Daily Activity 9/23

This week I've been continuing the focus on building my trading toolbox. After a few days of watching my moving average cross idea it became apparent that I need a way to discern between valid breaks and small retracements. Remembering something that Mack from Blue Point's trading room had said about using two sets of bolinger bands I decided to add that to my charts and see what transpired. Over the past three days I've attempted to trade the AUDUSD using two sets of bolinger bands and 2 moving averages. The bolinger bands are set at 2 and .8 standard deviations respectively, and the moving averages are the 50 and 200 period. I watch the 10 minute and 1 hour charts and look at both for entries and exits. So far I've had mixed results but not due to a poor trading strategy, but rather because I find myself going against the strategy too often. Today for example after being away from the markets for almost 3 hours I took a short trade after only looking at the charts for a few minutes. My entry was based on the price being at the top band on the 10 minute and having moved sideways for the past 2-3 bars could be rolling over. However, I completely missed that the 200ma had just been broken and i was shorting into it. I got stopped out quite quickly. This is the type of mistake that is keeping me from being more profitable. The day did turn out to be profitable because I shorted the AUDUSD after the big pop from the Federal Reserve announcement at 2:15pm. I exited the trade at the lowest bolinger band on the 1 hour chart, which turned out to be just a pause as the pair continued down quite a bit further. 56 pips is not bad at all and there is no reason to be greedy and try to get top or bottom tick. The man who introduced me to the markets 7 years ago used to say "Pigs get fat, hogs get slaughtered".