Subject:    QL FV50 @ 117'22.25

 

Start:    Thu 14/05/2009 2:00 PM

End:    Thu 14/05/2009 2:30 PM

 

Recurrence:    (none)

 

Categories:    Loss

 

Entry

Long: 117'22.25    Stop:117'20.75    Ch: 24.2-20.2    W: 4.0    R/R: 1.0:1.33

 

250 tick Screen One

Recorded after finishing trade, hence view differ from the time at entry. Macd-h is bullish with higher high along with price. Impulse is confusing with Red bar in between. At the right edge Impulse is Blue, permitting long trades. The point of most importance here is the Force Index having bearish divergence on higher high & has given a new low at the right edge.

 

50 Tick screen 2

Macd-h has given a deep valley in comparison to the price low. There is a very strong bearish divergence on macd-h. Macd lines are having strong bearishness. Impulse is Blue at the right edge. We traded this position solely on screen one price and macd-h direction. R/R is 1.0:1.33

 

Sentiment was positive at the time of trade. When we found the mistake after closing the trade, we realize that this chart does not have any valid signal to trade. Both charts are giving different messages.

 

Immediate moves: Trade did not move even a tick in favor of the position & instead took the opposite direction.

 

Exit trade.

Within three bars from entry, trade got stopped out. Lost 1.50 points in this trade giving a 'D' grade.

 

Lesson: We have learnt a great lesson from this trade. Any signal to be traded needs confirmation from all indicators from both screens. Only then we can be out of emotions. Doing these type of trades regularly will hurt our confidence level.

We have learnt a good lesson and pledge not to repeat the same mistakes.