Thursday, July 12, 2018

Do Not Fight The Super Strong Trend

I already doubt to trade GBPJPY at the first place. The volatility and directional power in this pairs is very dangerous. I take my chance at red rectangle setup. It is way beyond the R100 and candle looks stall. The downside is ADX is keep rising near the super strong threshold and the RSI not yet enter the overbought zone.

On another note the harmonic pattern is not really in a Right Ratio. But I saw many times the defected pattern still turned out to become profitable.

Next setup is at R138 line and also a sweet spot AB=CD pattern shown by the white line. Price retrace a bit from here then after US CPI news it continued the direction.

Lesson learnt: Don't fight the Strong ADX and A Defected Pattern should not be traded at the first place.

The positive side is if I closed all trade right now I am still in a small profit or losses. This is the power of Pattern and DIversification. Quite forgiving for mistakes and I also now treat my demo account even more careful than my real account now. I have a major perspective shift and mindset of what trading is. Sometimes demo account is more important than real account. It can act as a benchmark for my psychology condition. If I trade real and demo accounts at the same time, the difference between both account will tell if I am mentally prepared for trading.


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