Took a counter trend short on GBP/USD which ended up in a loss. Although I don't normally trade counter trend, everything lined up for this one so I decided to take it. From a vsa perspective there was plenty of weakness in both the immediate, and more distant background. Also an RSI bearish divergence which is a really powerful leading indicator, as well as an inclining H&S pattern (which is more bearish then normal H&S). On top of that there was a positive news release that resulted in a negative reaction, and appears to have been sold heavily into on the most recent bars.
My stop was placed very safely above the high of a high volume upthrust, so I'm still scratching my head trying to figure out why this trade failed.
result: -25
Edit: as of writing this it appears that the bar that took me out is an ut, so I just re-entered short.
i am new to vsa ..could you share the indicator (mt4 platform)which is showing type of bars on the chart
ReplyDeleteI don't use indicators. All those labels are manually put in using judgment and a strong understanding of vsa.
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