We talk about wash n rinse all the time on the higher time frame but today I want to share with you what it looks like on 5 minute chart. The principles are the same – look for a false breakout price action at resistance that is meant to eliminate stops. At this moment however, the wash n rinse as a short trigger can only be confirmed by movement of price below the yellow zone or breaking the lower trend line of the rising wedge.
If you are not acquainted by now, this is how financial markets rip accounts of new traders apart.
Have a good night sleep. Don’t open new positions since FOMC meeting results will be released tonight (3.00am). Like soccer, the ball is round. Market can equally go up or down. If you like games of risk, go to a Singapore pools outlet. (Forex is risky but it is intellectual – not betting.) At least that loss is fixed but you might just win something more attractive.
Do a review of the market tomorrow after dust has settled then decide whether you still want to be trading over Xmas. For those with existing positions, consider taking some or all profit. If you insist to stay, be mindful that slippages can happen. Here is an article reminding you what slippage is. If you get slipped tonight, consider that this is ultra high impact news and probably not your broker’s fault.
PS. This is what SiMSCI looks like just before I click publish.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.