Two trades yesterday. The first was a pullback after the failure at 898. The exit was prior to the 882.25 target area. This has been an issue in the past few days.
I started scaling out of the short position after the the price started to consolidate and put in a couple small pump fakes around the 887.50 area. These were indeed objective reasons to exit from a myopic view. However, there was no corresponding level of support where the exits occurred.
Could the market have reversed there and stopped me out break even? Yes, that was a possibility but the consistency that I have achieved lately has been due to letting the market move to its natural areas.
This prevents me from getting caught up in the bar to bar action and tempo. I can read and interpret bar to bar patterns extremely well but have found no way to quantify which ones will work and which ones will not.
The second trade was simply buying support for a bounce. I was quick to scale out because the overall target below was 874. Obviously, in hindsight the initial short was the trade for the day.
This is another example of how the zones established in the morning almost always seem to prevail.
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