Shardy's Day Trading Journey - Day 16

 

Today was a good day of trading and I was able to avoid any mental lapses. Overall was up on the day but not quite like yesterday. I want to talk again about Bolinger Bands and show you a good example of how they may not work in your favor.

If you notice the first blue circle(point 1) was my initial entry point for a short trade. It was at the top of the current Bolinger Band (BB) and did actually pullback down a little bit. I was still showing that a sell was still valid and decided to stay in the trade and actually shorted again at point 2.

After point two again price dipped down but not as far as I thought it would go. Price was continuing to form new highs so I started to manage my trade with my stop loss. I typically will start with a 2 point stop loss. I moved my stop the high of each previous bar eventually getting stopped out at point 3. Of course you can that the next bar price drops straight down.

Another indicator I want to show was the formation of a dogi. The dogi is formed at point 4. Dogi's are only as strong as their last bar. The last bar was a nice big green one indicating that after the dogi price will possible go down, which it did. 

DISCLOSURE: Information on IntelliTraders should not be seen as a recommendation to trade binary options or forex. IntelliTraders is not licensed nor authorized to provide advice on investing and related matters. Information on the website is not, nor should it be seen as investment advice. Clients without sufficient knowledge should seek individual advice from an authorized source. Binary options and forex trading entails significant risks and there is a chance that clients lose all of their invested money. Past performance is not a guarantee of future returns.

This website is independent of binary brokers featured on it. Before trading with any of the brokers, clients should make sure they understand the risks and check if the broker is licensed and regulated. We recommend choosing a regulated broker. In accordance with FTC guidelines, IntelliTraders has financial relationships with some of the products and services mention on this website, and IntelliTraders may be compensated if consumers choose to click these links in our content and ultimately sign up for them.

IntelliTraders does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in trading binary options are high and may not be suitable for all investors. The IntelliTraders Network is educational material and not trading advice. Trade at your own risk.

© 2024 IntelliTraders, inc. All rights reserved. Privacy Policy Terms & Conditions