First, lets review how I was trading in the last month or so. I would have woke up and checked out a 15 minute chart and saw this. The blue lines are higher time frame support and resistance lines, or where price has had significant reactions in the past. I would have seen that price traded up to resistance and then traded down.
This looks similar to the London open sell template (copyright to Michael Huddleston).
The gray box in the chart above represents London open. My thought would have been to wait for a retrace during New York and try to get in to the move of the day.
This trade would have worked fine in a trending market and when the direction of the day is in line with the higher time frame trend. Since we are bullish right now and this is a sell I looked at it differently when I got up. Also, even though it fits the template I did not ignore the fact that it was trading in to resistance (even though it had not reached ADR for the day).
Here is how I saw it.
Price moves against the higher time frame direction hit resistance and comes down and hits support at the 5580 level. Price jumps up around 30 pips and then retraces in to an OTE. I actually went long at 5595. However, after sitting through the mud all through the New York open I closed at break even. This is fine as I was only thinking about demo trading this week anyway to make sure I was in sync with the market.
More importantly my analysis was right. The high of the day so far is 5654. I had planned on taking 1/3 off at 5530 and letting the rest run as a position trade. Possibly the 1.600 figure.
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