Doing RSW this morning, JPY still looked like the best Short option, and CHF had pushed up strong and took out the highs from a couple of months ago — the strength from earlier this year appeared to be returning. When I got to this chart, it was up quite a bit, but on a bit of a pullback. I liked the pair to the upside, so I watched the 5min chart to find a place to get in.
Price pulled back for a couple of candles, getting to a support level from earlier this morning, Price started to push back up, so I set an entry order at the highs of the last down candle with a stop below that support level it stalled at. I like this to push up and make new highs, but there was a 2:1 R:R even to the recent highs.
Entry – 148.00
Target – 148.3
Stop – 147.85
R:R – 2:1
Entry – 148.01
Exit – 148.399
Price hovered between my entry and stop for a while — maybe 15 – 20 minutes, but eventually, started pushing up. It hit 1R, I moved my stop to break even, and it started pushing up again. It based a little around the resistance area, the area my take profit was near, and since I’m sitting here actively managing the trade, I took off the take profit. Price did push through that resistance area pretty strong, so I started trailing my stop loss along the SAR on the 1min chart. Eventually, price slowed down and hit my stop for a nice ~40 pip profit
I feel like this may not be a strategy that I’ve necessarily practiced or put onto paper, so I’m somewhat conflicted about it, but I had a definite set of rules I followed and reasons that I entered the trade. I’m more of a hybrid trader, so bending my rules a bit is in my rules. I’ve done enough research and watched enough videos and have actively traded long enough that I need to trust my instincts more, and this feels like I did.
That said, every time I make a trade I still don’t know what will happen, so while this was great, don’t get caught up thinking you “know” where things are headed at any given time, and realize that this was a nice win that took out a few of my losses — and I need more of these, but that’s exactly how trading goes: Nice wins that take out my small losses. I think more days like today — where I trust my instincts and don’t let my emotions get too involved — will result in success.