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Yesterday’s objective was frustrated by the fact that EUR/USD ranged throughout the NY/LDN crossover (the time I traded). As such I tried and failed to scalp reversals in the market. Frustrating day but some lessons learnt:

 

Made five trades. three losers, one winner and one break even:

Trade 1(13:33): Based on Price and CCI divergence(Circled on chart). Taken too early, -2.65. Exposes one of the weaknesses of these trades, the divergence suggests price is likely to reverse, but when exactly will it happen? Also concerned about the size of this loss compared to the size of the winners I have had from these trades.

Trade 2(13:42): Same reasoning as above, taken slightly later as price keep increasing. +1.3.

Trade 3(13:55): It suddenly occurs to me that the news release at 13:30 has pushed price close to the 13174 level that constituted the daily high( can be seen at 10:10). This fact and receding CCI made me believe a short entry here would be profitable. SL at 13177(just above the daily high). TP at 13136(just above the nearest minor demand area. Open at 13168, giving a R/R ratio of 3.6. Perhaps my TP was adventurous in a ranging market but high R/R should be attained where possible no? Who knows…Price did indeed fall, enough for me to move my stop to break even, but rallied before my PT and stopped me out at BE. Still have no idea of the merits of moving the stop loss to BE over letting the trade ride.

 

Trade 4 and 5(15:05 and 15:45): Basically the same trade taken twice here. One in each direction, both with the same problem. Expecting a reversal soon and thus jumping in too early as I was desperate no to miss the reversal I was so sure would happen. Poor entry prices taken on both. The 5th and final trade should have been a slam dunk. Looking right on the chart from the upward pointing arrow, you will be able to see the white line that starts at roughly 11:30 and ends at 13:10. This line is the most recent minor demand level that I marked on the chart. This should have been an OBVIOUS entry point for a reversal, especially accompanied by an oversold CCI reading. Also note my entry price( the second white line above the upward pointing arrow) which was 7 pips above the marked demand area. A clean 30 pip uptrend occurred just after price touched this level.  Think I let greed overpower any rational analysis of the situation at this particular instance in time. Very disappointing.

 

I think I at least feel better prepared if tomorrow’s market ranges: Look for reversals that coincide with demand/supply areas marked on your chart. Do not arbitrarily enter positions because you "know" a reversal is about to take place. 

If the market trends my previous objectives will be my aim for the day. GLGL.