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 seems 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 involves the¬†awareness of ‘gap bars’ and only to take trades in the direction that correlates with these gaps).

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

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