I like to share mistakes I committed in my last EUR/USD trade. My objective is get your views and reviews, and you don’t end up making same mistakes.
I was keeping tap on EURUSD pair for a while, During 1st round of French polls (24-April-2017 Macron being ahead) on Sunday, that resulted in Northern American AM trading session with 1600 pips gapping up, AND, I shorted,(and got humbled) . And price never came back
I am attaching my trade log picture, what a perfect 10 score! and yet my three shorts got me kicked in the butts!
I am humbled and stand corrected , I learned following lessons and discovered my mistakes.
1. French poll result event is having positive effect on Euro (because Macron’s political stand) and I branded this as novice gap (see my notes in snap shot)
2. I did wrong trend analysis during first trade on 24-April-2017, monthly, weekly trends were changing to Upside, however I got them monthly and weekly as down and daily up. but if you check now all time frames shows an unanimous and prominent uptrend.
Lesson learned : For monthly/weekly and daily trend analysis just look at last two candles to determine up down and sideways trend.
3. My stop loss were not good (ie big) enough (10% of Daily ATR or 10 pips whichever is big) was not applied.
4. There was a huge wick from my previous supply zone see Dec-8-2016 on Daily Time frame, huge wick.. My brain said that cant be true and ignored the odd wick ( open-1.0752 HI-1.0873,Close-1.0612)
5. The only saving grace, was my stop losses, helped to alleviate the pain, losses were negligible.
6. Wrong trend analysis lead to wrong scoring, and missed /ignored wick added fuel to fire.
Please let me know your take on this.