5% Risk
Reasons for entry:
- SELL limit because of the downtrend, higher confidence because trading in trend direction is more desirable.
- Using a combination of support lines, fibo lines AND the number of pips difference in the last swing low to swing high (about 88 pips) I made a calculated guess at the resistance level
- Price looked like it was hitting support and bouncing up a little, with this in mind I figured a sell limit ahead of time near a possible resistance might be a viable entry point
Reasons to not enter:
- RSI is still showing divergence (higher lows despite price making lower lows), taking this to account the TP is simply the low of the previous day and does not exceed it thereby appearing to play it safe while still in a downtrend
Overall sentiment
Overall since its a downtrend it made sense to stick to doing sell orders. The downtrend looks like its slowing down but this isn’t enough to have confident buy orders. I feel that at the very least some sort of double bottom to the downtrend will form which will reap profits even if the trend is slowing down
Confidence level at start of trade: 8
Confidence level during trade: 8.5
**POST TRADE COMPLETION**
Result: Take profit hit
What went right?
- Trading with the trend
- Waited it out, patience is key, the trade took almost 2 trading days but because of the weekend had been active for a few days
- Very accurate entry point, the combo of resistance lines, fibo lines and comparing pip difference of the last swing high to low gave a very nice and low risk entry point
- Wider SL and TP point as a result of the above point
What could have been improved?
- Got a little impatient and lowered the TP slightly because it had almost hit it before but was retracting, lowered only by about 2 pips though, however I could have been even more patient
