The best looking chart is not always the most profitable

A slow market this morning. Little news until this afternoon. But a trade is a trade, and the best looking chart is not always the most profitable.

We got suitable signals from both GBP/USD (top chart) and GBP/JPY (bottom chart) at about 09:45. GBP/JPY some five minutes earlier. Although the price action favoured GBP/USD, Japan showed its colours earlier.

A trade is a trade, so we entered short GBP/JPY (the lower chart). The price action that looks the best does not always provide the speediest or best result.

We asked ourselves (1) what is the dominant price direction and are we following it, (2) is the market trending or ranging, and finally (3) is there price action that may interrupt our desired track to target?

Our answer to each was acceptable, our only concern with GBP/JPY was the significant number of 14,800 that we had to traverse on route to our goal of 30 pips.

On the other hand, if we had chosen GBP/USD its magnetic number of 13,200 slightly above possible entry, would have been an issue also.

A better plan would have been to take profit at the 14,800 price range and reassessed a reentry. But in hindsight is always easier.

We ejected the trade for a few pips profit and went back to waiting patiently.

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