Good morning Forex day traders, 8 am Monday 19th February 2018. USA holiday.
We missed the first trade of the day. From the close of the bear bar at bar 1, an unassuming engulfed bar, I went for my first pot of tea of the day. I missed the second bear bar, bar 2, which provided a probable entry short of eight pips.
Eight pips are our minimum entry in the GBP/USA currency market.
The short went 12 pips below our planned exit, down to Friday’s low and the significant number of 14000. That, of course, means 1.4 dollars to the pound.
Trades today will in all likelihood be light being a USA holiday. Expect a trading range day, but occasionally on such holidays, a trend can form.
Our missed entry looks good on paper, but in reality, I would not have made the short. The spread at the time was double, which is typical for a no-news Monday morning. As I don’t pay the entry spread, I always like to achieve a limit entry, the subsequent pullback at the close of bar 2, and at two pips spread, would not have worked.
We wait patiently for the next opportunity.