Wed May 28th - Pitiful Trends

AUDUSD collapsed an hour before LDN Open (no report release). 30m shows a large red bar. The past 3 days looks in a range, but if this was a decent effort to breakout of the box I wanted to give it a shot.

5m shows from LDN Open it retraced to test previous support. The move up formed in 2 legs and the 3rd leg up conveniently failed at downward MAs triggering my short. Entry @ 43 with a P1 tgt of 4 pips taken at the 2:50pm low. Miniscule for a trend trade, but that is what the mkt showed (it seems unbelievable that there were environments where I would enter and the nearest tgt was 20-30 pips away). 1m shows it went in favor but took 30 minutes to reach a 4 pips tgt!!!! It didn't break the 2:50pm low consolidating there for another 30 minutes and then stopped out P2 for +4. My initial stop was 8 pips so I ended up taking a profit half of my risk, but there was no way to earn a 1:1 payout with such terrible momentum - and this was a trend trade!!!

I quit after that because I only consider re-entries if the movement is healthy - that trade felt agonizing.

The next chart shows how the re-entry fared (without me).

It could've paid about the same amount, but it isn't worth the effort trading ranges that can't pay a minimum of 10 pips. The setup was slightly different and confirmed it was a 1-push trend that died into a range.

AUDCAD showed similar setups confirming correlation, but even worse ability to move. From LDN Open it took 3 hours to move from 45 to 25. 5m shows the constant back n forth making it impossible to capture a good share of that range, any of the deep pullbacks would stop you out before grinding downwards.

It is disheartening that trend setups are performing so poorly. That tells me there is no point trading in a range. Perhaps the reports are the only source of momentum?

Result: 1W for +4.