10 Jun 20210609 Trade Review GBPNZD
Play: Mean Reversion Failed Auction
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D1 Bull Engulf formed previous day trading right into D1 Supply. In premarket price traded higher towards W1 C‑sup leaving behind a buying wick. London opened 0.9xASR Above Value, Outside Range indicating a large imbalance. Price extended up during C but failed to close above IB and Asia high. Price then proceeded to trade higher in D closing slightly above IB but still not above Asia high. With the round number of 1.97000 right above, combined with W1 C‑sup, there could be a pop for the round number before failing auction.
E then had a little pop and closed as a Bearish Inside Bar, M15 Bear Engulf. H1 having a weak RBR closing below H4 QHi.
How was the Entry?
Entry was good off the M30 Bearish Inside Bar and retest of M15 Bear Engulf C‑sup.
How was the SL placement and sizing?
Due to the small profit target because of the tighter IBR a smaller SL was used of 15 pips. With IBR being 19 pips I could have had a tighter stop but I will try and tighten this up for next time. SL was above formation which was good.
How was the profit target?
Profit target at IB low was 1.2R but if I had scaled my SL better this could have been closer to 2R. Will work on this skill going forward.
How was the Exit?
The exit was good. Didn’t wanna be a dick for tick and with LTF demand right at IB low I choose to cut it 2 pips above for 1R.
What would a price action-based exit have done for the trade?
I took a PA-based exit. 1R.
What would a time-based exit have done for the trade?
What did I do well?
I did well to understand the narrative and stick with the trade.
What could I have done better?
I could have decided fully on my own to get into the trade based on the Bearish Inside Bar. But as I was visualizing a M30 Bear Engulf I hesitated to get into the trade. Then with a nudge from Dee I still went in.
Large imbalance to failed auction = H4 developing base.
TAGS: Developing H4 Base, Trend is UP 3/3, Above Value, Outside Range, Large Imbalance, Round number popped, 2nd Chance Entry, M15 2nd Chance Entry,
Premarket prep on the day
Daily Report Card on the day