1. Invalid signal since RSI was still above 50.0.
2. Invalid signal again since RSI was already above 50.0 before the crossover.
3. Invalid signal since RSI did not cross the 50.0 level.
4. Invalid signal since RSI was above 50.0 before the crossover.
5. Sold at 1.2588. Closed due to new crossover at 1.2606. -28 pips.
6. Long at 1.2606. Closed due new crossover at 1.2583. -23 pips.
7. Short at 1.2583. Closed when 200-pip PT was hit at 1.2382. +200 pips.
As you can see, the first four trades turned out to be invalid. While there were crossovers, the RSI did not cooperate. Whenever the EMAs made a bullish crossover, the RSI was already above 50.0 prior the crossover candle. Whenever the EMAs made a bearish crossover, the RSI didn’t go below 50.0
I also bagged a few pips from my GBP/USD trade idea. Last week, I setup a straddle play on the pair with the BOE interest rate decision as the catalyst. Well, the pair already moved lower ahead of the event so I decided to pull the trigger when it made a new low at 1.5570.
Price moved in my favor as the BOE announced more quantitative easing but it didn’t quite reach my profit target at 1.5470. GBP/USD just consolidated ahead of the NFP report so I just decided to take profit at 1.5525.
I can’t say that I’m truly happy about my 45-pip win (+0.44%) though. I wasn’t sure how to handle the NFP report and closed my trade with a return-on-risk ratio of less than 1:1. Drats! Looking back, it would’ve been a better idea to have kept my trade open and moved my stop to breakeven.
But rest assured, the lesson is learned! I’ll keep my emotions in check the next time I trade and manage my positions better.
How did you do last week?