Here's my obligatory June recap. Equity curve flat-lined as I really sized down. I'm going through this process of earning my size and that has been working out so far. I'm targeting these higher quality setups, cutting my losses early if the signals go against me, and planning my trades by scaling into positions as price action progresses.
Equity curve below:
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| June 2021 |
Man, the first half of the year has been a shitshow. The pain from the rapid equity drop is real, but it's still a learning experience. Might as well realize it sooner than later that I need to earn my size and only scale up when I really trust my setups.
Speaking of setups, there are a couple that I do want to go over. Just looking over the levels that I have plotted, there are a few pairs that I want to highlight.
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| CHFJPY 1-Hour |
This ties into the newer setup that I've been watching. The breakout continuation play typically works best when there is a structural reversal move. You're essentially catching the next pullback opportunity if you never get the first entry. Over on CHFJPY, I've had moderate success with this play. The breakout continuation led to an explosive move, which died off rather quickly.
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| EURJPY 1-Hour |
Another great breakout continuation play over on EURJPY. This was an explosive move that led to a gain of 78 pips.
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| GBPJPY 1-Hour |
There's a theme here. The Japanese yen weakened against all of these pairs. The fundamental drivers definitely could've been recognized with this breakout continuation setup.
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| USDCAD 1-Hour |
This is a different setup, which I call the "Parabolic Reversal." The reason why I call it that is because the circled area looks like a parabola. I don't know if there's a better term for this so I'm sticking to it. The idea here is that you want price to retest a high and see if it can break higher. When price fails to breach higher, that's a pretty good sign of exhaustion.
Now, it's very important to pick your moments. I find that watching this failure works best when there has already been an explosive move, or when price is generally over-extended. These are some new setups that I'll be watching in July. More posts to come if I do capture any opportunities that expose themselves in real time.
