...completely screw up an easy setup. Basically through micromanaging the position (a trait I can't seem to shake).
Two very simple things I could have done to prevent this; 1) Keep my stop where it was. 2) Enter on the trigger NOT within the chop. There were two triggers (down arrows on the 5-min chart which were also my entry and stop out points) where the fast line either turned negative or pulled back. The concept was very simple; range, break of range, retest, continue.
I must have entered short 5-times within that range in the early afternoon prior to it breaking out. Just taking small losses or scratches, but piling up the commissions. There was no need to be short when the fast line was green, or until price proved a breakout of the range. When it started going my way I bumped the stop down to breakeven+commissions and got stopped out. THEN when it reversed (3-cents beyond my s/o) it ends up doing what I was trading it for; and when it did I didn't want to get in after the long range bar b/c I "didn't want to chase" (notice how much of an adverse move followed that triggered entry wide range bar (7-cents).
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.