A rather frustrating mornings trading today; ruined by a false break out on GBPJPY. Coupled with the fact that I got my trade size wrong made the trade doubly costly. I made some equity back on a couple of snapper trades chasing the EUR and GBP Dollar retraces, which was good to see that strategy paying off and well in profit this week.
Today I have posted my GBPJPY trade that didn’t go my way – can’t just post the good stuff now can I ?
The setup looked clean enough, with price testing resistance at 142.25 since earlier in the day. I went for a simple 25 pips short as that was the width of the channel the price had been sitting in – seemed a reasonable enough trade to take. I could have argued that on the higher timeframe charts that the price was well extended from the EMA’s and maybe unlikely to fall more until after a retrace – lovely thing hindsight.
Forex charts are like a Rolf Harris (RIP) sketch – you don’t know what they tell you until the last few dabs of the paintbrush
Well here it is : the fake break out on GBPJPY this morning.
Lesson of the day : Don’t trade the breakout, trade the retrace after the breakout has been confirmed !