As usual, I like to analyzed my failed trades. These are great case studies, and one can learn a lot from them.
Before I enter any new trades, I would try to see if there are any "problem areas" that could potentially derail my trades. I obviously did not find any on the 4 hr chart.
When I zoomed down to hourly chart however, I saw that the 6300 level is an important level in this timeframe. Before the trade was taken, this area had been tested 3 times - making this a pretty important area.
And so, it's not really a surprise to see my position got bounced off again (for the 4th time!) from the 6300 area.
In the end, a lower TF S&R, if it has confluence with a round number, is certainly capable to be a show-stopper!
This was indeed, an interesting observation. I will take note of this in my future trades.
Posts
No comments:
Post a Comment