Risk control not there; location and steepness of trend analysis was missing
Angle of trend analysis is a key thing to incorporate and consider along with horizontal
location logic; maybe a reversion to HTF trend angle would correspond to a reversion to the mean...
Trap was there; interesting: There was a trap on the opposing side as well and this reaction was going against that. But I thought because the reaction was sharp and originated from a logical location, it implied a sharp trap move was being nullified by another sharp trap move occurring from a logical area. Especially since the opposing trap move DID NOT ACHIEVE ANYTHING in terms of a break (LL or HH).
But considering again, on the HTF, the flow logic is not there; there is a liquidity sweep on the downside that is likely.
And this reminds me of another principle: the trap originations MUST emerge from an extreme break. Given the trap on the opposing side, which did emerge from an extreme break, I think the current sharp move I was trying to capture itself is a false reaction trap. So I actually expect this trade to NOT work next week.
Trade management was good to get out at close to entry; exited to avoid the weekend gap. And maybe because I had some internal doubts anyway.
Psychology wise, I still waited a bit to get out at a small profit (not playing the market but playing my P&L)
Angle of trend analysis is a key thing to incorporate and consider along with horizontal
location logic; maybe a reversion to HTF trend angle would correspond to a reversion to the mean...
Trap was there; interesting: There was a trap on the opposing side as well and this reaction was going against that. But I thought because the reaction was sharp and originated from a logical location, it implied a sharp trap move was being nullified by another sharp trap move occurring from a logical area. Especially since the opposing trap move DID NOT ACHIEVE ANYTHING in terms of a break (LL or HH).
But considering again, on the HTF, the flow logic is not there; there is a liquidity sweep on the downside that is likely.
And this reminds me of another principle: the trap originations MUST emerge from an extreme break. Given the trap on the opposing side, which did emerge from an extreme break, I think the current sharp move I was trying to capture itself is a false reaction trap. So I actually expect this trade to NOT work next week.
Trade management was good to get out at close to entry; exited to avoid the weekend gap. And maybe because I had some internal doubts anyway.
Psychology wise, I still waited a bit to get out at a small profit (not playing the market but playing my P&L)
Trade closed manually
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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.