This was a beautiful trade. One iof my cureent goals is to stop taking reactive entries and wait for retests, precise levels etc., as I have seen how much safer this way of trading is.
Today, I saw the compression satrting to form at R2. I was short so I had some feelings about where I wanted the market to go, but I also wanted to take a compression and get long as yesterday and ON were so strong.
At 10:11 there was a big green bar out of the TL and I didn’t take it – because that would have been an impulsive entry. At 10:14, it dipped down to the TL (see H1 chart below) and immediately reversed which got my short to its +20 target. This meant that it was, in fact, a broken triangle reversal – one of my favourite trades. at 10:17 there was another big green bar which reversed immediately; if I had jumped into this trade with a 10pt SL, I would have been stopped. I was so pleased with myself to
My brain was getting so much out of not trading that when real trade entry appeared at 10:18 and 10:19 I didn’t take it … with 7 minutes to think about it, I had come up with all kinds of reasons why it was a terrible trade … even though it was one of my best setups.
THOUGHT PROCESS: the most likely issue here is that System 2 thinking is required if I have to wait for the setup and it works differently, allowing me to talk myself out of the trade. It seems I rely on System 1 to jump into trades without worrying, but I need to use System 2 for consistent success and it can be trained. See Learning to use slow-thinking