Yesterday was a pretty busy day. The markets were quite nervous because of the news concerning China import tariffs. I decided to trade all my trading levels despite this market uncertainty. The first trade I took was soon after the news about China’s tariffs hit the markets. There was a pretty strong selling activity on the USD/JPY and the price made it quickly to my long level. This level was based on the Trend Setup (Initiation Setup). Unfortunately, this sell-off was too aggressive and even the significant volume cluster you can see in the picture below wasn’t strong enough to hold and reverse the price. I took a -12 pip SL pretty quickly. After that, I wanted to enter a Reversal trade. This was a short from the same level I previously went long from (106.24). Unfortunately, the price reacted 2 pips sooner so my Reversal order didn’t get filled. For this reason, I discarded the Reversal trade. As you can see from the picture – if I hadn’t discarded the Reversal and took the trade with a limit order, when the price actually properly tested the level, it would have been a profit.
The second trade of the day was a short on the USD/CAD. This trade was also based on the Trend Setup. I use this setup when there is strong and aggressive buying/selling activity, in other words – a trend. Then I look for volume clusters within this trend. It is pretty clear from the picture below. This time the setup worked nicely and I took a quick +10 pips profit from this trade.
The third trade of the day was a short on the AUD/USD. This one was also based on the Trend Setup. There was an 8-9 pip reaction 3 pips below the level. I decided to be more aggressive and still take the trade despite the fact that the level got partly tested. In the end, this trade ended up as a losing trade. For this reason, I decided to take a long Reversal Trade (long trade from the exact price level I went short previously). I entered the reversal when the price returned back to the 0.7693 level and got a quick +10 pips profit from this one.
Another trade was on the EUR/USD. The idea behind my short level was a Rejection Setup. I trade this setup when there is a strong rejection of higher (or lower) prices. This time there was a pretty aggressive rejection of higher prices – which indicates strong and aggressive sellers. The heaviest volumes within this rejection got accumulated at 1.2305. When the price returned back to this level I went short from there and banked quick +10 pips profit.
The last two trades were on the USD/JPY. The first one was a short trade based on a Volume Accumulation setup. Pretty heavy volumes got accumulated throughout the week around 106,40-106,60. The POC of this heavy volume area was at 106.53. This being a really strong S/R zone I decided to go short from there. Surprisingly, there wasn’t any significant reaction to the level and the price went almost to my SL. In fact, I missed it by pure luck by just a few tenths of a pip. When the price returned to BE (106.53) I quit the trade and entered a Long Reversal Trade. The reason why I did this was: when buyers are that strong to push through weekly POC without any reaction, it is better to change your bias and go long with the strong buyers. This time I didn’t set up my PT to 10 pips but to 13. The reason was a failed auction at 106,65. When the price comes close to such area it tends to test above it. So for this reason, I placed my PT 1 pip above the failed auction (106.66). As you can see from the picture the Reversal worked nicely and I was able to get my +13 pips easily. Right now it seems that the buyers on the USD/JPY are actually pretty strong. They are pushing the price higher and higher without any significant pullbacks.
It was a pretty busy day yesterday. There was quite a lot of trades and lot of thinking needed during the session. I was commenting on all the trades as they went in my members’ forum so the members had a clear picture of what I was up to and what my thoughts were.
In the end, I finished up with 4 profits, 2 losses and 1 BE trade. Total pip count is +19 pips. I must say that Reversal Trades saved the day yesterday. Below are all the trades from my cTrader trading platform:
*P.S. I trade all my levels using my trading rules I fully describe here: Dale’s Trading Rules
*P.P.S. If you would like to learn & trade with me every day you are very welcome to join me here: Dale’s Private Trading Course