Outlook on Daily – Price bounced off a weekly resistance and the upper line of the upward channel
Reference on 4H with upward trend line broken, support turning into resistance and formation of downward trend line. Price currently pulling back after the break out, opportune time to go short.
Entry on 1H Zoom it in and corrective trend line has formed with a small triangle rejecting the support turned resistance level. Stop entry to trade the break of the corrective wave.
Automated stop loss first keyed in above the latest established swing high with the StoR area expected to be the next. Once trade is triggered and corrective wave broken, shift stop loss to above the swing high with a little bit of buffer. Trail the stops accordingly.
08/03/2017 @ 1545 – Entry triggered.
0.5% capital risked for potentially 2.4R.
Entry: 0.717 | Stop loss: 0.724 | Target Profit: 0.7
Psychology and emotions – Set-up fitted into strategy. This time waited for confirmation with a stop order. Took a smaller risk, instead of 1%, even though I felt this was quite a high probability trade.
Stop loss shifted to break even (at 0.716 for a 10 point gain)
13/03/17 – TS shifted to 0.715 (for a 20 point gain)
Trailing stop triggered. Almost hit take profit. Shall consider this a practically breakeven trade. A good one as it was an opportunity against the longer term (daily) trend.
Note that price can still see lower lows. However, latest swing low was on a former resistance zone. Break even must be the worse case scenario. Followed the rules. Good trade.