08 Jun 20210607 Trade Review GBPNZD
Play: Mean Reversion Failed Auction
#fintwit #orderflow #daytrading #tradingreview #priceaction #chartreview #GBPNZD
There was a large imbalance at the open (1.37xASR) below value, outside range. Price reached a D1 VWAP in UT level. H4 had made a prior DBD. Price extended lower in D before forming a Bullish Inside bar in E TPO closing slightly within IB. There was an old H4 demand nearby.
How was the Entry?
The entry was off a M15 consolidation after the M30 Bullish Inside Bar in E. This was okay. A little later this transitioned into a possible base on M30 with longer buying wick and H1 Bull Engulf above H1 demand.
Price started fading the auction deeper into IB testing a ledge in D left behind on the open TPO during G and printed one TPO above it now changing the DPOC into where the ledge was.
Price then pulled back down closing as a bear engulf but not taking out the weak buying tail in E.
EDIT: due to the ledge having been created within IB it is not of much significance. Summer time can also create some structure building around IB edges.
How was the SL placement and sizing?
SL placement was good as it was the standard size minus the spread placed below the formation (and low)
How was the profit target?
IB high was 2R but the LTF demand at IB high would have yielded 1.5R
How was the Exit?
Exit was not good. Even though there was a M30 Bear Engulf against my position it did not making a LL or even take out the weak buying tail in E and thus indicating more consolidation going on. Down ‑0.6R.
What would a price action-based exit have done for the trade?
1R (manual close due to capital preservation and late in the session)
What would a time-based exit have done for the trade?
0.5R, 1.5R in overlap noise to close at 0.8R.
What did I do well?
I did well to take the trade as I am trying to take more trades.
What could I have done better?
I could have recognized the M30 bear engulf as a consolidation rather than a directional move as price had not made a LL or taken out the weak buying tail
If price has consolidated a break needs to happen from its range (taking out high or low). In summer time can have a lot more slower auctions that build structure right at IB edges before finally moving away.
Large imbalance at the open within a prior H4 DBD could be cause for the creation for another H4 Base being developed. In this case through a Failed Auction at 2nd DTTZ.
TAGS: D1 VWAP in UT, Developing H4 Base, Trend is Up 3/3, Below Value, Outside Range, Large Imbalance, Ledge,
Premarket prep on the day
Daily Report Card on the day