Live trade explained

Here is the live trade I took on my real account on Friday.  I use NT7 for my analysis and take trades on my PFG Best account.  PFG Best provides the live data feed onto NT7.

The indicators I use are:

On 6 Renko chart - 34 HMA; 60 EMA; Volume patterns Indicator (VPI)
On 3 and 15 min charts - 34 HMA, Volume Patterns Indicator, Better Volume (BV).

Nb, I must thank Big Mike from BMT for creating a great resource as without it, I would not have these great indicators.  Also Fat Tails for bringing volume to life with his version of the Better Volume indicator.  Cunparis for creating his version of the Volume Pattern Indicator.  And also Barry Taylor from E-mini Watch.com for being the inspiration behind these indicators. 

To Sam Seiden, the main instructor at the 'Online Trading Academy' - OTA - XLT programme, for teaching me how to identify supply and demand on a chart.

But most of all a big thank you to Tom Williams (and a lesser extent to Gavin Holmes) for teaching me how to trade using volume (volume spread analysis - VSA).

I have posted three charts to show what I look for in a change of trend (COT) trade.  The 3 minute and 15 minute charts alerted me to the possibility of the trend reverting back into an up move.  I also saw an area of basing on the 6 range Renko chart, and if price was going to go up, I needed to see a good break out of this area.  I also drew a box around a 15 minute churn bar and also needed a good break above it for confirmation.

I then look to enter on the Renko chart after a reverse bar.  I like to enter on the low volume bars (yellow bars created by the VPI) as these are a sign of momentum.  However, I entered too early, I really need to have more patience and wait for the shakeout to occur. I have noticed, these shakeouts usually look like an 'M' when going long (or 'W' when going short).

You will see on the Renko chart an extremely good 2 bar LV reversal which is the best signal for me.  However, as I was in the trade too early, and had become emotional, I ignored the signal, even though I saw it developing.

So by entering too early, I missed out on taking a good chunk of a 150 ticks move.

So what did I learn from this trade?

1 - Have more patience and wait for the shakeout, and a successful test.
2 - Pay attention to what the chart is telling me and not exit when a good signal is seen.
3 - Try not to get too emotional in a trade and take my losses like a seasoned trader.

I find my chart reading skill is improving week on week and using volume, especially climactic volume, I am better able to see a directional change.  However, I need to practice patience and wait for the shakeout before entering.  And be comfortable of missing a trade if it moves too quickly.  I believe it is the fear of missing out which is currently leading to my premature entries.  Fear of losing is also keeping me in a losing trade too long with the added problem of doubling down.