London Training Session GBP/USD Short April 17, 2014
The trade I took during the London Live Training Session last week Thursday was a great example of how we trade against the first push. Since the bias we start off with for the day has to be over ridden in some fashion I most often need to see things come together rather clear before I am willing to change my bias and trade against it. So lets put this together so everyone is clear.
In my commentary for the day I did say the only way that I would look for the short was if we got the move back below the previous days highs. At the time I was doing the commentary that was my thought process but when the London session started with no drop below I was rather intent and convinced of the long position for the move of the day. It had essentially started the second push and I was looking for them to finish it during the London session. As time went on and it couldn’t do and fake move down to test the daily level where I was looking to get long from. After over an hour into the London open they started to show their hand with the trapping patterns we look for along with a stop run to the Asian highs so I started to add up the probabilities. What sealed the deal for me was the low risk on the entry at the highs of the day. They still could have pushed it upward to finish the push so my plan if they did and showed conviction above the highs was to get out with a smaller hit as they test the breakout and look for manipulation for the entry long.
1) The Asian range was well over 40 pips due to the break out making its highs a more probable significant level. 2) We have a stop run with set of legs. 3) Rules fulfilled for the confirmation entry. 4) A low risk entry where my stop was 13 pips above the highs. Pullback for entry and I am in. It even hung out there for another 30 minutes eventually giving the less aggressive entry I normally look for at the top of the bodies of the legs which would have been the perfect entry with it never going against me. No worries, I admit I let aggressive Chad out of the box a little that day 🙂
I do go into more detail in the video so its well worth a view if you are a member and missed the session and this will be a good intro lesson for the nonmembers who are looking to see what we do in the live sessions before you sign up. Enjoy the video.
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