Tuesday 3rd February - Failed Trade

Well, The GBPCHF Head and Shoulders didn't trigger today but based on my strategy for the week, I did take a Short entry on USDCHF, based on a solid break of rising support and a 1H close below the 1H 200 sma... signalling the potential for a return to the 1H 800 sma many pips below.

As you can see from the Chart above this was a good entry with much confirmatory evidence supporting my decision, including clear MACD divergence.

...But my trade management was poor. As it raced South I moved my stop loss to break even and was subsequently taken out during the reactory rally - below the Support line (...!).

You can also see that the pair has since reversed back to the downside, leaving me chasing the trade with a far less favourable risk / reward ratio.

Whilst I didn't lose any money, the seeds of this poor result can be found in my post of last night.

LESSON: Unless I am prepared to commit to a trade, my stategy won't deliver !