The GBP has been playing games with my trading setups this week. A short play that triggered in, stopped out and then dropped hard to my target. A long play that had the entry price missed by a mere handful of pips. When price came back again to the area, again, price hovered above my entry and then rallied. I removed the order and sure enough, price came back a third time, dropped 3 pips BELOW my entry and then rallied. Crazy huh? Sound hard to believe? Check out the last two blog posts.
http://www.atradingplan.com/general/to-chase-or-not-to-chase/
http://www.atradingplan.com/suppy-and-demand/best-laid-plans/
Redemption was at hand. The last rally up was heading towards an area I identified as a low risk short opportunity. With an 18 pip risk and over 100 pip target, I set the pending order…and waited. About 3 hours later, my trade triggered in, dropped hard where it was closed for over 100 pips of profit. This certainly made up for the earlier short that stopped me out. Check out the video below.
