One of the major problems with forex trading, particularly if you trade the longer time frames like I do, is that it can be incredibly frustrating sitting around for hours on end waiting for the perfect set-up. You already have your tried and tested system in place, and you are just waiting for the right opportunity to come along. Sometimes you can watch the markets all day and get no set-ups at all, and worse still is when one of these high probability set-ups occurs overnight, so you have no way of trading it.
Another time that I get particularly annoyed, and I’m sure you will have experienced this yourself, is when it looks like you have found the perfect set-up (that does occur during the day), but for one reason or another you cannot get a good entry point. This frustration is only magnified when the forex pair continues to move in the direction you expected, and therefore would have been a profitable trade.
This is exactly what happened to me yesterday afternoon. There looked to be a perfect set-up on the 4 hour chart of the GBP/USD pair. The Supertrend indicator was green on the daily chart (indicating an upward trend) and all the indicators that I use were looking good for a long position on the 4 hour chart.
We had the EMAs crossing upwards (which was the main signal), but we also had strong divergence on both the MACD and Smoothed Repulse indicators. So everything was in place, as you can see below:
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Filed under: Forex Tips Tagged: | forex, Frustrations, Perfect, Set-Up, trading, Waiting
