I think everyone who has ever placed a trade as seen something happen that can only be described as “luck”.
Today, “luck” happened for me and without it, a losing trade would have been the result.
In the trading video below, you will see price extremely close to my stop. It was VERY difficult not to adjust the stop lower but that opens up a whole different can of worms.
Given the way the market was moving, even giving myself a bigger stop (which would have exceeded risk parameters) may not have made a difference and would have simply resulted in a larger loss.
Missed Trading Opportunity
A mini range had formed prior to my trade and the lower wicks showed buyers kept stepping in every time price was pushed down. You will see a solid line placed near the opening candle. Given the wicks that formed and the obvious desire for more upside (including an expanded range), I was looking for a break of the low wicks and price to be bought back up.
That would have been the entry.
And I missed it.
Even though it was obvious and was what I was looking for.
You will see a bearish candle form and the lows taken out. What’s no doubt below the wicks? Stops.
Who probably started to exit? Weak longs.
The reversal candle was sharp showing buying strength in the context of:
- Range low
- Minor support (wicks) taken out
- Pre-market up trend
Price rockets up and the intention for the entry was pre-breakout but I was slow on the draw and ended up buying the break. Never a fan of doing that as it could simply be a range expansion or slippage can occur.
What would have made today a little easier was if price had stayed near the top of the range after the opening push. The generally indicates further upside without the whipsaw we saw at the open.
Dowscalper course members probably recognized the trading opportunities as laid out in the modules.
Enjoy the scalping video!