Day 12. +6.9 Crush Groovin.

Great success today. First, best winning day so far. Second, I got in on the trends a bit earlier than I have in the past, while still sticking to my rules. Third, I practiced letting my trade stay in a bit longer. I didn't do too much longer, hah, but in the process I got a couple extra pips. More pips, more fun! Fourth, I finished my session earlier than usual. And lastly, I was able to pretty accurately predict where the trend would change.

Predicting a trend reversal is not something I was I interested in doing before. The only reason I decided to try was because, as I wrote yesterday, I noticed that most of my trades and pending trades were entered right before a trend change happened. I wondered if the price action and signals I use to enter my trade are actually strong indicators that a reversal is about to happen. The more I thought about it the more it made it sense so I decided to test myself. I went over to Forexbirds blog, since we both use 3 range charts, and opened 20 of his charts in separate tabs. I held a paper over the chart only revealing the first bar and slowly moved the paper over to reveal the next bar. I continued to do this until I got to a point where, based on price action I would normally put in a trade. I said to myself, "Ok, right here is where I would put a trade and this is why. Because of x and x I think a reversal in trend will happen around here at xxx." Then I took the paper away to reveal the rest of the chart. Out of the 20 charts I tried this on I was correct 17 times. I was really surprised at this and excited as well. Felt like I was really getting a feel for price action.

Testing myself on static charts is one thing, but doing it in real-time is another. So I had to test myself while trading live. Which I did today. To mark where I think the trend is about to reverse I put in a pending limit in the opposite direction then immediately canceled it. That way a marker will be left on the chart. I did this twice today. The first was around 5:22. Price reversed there. Second time was around 5:46. Price reversed there as well. Then ranged and completely changed direction. I actually did it for a third time around 6:19 but I didn't mark it. My attention was elsewhere and I glanced at the chart right then and thought, "Oh, right here. I bet price is about to reverse." Then bam bam boogie, it did. If you compare those two marker limits to my previous charts you'll see that that is where I would normally enter a trade. Which coincides with my assumption earlier. Funny stuff. Anyway, who knows, I may have a hard day tomorrow and think, "What the fuck, I don't know what I was talking about!" hahah. But for now, it's all good in the hood.