Chasing an entry - Closed

 Great example of setup this morning. As you can see in the charts, the daily and hourly are below the cloud, but the 10M has rotated up above the cloud.




As it went up on the hourly, it came in contact with the underside of the hourly cloud (that acted as resistance) and turned down.

Perfect setup, if I had only caught it in time or waited for the 8-tick. The perfect entry would have been to put a sell stop at the edge of the cloud (hourly) and get stopped in short. Ah, why ask for perfection?

Woke up this morning to see that price had touched the hourly cloud and reversed. Of course, it happened while I was sleeping, so I missed it. I saw where price was and chased an 8-tick reversal all the way past the Standard line on the 10M chart. I gave up and decided on a 4-tick reversal. Happy as long as my stop stayed above HOD. Big green candle got me in, and then next candle was large green as well. 8-tick would have worked. Hindsight is 20/20, but happy with trade. Let’s see where it goes.

@0816hrs, Short 1 x ZN @ 110’255. Stop 110’305 (10 ticks). Stop currently 4R but will revisit as the day progresses. This will most likely be a day trade (unless bottom drops out of the market), so 3R may be more likely.

As well, looked at ORB trade for today, but the range of ZB was only 5 ticks. So, this gives R/R of 1/1. Not good enough, so passed.

==================================

Well, that didn't take long. 


Prices continued higher and hit my stop. At 0841hrs, BOT 1 x ZN at 110'305. Loss of 1R.

Am I happy with the trade, yes. Followed my rules and waited for an entry. Hindsight says that I should have waited for an 8-tick, but you never know what will happen. Faced with the same setup, I would take the trade again. But get stopped in or wait for 8 ticks.

Now I will wait 2 minutes, swear a little, re-compose myself, look to see what has changed on the charts and see if it is worth entering. But in all honesty, this loss didn't really hurt, because I had a plan and followed it. 

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Just an update. I have thought about my last trade and just before 0900hrs see this:


I have daily below, hourly in the cloud, and 10M above. All three in different phases, so don't trade until at least two of them are going the same direction.



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