Hey everyone, sorry I haven’t been on much, I’m actually working out of town for two weeks, and I haven’t had too much time to trade. I’ve been working 13 hour days and I will be for 14 days straight. I’ll still post a bit when time allows. Today I will talk about trades I took yesterday. As you remember from my last post I’m trying a new strategy out that is easy for me to understand. Anyways, I noticed price was in a downward trend for quite some time, and around 6pm here, price made a dramatic drop and came back up. So I placed a fibo and watched to see what price was going to do. I use Fibonacci retracements occasionally if I see that it may be useful. So I waited for price to rise up and get near some levels as well as satisfy my strategy requirements. Price came up and hit the 50 level, and I must confess I jumped the gun and took a put trade before the candle closed, and naturally it was OTM, because I didn’t follow my rules. So after that loss, I waited for it to move up to the 61.8 level and I watched how price reacted around this level, it touched it once and immediately dropped around and hovered, here the bears were taking charge temporarily.
Another thing to note is looking in the past, this level was a previous support level, now functioning as a resistance level. My timing indicator also was 108 level (previously it was just the 8 level, but I got an updated indicator) which was also signaling an overbought situation. All of these things combined gave me confidence to enter the trade with a put, and it was ITM. One thing I hate about the Asian session is it’s so slow, I get very bored staring at charts that where price doesn’t do much for several hours, but that’s part of it! My third trade was on Gold, just mainly looking at other assets to see how my strategy performed with them. I really like this strategy as its very easy for me to understand, but I still need to only pick the best trades, and try to follow my rules ALWAYS, which is actually hard to do believe it or not. I will post again next week sometime as my job permits, sometimes I’m too tired after work. Feel free to ask any questions!