I wasn’t expecting much today since it was a US bank holiday, but when I opened my charts, I noticed that the ATR was higher than usual, which indicated increased volume!

This is likely due to the huge fall in price, which took place on Friday afternoon and can be seen in Trade 11.

A great start to the week with a +24 tick profitable trade. Let’s review it.

Practice what you preach

Last week, towards the end of the week, I realised that I was overtrading. It was contributing to a much more stressful trading life than necessary. I decided to step back and let the price present itself to me.

In this setup, I’m glad I waited. My impatience had me scanning, thinking I was constantly missing out on good trades. But none of the trade opportunities I thought I saw gave me a sense of conviction. Therefore, I waited until I spotted this one…

Goes Against The Grain

When I was learning to trade, many sources said that breakouts fail 80% of the time. I’m sure they’re right because they’re the experts, but so far, I disagree.

For this trade, which I entered long, I saw that the price had broken out of a range. The price stalled, came back into the range, and I thought many sellers were waiting for the price to reach the bottom of the range again. But it wasn’t ready…

I entered a limit order, as the price was moving too quickly. I was pleased to be right and walked away with +24 ticks profit.

Below are two images of the trade, one marked with the orange trap box and the other showing an overview.

Current Trade Challenge Progress