Not recognising the bull trend took my edge

I was wary of trading last week – and with the unpredictable effect the US election could have on the market. The trades I did take were disappointing.

Looking now, at the end of the week, at the rise in the sterling/dollar price it looks like a great opportunity. It always does.

However, at the time, the market provided signals that supported a reversal (that is for me to short) only for the market to turn and climb rapidly. Recognition of the bull trend is an area that I can improve. (Not to get too technical, but this is done by being aware of ‘gap bars’ and only to take trades in the direction that correlates with these gaps).

Moreover, I decided to not trade Tuesday and Wednesday as I considered a sharp, unreadable, Brexit type move was possible. Again, I was wrong. On back test the market on these days provided good signals.

It was the Thursday bull that caught me out, Friday too to a certain degree.

But I’m open to learning from this week. Positives are already in place.