Forex trading and USA holiday

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┬ánumber 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.

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