Since the beginning of the week I had this daily level of resistance on my radar to get involve on the short side on this pair. With post-market analysis yesterday I spotted the bearish BAT pattern and had order placed before I went to bed.
As I go through my pre-market analysis this morning, I noticed a few things on this pair :
- first my pending order on the BAT has not been filled yet (came 0,5 pip from my order)
- then the DT jumped out in my face : controlling that we did not put a H3C above the last NSH, and that I had RSI oversold on the NSH + RSI divergence now, the DT is a valid one according to my rules.
In the past I would have struggled into deciding what to do : should I short at market the DT or wait for the BAT. But as I have extensive rules, my trading plan says that in this case I HAVE to take the first pattern to complete. The DT being the first one to complete (it's still at market) I only needed to check the risk-reward to see if I can take it at market or if I need to place a pending order a bit higher. Turns out I can take it directly at market.
So I'm short this pair on the DT pattern. And if markets decides to stop me out the DT, I have pending orders for the BAT right above my DT stop (the BAT will still be a valid one according to my rules if I'm stopped out the DT).
Having rules takes the emotions out of your decision process and helps you keep your head cold when this kind of situation happens having a plan helping you and actually deciding for you what to do (and if a rule for a specific case is missing, then make one and stick to it!).
Have a great friday folks! (and follow me on social medias, links in my bio)
As I go through my pre-market analysis this morning, I noticed a few things on this pair :
- first my pending order on the BAT has not been filled yet (came 0,5 pip from my order)
- then the DT jumped out in my face : controlling that we did not put a H3C above the last NSH, and that I had RSI oversold on the NSH + RSI divergence now, the DT is a valid one according to my rules.
In the past I would have struggled into deciding what to do : should I short at market the DT or wait for the BAT. But as I have extensive rules, my trading plan says that in this case I HAVE to take the first pattern to complete. The DT being the first one to complete (it's still at market) I only needed to check the risk-reward to see if I can take it at market or if I need to place a pending order a bit higher. Turns out I can take it directly at market.
So I'm short this pair on the DT pattern. And if markets decides to stop me out the DT, I have pending orders for the BAT right above my DT stop (the BAT will still be a valid one according to my rules if I'm stopped out the DT).
Having rules takes the emotions out of your decision process and helps you keep your head cold when this kind of situation happens having a plan helping you and actually deciding for you what to do (and if a rule for a specific case is missing, then make one and stick to it!).
Have a great friday folks! (and follow me on social medias, links in my bio)
Trade active
Trade active:
Stopped out the DT (-35 pips) filled the bearish BAT
Trade closed: stop reached:
And stopped out the Bearish BAT (-31 pips)