18 Aug 20210817 Trade Review DAX T1
Play: Failed Auction, Reversal at Value Edge
#fintwit #orderflow #daytrading #tradingreview #priceaction #chartreview #DAX #DE30 #DE30Cash
D1 supply was formed and the open sentiment was below value and within range. A continuation was possible. The M15 sideways I mistook for a consolidation with Bear Engulf finisher was merely sideways action. This coupled with the M30 long selling wick formation it was a very weak setup and thus a bad trading idea.
What hypo was it?
Return to value, value edge reversal or perhaps a Failed Auction probing value
How was the Entry?
Off a weak M15 Bear Engulf
How was the SL placement and sizing?
How was the profit target?
2R would have been easily reached at IB low as is in line with a Failed Auction. Although I would have taken 1.5R as there was LTF demand at IB low.
How was the Exit?
When M15 closed as a Bullish Inside Bar instead I decided to let the trade go on a bit longer as DAX can be sluggish or seemingly indecisive before going short. When there was no bearish transition on M30 and M15 closed as a Three Inside Up I closed the trade for ‑0.7R.
What would a price action-based exit have done for the trade?
What would a time-based exit have done for the trade?
What did I do well?
I did well to wait for price action to confirm me to cut the trade.
What could I have done better?
I could have better recognized the situation as a sideways movement instead of a consolidation. Due to price trading at value edge and a failure to close within as well was a close deeper into IBR made me think of a bearish sentiment at the time.
Equities and Frankie Fakeout can supercede the conditions of a value acceptance. More about that in my next trade review post.
Equities and Frankie Fakeout play that I will review in the next post.
TAGS: Below Value, Within Range, Moderate Imbalance, Value Edge Reversal,
Premarket prep on the day
Daily Report Card on the day