Shardy's Day Trading Journey - Day 16

Today was a good day of trading and I was able to avoid any mental lapses. Overall was up on the day but not quite like yesterday. I want to talk again about Bolinger Bands and show you a good example of how they may not work in your favor.

If you notice the first blue circle(point 1) was my initial entry point for a short trade. It was at the top of the current Bolinger Band (BB) and did actually pullback down a little bit. I was still showing that a sell was still valid and decided to stay in the trade and actually shorted again at point 2.

After point two again price dipped down but not as far as I thought it would go. Price was continuing to form new highs so I started to manage my trade with my stop loss. I typically will start with a 2 point stop loss. I moved my stop the high of each previous bar eventually getting stopped out at point 3. Of course you can that the next bar price drops straight down.

Another indicator I want to show was the formation of a dogi. The dogi is formed at point 4. Dogi's are only as strong as their last bar. The last bar was a nice big green one indicating that after the dogi price will possible go down, which it did.