I don’t know why it still matters but the gf was here this morning when I got started working, she hadn’t left for work yet, so I did a very abridged version of RSW. In fact, the argument can be made that I didn’t do much RSW at all. I looked at the S&P (still down) and then looked at the baskets, but didn’t make any analysis of each, I just clicked through. I wasn’t seeing much that I liked — GBP looked weak but coming off of a rally, everything else seemed to be in the middle of a range, and I saw a lot of indecision — until I got to CHF which was pushing up yet again, making more new highs and looked strong. Since I did see what I interpreted to be weakness in GBP, I took a look at this chart
Unfortunately, when I did get to the chart, and looked down at the 1/5min charts, I saw that for the last couple of hours price had actually been pushing up. When I saw that, I thought back to the Corey Mitchell tweet about how markets move in both directions intraday, as well as the general thought process of “trade the market in front of you not the one you want” so I looked to take this long.
Entry – 1.10324
Price was basing after making a push up, which was another reason I wanted to look at this long, and I figured if I kept my pip-risk relatively low, I’d be okay. Another unfortunate thing was: I missed the 1 after the decimal in the price when I ran my R:R numbers, but fortunately I did it across the board, so while the pip numbers were off, the R:R was good. I set an entry order with a stop using my original numbers (missing the 1 after the decimal), so I got filled right away. I had to cancel and update my stop loss, too.
Entry – 1.10315
Target – 1.104
Stop – 1.1026
R:R – 1.55:1
Exit – 1.10325
With only a 5.5 pip risk, price hit 1R fairly quickly, so I was able to move my stop to break even before it pulled back and stopped me out. I think I got lucky with the exit of this trade, because I made a lot of mistakes with the entry. Well, I made one mistake, but it was early and important and messed up my entry. I think overall, this was just a bad trade. I need to be more patient and stick to the directions I originally pick/analyze — looking at the hourly chart right now, price re-tested a resistance area that was pretty strong earlier this week and has been pushing down since. I mentioned it before, too, I should be doing a top-down analysis with each trade as well.
