I am very happy with these weeks results and decided to exit my positions.
My reasons for exit were high volume bars with a narrow spread, signalling a lot of activity. This may result in a small term retracement to a recent negative order block on all 3 trades. I decided to take profits at these point and will watch again into next week to see if more Sell Set ups show up on these pairs.
One reason I am keeping my bullish USD stance is that the USD has been making a market maker buy model and has yet to complete.
Below is the chart.
This shows a market maker model which I have highlighted in a previous blog. Targets are for the USDX to reach 97.50 and then 98.30 potentially. The USD index shows the relative strength of the US Dollar and this is why I shall be keeping a bullish bias.
Reasons I closed trades
This is the reason why I closed Trades. As you can see a low spread candle formed with high wicks breaking the lows and the highs. This can also be known as a long legged doji. The volume was far greater than the previous bar. This much volume should have created a much larger down candle where we still bearish for the short term.
Instead this high volume indicated too us that something else was going on. The insiders were taking profit or buying up some of this pair. The falling volume on the 3-4 candles afterwards suggests that there is no interest to the upside yet and this is merely a retracement. Therefore I will be looking to re-enter the trade at the bearish order block we are approaching although this pair is ranging so I am slightly more catious so would like to see it hold first.
As you can see 3 hours after I entered the candle has quickly moved back to were I initially entered. This is why volume was a great warning sign to get out whilst profitable.
MYFXBOOK Results
Below are my fx book results for the week. I have taken 3 trades which were all profitable. My order sizes are very small and I have had to gain a fairly large 352 pips for 2.5% of my equity.
This is something I must work on. I should have been rewarded much greater in terms of percentage return for these trades. I must narrow my stop loss which means I can increase my order size whilst maintaining risk percentage. In doing this I should be able to double or triple and profits. The downsize to this is a greater chance of my stops being hit. This is a fine balance and the money management side of trading is the biggest factor in success or failure.
Below are my results:
I am nearly 50% on the way to reaching my target of 6% a month in week one and very happy with these results. I am just concerned I have to find such big moves each week and that is why it is important to work on tighter stops and greater lot sizes. If I can do this I should find reaching my 6% target much easier with the potential to exceed. 6% a month will double my account every year and this would be a fantastic return.
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