Finally off the mark with a winning Aussie trade. My only trade for the week.
AU M5 QM gave permission to look for long entries into the H1 deep crab of 1.0180.
M5 bullish bat was identified at 1.0190, and UK data kindly drove price down to the level half an hour after FTSE open (ideal for entry). Panicked slightly on entry, scaling in at 1.0203 and 1.0196 (green arrows on below chart).
Profit was taken on 1/3 of the postion at 0.382CD of H1 crab (+50 pips), with the balance closed for +115 pips at 1.0318, just ahead of the bearish gartley 1.0330 identified on the previous post.
My mentor says there is generally a bit of friction even with the good trades and this was no exception, twice pulling back from +90 pips to zero, before finally hitting my limit.
I had reservations about the trade due to the short timeframe of the QM and the fact that is was counter trend, but in hindsight I could not expect more than an M5 QM given that the crab was only H1. I also felt a lot of the week's early longs had been washed out with the break below the range. ATR was extended, time of day was good, daily and monthly 3SMA had been breached, so I pulled the trigger.
Risk/reward was approximately 1:1. Risked 25bps to make 27.5 (stop approx 80 pips through entry - under H1 crab next XA fib).
