errors in this trade that brought it from a winner to a loser. One is I was unprepared to trade AUD/USD. I didn't know where the pivots or nearby high/lows. The other is I didn't stay with my stop loss. Had I stayed with the original stop, I would be in profits by about +10 pips as I write. There is always a lesson to be learned in the markets.
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