Trade 14 – USD/CHF

Entry

referencechfReference on Daily Previous resisting trend line has turned support after a break out and pullback

entrychfEntry on 4H with clear downward trend line (pullback) broken. A new upward channel has been formed with confirmation by the 2575 SMA and the TAZ providing an area of value.

Downtrend broken ››› Crossover ››› Breakout ADX>25 ››› 2nd Pullback ›››  Entry

Not the textbook set-up. But what I have realised recently is that the objective strategy is just merely a good trigger to enter. Analysis must be done prior to fitting in the TAZ into the set-up. You can’t just throw the two SMAs into all swing highs/lows.

Therefore, analysis done first. Then, objective strategy to confirm and TAZ to give area of value.

0.75% capital risked for potentially 3.1R.

Entry: 1.008 | Stop loss: 1.001 | Target Profit: 1.030

Psychology and emotions – At this point, on record, out of 11 trades closed, lost 10 and breakeven 1. 0 winners. Good risk management and small amounts risked is still keeping me sane. Will need to review all the trades and see if stop loss is too near and others. At least with a trade journal I can see what nonsense I did wrong.

Trade Management

Exit

14rudechfWow that was absolutely rude. Stopped out only for the market to move in favoured direction. Perhaps should’ve placed stop loss below 1.

Update

updusdchfLesson Due to the possibility of the trend line shifting, as a rule, set stop loss under the previous established swing low. Otherwise it would end up like this whereby the trend is still fully intact and idea still not validated but market prematurely took out the position and missing out on the favoured move.

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