Despite ending the week 2R down, this was a pretty positive week. I say this because other than the 2 setups taken this week, the Trading Room had several missed setups that ended in profit, including 2 from EURJPY. However, the purpose of our Week in Reviews are to review setups taken, not missed. We will probably compile missed setups and post them in the future (hopefully not many).
The first setup we took this week was a short on EURUSD. The reason for this was because price had just broken out of an expanding wedge and was coming up to retest it. This gave me an opportunity to short if it had reached resistance, and that’s where I had my entry. You can see in the second image that I more or less had a perfect entry and I thought it was going to be a profitable setup. However, price came back up to form a higher high, before reversing right at my stop loss. Call me the king of to-the-tick stopouts, because it’s not easy to pick out levels like that (unfortunately).
The second and last trade I took this week was a short on USDCAD. This was a supply zone setup and the plan was to wait for price to enter the zone before setting a sell stop below it. My stop loss went above the zone and I was targeting 100 pips, giving me a decent risk/reward of 2.86.
As you can see, price consolidated around the supply zone for a while, before fundamentals spiked both ways and stopped me out. This setup failed because price took a bit too long before returning to the zone. I usually like to make sure that price reaches zones within a day and a half max. Starting the month with a loss but still staying positive because this was still a decent week. The Trading Room has been going through a rough three weeks but this is the nature of the business. Just have to stick to the plan and grind the bad times out and we’ll be back to wining ways.
Psst…we’ll even throw in a discount to get you started!