My trading on Friday was highlighted by failed long trades on AUD/USD. I know of a few trader buddies who took the short side for their own reasons and I couldn’t be happier for them. Well done guys! So I’ve looked back to see if I made some kind of stupid trading mistake or was I blinded by my own bias or did I play by my rules.
The hourly chart below shows the most recent behaviour of AUD/USD. And up until Friday it provided some great trading signals. It provide those same signals on Friday too but the trades failed. I believe I did the right thing in buying the rising MA support and then the horizontal support, both with accompanying indicator signals. It just so happened that Friday was the day the pattern broke, which we all know that sooner or later trends and patterns will fail.
So in hindsight I traded correctly according to my own system/plan. It was a trend following plan as opposed to the parallel lines I often use when trading S&R style. Losing trades are a part of any plan, accept them when they happen. Walk away when they upset you, but accept them nonetheless.