Below is the list of all the signals the system generated:
1. Invalid signal because RSI was already below 50.0 the candle prior the crossover.
2. Long at 1.2983. Stopped out by the 50-pip trail at 1.2942. -41 pips.
3. Invalid signal since RSI was already below 50.0 the candle prior the crossover.
4. Long at 1.2886. Stopped out by the 50-pip trail at 1.2963. -23 pips.
5. Another invalid signal since RSI was below 50.0 the candle prior the crossover.
6. Invalid signal since RSI was already above 50.0 the candle prior the upward crossover.
7. Same story. Invalid signal since RSI was below 50.0 the candle prior the crossover.
Last week was truly a tough for trend traders as price action was very choppy and slow-moving. Hopefully, the upcoming week will be a different one!
On the other hand, my GBP/USD trade idea was invalidated.
After the strong sell-off at the start of the week, I braced myself for a pullback. However, risk aversion continued to linger on concerns about a potentially weak earnings season and the rise in Spanish bond yields that GBP/USD made a new weekly low without any retracement.
I guess I should’ve just pulled the trigger immediately after reversal candles materialized and Stochastic hit overbought. But then again, I also consider it a blessing in disguise that my sell order didn’t trigger.
As you can see, the pair bounced off support at 1.6000 and has since continued to trade higher. If I shorted at 1.6075, I would probably be more worried about my trade now than what I should wear for my date tomorrow night!