Trade Review: EUR/CAD Double Top

I may have taken a hit on this EUR/CAD short setup but I’m walking away with some lessons learned. If you’re wondering what I’m talking about, make sure you read my initial trade idea first.

I thought I spotted a legit double top pattern on the pair’s 4-hour forex time frame so I hopped in a short position when that neckline broke. Price clawed its way back up, giving me a bit of a scare, but I held on and the selloff eventually resumed.

At that time, Canada was about to print its latest jobs numbers so I decided to close at market then just re-enter if the actual figures come in stronger than expected. At the same time, I also trailed my stop down to my original entry at 1.4550.

EUR/CAD 4-hour Forex Chart

EUR/CAD 4-hour Forex Chart

Price popped up higher once more, hitting my adjusted stop loss in the process. Since I gave up some pips between my decision to close early then re-enter, I wound up with a loss on this trade even if my position was stopped at my initial entry.

In retrospect, I probably shouldn’t have re-entered the trade at all even though the Canadian jobs figures beat expectations. Either that or I should’ve put in a much smaller position so as to not erase my previous wins and even end up with a 0.04% dent on my account. Talk about risk management gone wrong!

Another way I could’ve handled this was to be more aware of that descending channel that was just forming. That way, I probably would’ve kept my stop wide or re-entered right at the channel resistance for a better R:R. Oh so many lessons with 20/20 hindsight! Speaking of lessons, do share your thoughts on my Q2 2016 performance review as well.

Got any ideas you’d like to share with me for this week?

Cheers,

Happy time

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  • forzion

    If you look at the chart carefully you would probably see that the range of support and second top in the double top was around 240 pips and you reentered the trade when the price was 200 pips down the broken support so you reentered close to profit target area of some specific setup. Maybe you should not reopen the trade.

    • Yep, good points! Seems like I reentered right at the bottom of the channel that was forming.