The trade got stopped out. That is no problem. We were playing a faster timeframe in order to get into the daily bearish trend early. When you play a faster timeframe, this will happen. That is why the faster timeframe is for aggressive traders. Conservative traders will stay on the daily timeframe.
So let’s do our post analysis:
1. Kijun Sen and Price Relationship in 480 timeframe: See chart below. History does playing 480 timeframe is not best suited for long term trader. For example, on 5/15 price went below Kijun Sen and then continued on the trend. For scenerio’s such as this, two situations are possible. The first is where you take some profit at different support levels. The second is “let it ride” as planned. If you do that then you will lose some pip’s before a trend occurs. I choose to lose some pip instead of “watching” my charts everytime. I am willing to take some pip loss in order to get into the “big trend”. The daily i.e. “Big Picture” still shows bearish trend.
2. On the daily time frame, it shows we touched the top of the Kumo cloud and then bounced off the cloud. The cloud was thin so there was a high chance it was going right through it. However, a conservative trader would exit at the top of the Kumo cloud and enter below again. Going back to point 1, I am more of an agressive trader. Therefore, I stayed in.
One mistake is that I should cater this blog for both the conservative and the aggressive trader. As a result, I will give two possible targets in the future. One for aggressive and one for the conservative trader. This way, you can choose which profit target to take.
For EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .
Ichimoku: Currency: GBPUSD 5-23-07: Trade Exit