Risk control I thought was there but the trap and location read was wrong
Trap did not have enough confirmation given the buyers' location it occurred at
Traps do not occur right after consolidation! They emerge from the middle of a move
Consolidation break, consolidation reverse, consolidation reverse again is very rare
Overall flow read was correct
I was in a false state of confidence in this trade as my overall idea of trap and resumption of the move was very correct. So the flow and liquidity logic was very correct. And the news-driven move (BOE Retail Sales data) made me think I am capturing the trap swing.
But I did not wait for confirmation.
But the scale of the trap is what I underestimated
So whenever I anticipate a trap, I have to have high confidence in the scale of the trap.
But it is generally just safer to wait a bit for the consolidation when the location logic does not really align. And don't forget about where the trap emerges from.
Trade management was good once I realized my error
Trap did not have enough confirmation given the buyers' location it occurred at
Traps do not occur right after consolidation! They emerge from the middle of a move
Consolidation break, consolidation reverse, consolidation reverse again is very rare
Overall flow read was correct
I was in a false state of confidence in this trade as my overall idea of trap and resumption of the move was very correct. So the flow and liquidity logic was very correct. And the news-driven move (BOE Retail Sales data) made me think I am capturing the trap swing.
But I did not wait for confirmation.
But the scale of the trap is what I underestimated
So whenever I anticipate a trap, I have to have high confidence in the scale of the trap.
But it is generally just safer to wait a bit for the consolidation when the location logic does not really align. And don't forget about where the trap emerges from.
Trade management was good once I realized my error
Trade closed manually
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.