First bar showed selling at higher levels. Break of horizontal line would have created first short opportunity as whatever buying was there fizzled out.
Depending on where you had kept the SL, you would have been in trade the whole day (SL at day's high) or stopped out by 11.30am (SL at 6085F).
There were subsequently 3 more sell signals (2nd, 3rd and 4th circle).
The short trade would have stopped out at a profit around 6060F.
One important point here... suppose you get stopped out in loss in a trade. If the opposite (hypothetical) trade does not generate any profit, then chances are high the original first trade was right.
Another important point... being stopped out from the first short trade should have led to a long position. This was not considered as the long position would have been initiated near a level of strong selling.
Comments welcome.
Depending on where you had kept the SL, you would have been in trade the whole day (SL at day's high) or stopped out by 11.30am (SL at 6085F).
There were subsequently 3 more sell signals (2nd, 3rd and 4th circle).
The short trade would have stopped out at a profit around 6060F.
One important point here... suppose you get stopped out in loss in a trade. If the opposite (hypothetical) trade does not generate any profit, then chances are high the original first trade was right.
Another important point... being stopped out from the first short trade should have led to a long position. This was not considered as the long position would have been initiated near a level of strong selling.
Comments welcome.
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