Welcome to another entry into my trading blog where I analyze markets and talk about the trades I take; including chart patterns, entries and exits. Today I did something that I’ve been wanting to do for a while, but never took the time to try. After a morning of not seeing much, I left the charts alone, worked on some other stuff, then revisited them in the afternoon.
I had already done my RSW in the morning, so I just stuck with the pairs I had already selected for the day; which is how I came across GBP/USD. Looking at the hourly chart, this pair had largely pushed down throughout the day; and when I got to the chart again in the afternoon, it was making a nice rally. It looked like a perfect bear rally to short in to, if the numbers were there.
I zoomed out to the 4h chart to find a target, and when I ended up setting my entry and stop, my R:R was over 3. It looked great. I set my entry with a trailing stop — with the strategy being that I’d let the trade manage itself overnight — and left it alone.
Entry
I set alerts to let me know when moves happened, and close to 9, I got the notification that my trade had triggered. I glanced at the charts and everything looked good, so I went to bed and didn’t worry about it.
Exit
I got up and checked my phone in the morning, and saw that my alert for “cancel this order” had been triggered, so I knew that price rallied after triggering me in to the trade. Last time I looked, thought, price was pushing in my favor so I knew it wasn’t a full loss, but I wasn’t sure where I got out.
When I checked my P/L, and subsequently the chart, I saw that price pushed to 1R, but that was about as far as it dropped before pushing back up, and my trailing stop triggered at, essentially, break even.
I had my overall bias on the direction of the trade from earlier in the day, the pattern looked really good and the R:R was great; so overall, I think this was a good trade. I like this strategy, too, so I thin next week I’m going to do my best to take time at the end of each day to look for overnight trading opportunities.
Thanks for reading! Let me know in the comments how you manage your trades and if you’d be comfortable leaving a trade overnight with a trailing stop. And stay tuned for more trades and market analysis.