Interpreting the market.

Today I missed a perfect set-up on USDJPY pair: The picture explains the entry.

My mistakes:

1. I looked at the price and "saw" a head and shoulders pattern there. First of all, reverse H&S occurs at the bottom of the downtrend. The swing from previous down couldn't be considered as a downtrend.

2. I need to trade what I see not what I expect to see. Because I saw a H&S I wasn't able to notice the set-up to the opposite side of what I was expecting.

Conclusion:

Allways analize market to both sides! Do NOT trade expectations. Trade what you see not what you feel. Learn to see what price action is doing.