X
As shown above, the weekly timeframe Stochastic RSI of X is flattening out. Additionally, for the following reasons I decided to exit my active short trade because they confirm that my entry was wrong:
- the price action has closed above the Kiljun and a key support level on the daily timeframe.
- the Stochastic RSI on the daily timeframe is steadily making its way up to the overbought position.
- the Kumo Cloud on the daily and 4 hour timeframe has moved sideways as oppose to up or down. This reveals that, currently, there is no strong trend. Instead, the price action is ranging, which is never good for my style of trading.
- there is a thick Kumo Cloud underneath the price action on the 4 hour timeframe, suggesting that probabilities now favours the price moving upwards.
Learning Point
I am getting better and better, psychologically, at experiencing small trading losses. This is because I was able to close this position immediately without any sense of attachment. That said, I still had the feeling within myself that I don’t want to sustain any trading losses. It is clear, therefore, that I still have a lot of psychological work to do.
Next Actions
- Continue to monitor the price action of X everyday in order to keep up with your learning process.
- Update the new trading spreadsheet with the latest X small trading loss as soon as possible to continue the re-conditioning of your mind.
