Learn from mistakes

Mistakes are to be look at, learn and understand why it was made. We need to relook at our thinking processes, system that we use, emotions, environment on what cause such a decision making.

I am having the issue of "trying to spot a reversal" and went into shorting earlier then what the market signals gave. With this thought in mind and seeing the market went higher, I go into my usual routine of accumulating more short positions as the price went higher. However, as i was accumulating, my usable margins left with not much for price movements, causing my positions hit the margin calls. Today the price reversed and went downward, so cause if I say i predict the reversal is coming, "yes" i got it. But i got the timing all wrong.

My mistakes of doing averaging without much usable margin for movement has made my account size reduced by 50% in a few hours. My timing was also wrong.

Anyway, as to give everyone a quick updates on the EURUSD is that the market has closed below the netline but the price action on the next candle did not confirm it. As of now, the trend may be intact.

But you should take note a few things:-

1. RSI divergence is in place. However, the level we are right now is at 60. 60 is the key support level for a downtrend, not a uptrend. It could also implies that the market is doing an accumulation for more downward movements.

2. The bullish engulfing candle occurs after the red candle touches the netline. Which mean that the market doesn't want the price to fall yet. I refer the market as Fed, Banks, Institutional and other Big players. It could also be that they are accumulating short positions before giving an unexpected downward spike.

3. Position accumulating by big players can be around 1.40 to 1.42. This is just my guess.

See my screenshot attached.