This winning trade was a breakout trade under my trading strategies. I had been monitoring the USD/JPY chart for a number of days. The price action was contained within a relatively narrow range for a couple of weeks and I was looking to wait until the market participants had decided which way price action was going to move.
I had an initial bias that the price was going to breakout to the upside since the price action before entering the tight range had moved up with a series of higher highs and higher lows.
My trade plan was to enter this trade if it broke the previous rejected breakout attempts and my order was filled.
What did I do well?
- Patience to wait for a move
- Had spent the time to properly analyse the chart
The profit disclosed is included for full transparency. Will cover the losing trades above this in future blog posts.
What could I have done better?
- Not exited the trade when I did
- Not allowed emotion to take hold of me
- Only considered exit based on the time frame of chart I used to enter the trade
Before exiting the trade I was monitoring the chart on the 4 hour time frame not the daily. There had been a swing low that had got taken out which was an invalidation on the 4 hour but regardless of what the next few days hold for price I should not have exited.
What do others think, what else could I have done better?
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