Initial Risk: -18 Result: -10
MTM (pg. 35) - "Any testing that does not respond immediatly with higher prices, can be considered an indication of weakness"
Sunday, July 31, 2011
mon, july, 25, 2011 GBP/USD
I went long after a test in a rising market on a line of support with my stop just below the test. The next bar was a clear ND showing that there was no result from the test a sign of weakness, so I decided to close the position.
Initial Risk: -18 Result: -10
MTM (pg.159) - "If the market drifts sideways and does not respond to the sign of strength, then we must assume the market is still showing residual weakness. A successful test Is a sign of strength that shows that selling (supply) has disappeared from the market"
MTM (pg. 35) - "Any testing that does not respond immediatly with higher prices, can be considered an indication of weakness"
Initial Risk: -18 Result: -10
MTM (pg. 35) - "Any testing that does not respond immediatly with higher prices, can be considered an indication of weakness"
Subscribe to:
Post Comments (Atom)
Hey man,
ReplyDeleteIs all the yellow writing on the chart stuff you've annotated or is it an indicator?
My opinion for this trade was that you were entering too high with possible selling in the widespread bars to the left. I'm not sure where you're based but it's also a really low liquidity period where in my opinion VSA can become a little useless.
Keep the charts coming,
Liam
all the writing on the chart is by me. I find it very helpful because when you come back to the chart after being away you don't have to reanalyze everything again.
ReplyDeleteyou're right about the TOD thing, but the trend was up and although there was some weakness in the background my sentiment was still bullish because of the strong upward momentum. That test was very clear and I calculated that my RR would have been at least 1:6+ at nearest resistance and WAY more if it broke out. I was planning to move to break even when it hit the resistance, and hopefully catch a rally. The serious SOW did not come until AFTER the test failed. If the same setup occurred again I would take it without hesitating.