This was a bad trade initiated on friday during the late US session, usually its not wise to trade at this time as the market is rather thin and prices could be pushed to just about anywhere.Well, this is just another cheap lesson learned from FX. I risked only 0.6% on this trade.So what made me took this trade in the 1st place ?
as you can see in the 1st chart the price is making a higher high. The price seems to have bounced off the round number support with the emerged of two bullish hammers. Just immediately after the hammer a bull candle appeared which initially hit the minor resistance of 1.2921 and the close above both of the hammers confirms a support and a valid bounce. So that was the signal to go long.
So what was overlooked ?
The bull candle which was the signal hit the minor resistance at 1.2921. which was not a very good sign. So an entry after the bullish candle was not as good as resistance is already too near. I was supposed to exit after a few failed attempt to push price higher but i did not so this was a mistake. In trading if you know that price is being rejected at the resistance after a few attempts, its therefore wise to exit the trade with as minimal losses as possible.
My stop was taken out eventually by the price spike (the 60 pips bar). So this is the reason why trading in US session on Friday is risky.
on average its -16 on this trade.
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