Dummy day trading #52 05-Feb-2007: NQ Long trade closed

Long position was established around 1041am (NY time), which was the first pull back of new uptrend cycle. This was the second time NQ trying to test last Friday's high. I was wrong . Stop loss was triggered with 1 R loss. Since the second attempt of previous high failed, NQ seems to be trapped in the trading range. I am out for the day, cough syrup causes some drowsiness now.

One trade closed with -1 R loss

[photopress:NQ200ticktradeclosed05Feb2007.jpg,full,alignleft]

Trade summary

Long above narrow range candle around 1041am , which was breaking out from a flag pattrn as well.
Stop loss set at recent swing low.
Stop loss was triggered with 1 R loss.

Comments

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Stevey2007-02-06 05:36:00 UTC

Hi Gav, I notice that you use flag pattern as part of your trading system. The flag patterns are only valid during a trending move and not when the market is in a range bound position. Hope this helps. Stevey

Stevey2007-02-06 05:36:21 UTC

Gav2007-02-06 05:51:00 UTC

Stevey, Thanks for your comment. Yup, you are right. Flag patterns are trend continuation patterns. My mistake was entering the trade when it was still within the trading range. I have noted this in my journal.

Gav2007-02-06 05:51:17 UTC

Review week ended 09-Feb-2007 : Staying Flat | TraderGav.com — Pingback2014-11-07 14:01:02 UTC

[…] were two trades, where I was too eager to establish position when NQ was still in trading range. I got […]

Dummy day trading #52 05-Feb-2007: NQ Long trade closed

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