4H EMA12/26 are in down trend.
Entry: 8,500, 8,550
Stop: 8,755, 8,825
Target: 8,245
Yesterday I learned my lesson by trading against the trend, try to bottom fishing from 8,570 down to 8,400. All stop out at 8,240...
I was doing bottom fishing because on past 3 weeks, every 4H pull back is a long opportunity. So I think this pull back is another long opportunity (ignoring EMA12/26 death cross). And as it turned out, this time we had the real pull back. My order filled exactly when I shouldn't. This is what Mark Ritchie talked about in chap 3 of 'My Trading Bible', the crowd always wrong. How so? the crowd like me looked at chart and thinking 'every pull back on January is a long opportunity', and if enough traders out there are looking at the same chart and reached similar conclusion. Then it's almost certained to be wrong, because when majority people are buying the pull back, there is not enough people left to keep pushing the price up.
How to fix this mistake, again, stick to 4H trend. And not to guess how long the trend will last. The plan is to add position close to EMA12/26, short if in down trend, long if up. That's it, others are noises.
Entry: 8,500, 8,550
Stop: 8,755, 8,825
Target: 8,245
Yesterday I learned my lesson by trading against the trend, try to bottom fishing from 8,570 down to 8,400. All stop out at 8,240...
I was doing bottom fishing because on past 3 weeks, every 4H pull back is a long opportunity. So I think this pull back is another long opportunity (ignoring EMA12/26 death cross). And as it turned out, this time we had the real pull back. My order filled exactly when I shouldn't. This is what Mark Ritchie talked about in chap 3 of 'My Trading Bible', the crowd always wrong. How so? the crowd like me looked at chart and thinking 'every pull back on January is a long opportunity', and if enough traders out there are looking at the same chart and reached similar conclusion. Then it's almost certained to be wrong, because when majority people are buying the pull back, there is not enough people left to keep pushing the price up.
How to fix this mistake, again, stick to 4H trend. And not to guess how long the trend will last. The plan is to add position close to EMA12/26, short if in down trend, long if up. That's it, others are noises.
Trade closed: stop reached:
4H EMA12/26 golden crossed, trade closed.
Stop: 8,750