03 Nov 10 - Bullish Butterfly Pattern on USD/CAD - H1 Chart

The start of Nov would be considered a choppy week as the market awaits the Feds interest rate release and it was one factor which I overlooked and entered on this trade on this pair which led to its failure.


Then again, in trading, we are always looking to trade and with each mistake made, it is always a step moved forward to further sharpen our trading skills and in this case, I have learnt that I will have to stay away on the days before the interest rate release.


Now, details on the signals of this trade which prompted me to go long:

1. A support was seen on the D1 chart @ 1.01072.
2. A confluence of 3 harmonic ratios - 1.27 XA @ 1.01030, AB=CD @ 1.00885 and 2.24 BC @ 1.00968.

Trade Details

• Date: 03 Nov 10
• Time: GMT 17:00
• Entry Price: 1.01072
• S/L: 1.00500 (57.2 pips)
• T/P: 1.02330 (125.8 pips)

Trade Update

Both batches in this trade was taken at the S/L as a result of the interest rate release due to a high volatility despite having made some moves before the news release. Loss taken in this case was 57.2 pips

Reflection

It is important to look ahead despite a loss as losses in trading are sometimes inevitable but it is just that we have to manage them and keep them to a minimum.

In this case, it is considered an avoidable loss since I overlooked the news release on Forex Factory.

Ever since I started this blog to track my performance, I have made a commitment to be very frank with myself as an honest review of my trading will then allow me to correct my mistakes and flaws and thus from there improve my trading performance.

It has been a long journey when it comes to Forex trading for me and it was never a smooth ride initially until now which I have gotten some breakthrough. Then again, the road to success is always under construction.