Basic Details Of The Setup
I have spotted an inside bar on 29th October 2019.
There is no specific trend for EUR/USD. From Chart 1, I can see that the market is moving upward and currently retraces toward the key support level at 1.1075. This level appears consistently since July 2019. An inside bar formed near the key level. In that case, I have to open 2 pending orders.
The mother bar detail:
Range: 50 pips (At the border of PIDS criteria of 50-100)
I proceeded anyway.
The lot size = $140/50 = 2.8 Lot
The 2 pending orders are:
Buy Stop 2.8 Lot @ 1.1123, SL: 1.1073, TP: 1.1223
Sell Stop 2.8 Lot @ 1.1073, SL: 1.1123, TP: 1.0973
Progress Of The Orders
Day 1: 29th October 2019
The sell stop order has been fulfilled and I have closed the buy stop order. The market is a little bit strange. The price has hit our sell stop order and did not move even 1 pip more downward. Instead, it has gone upward vigorously. The day ended by leaving me with 10 more pips before hitting the stop loss.
Day 2: 30th October 2019
The position closed in a loss. Regretfully this is a super short trade. I will review the requirement of the mother bar range because I feel that 50 pips are not enough to give the trade a room to play.
Overview Of The Setup
Check this out. It is a better chart. Please leave me a comment.
The only conclusion I want to make here is the range of the mother bar. I will amend the requirement of the mother bar. This is not the first time I lost within 1 day. The other time was on 16th October 2019 EU.
I have also reviewed all other losing trades. Most of them can be avoided if the requirement of the mother bar range is between 70-100.
This is a good loss because it shows me what is not right.
Talk to you soon.