Forex Trading Journal, May 30th 2017

Again, no new entry signal presents today, so no new trade. I just reviewed the two open positions I am holding now, and so I need to make some trade management decisions.

Apart from pinbar, there is another kind of candlestick formation which I will pay serious attention to. That is the false breakout from an inside bar formation. When one or more bars formed entirely within the range of high and low of a previous "parent" bar, we called it an inside bar formation. Then, if a bar followed break-out from the range of the parent bar, but move back inside the range and close within, we can call it a false break-out (or fakey as Nial Fuller put it). According to my understanding, this type of formation can be considered as a strong signal if it appears near some important SR levels. The market will probably move toward the opposite direction of the break-out.

image taken from learntotradethemarket.com

USD/JPY

I entered a short position last Friday, at the beginning of the third last bar. That bar then become a parent bar. Today's bar break-out from the parent bar's range, but now moved back inside the range. I will wait until end of today (it will be 5am tomorrow morning at my location), if the bar close higher than the low of Friday's bar, I will close this trade and take whatever profit I can get.

USD/JPY captured at Wednesday 1530 UTC+8

AUD/USD

I entered this trade last Thursday, after a long tail pinbar formed at the end Wednesday. Now, seems that an even more obvious false break-out is forming. If today's bar ends up close within the range of Friday's bar (i.e. the third last bar), then I will close this position.

AUD/USD captured at Wednesday 1530 UTC+8

Open trades

All remains the same:

pairs	positon	entry price	stop loss	take profit	risk reward ratio
AUD/USD	short	0.74817	0.75267	0.73515	1:2.89
USD/JPY	short	111.767	112.254	110.659	1:2.28

P/L since May 24th: -2R

I make all my trading decision based on the daily chart. Most of the positions will be entered at the beginning of a new trading day. I am at the UTC+8 timezone.

I will continue posting and will assign the #ygernforex tag to every trading journals I write in the future. So you may click on this tag to have all my journals. Thank you for reading.