Quote:
Originally Posted by pipvader
I took this trade because it failed to close beyond the 1.4806 level i had marked.
i entered below the rejection candle on the 1hr chart.
Since im new to this type of trading i was wondering whether my analysis was correct.
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You correctly identified an area of obvious near-term support & resistance & marked it up for reference.
Judging by the fact you executed a "short" trade, I guess you already established that the bigger picture was biased to the bearish on this pair.
Then you waited until price began showing signs of weakness before stepping in & executing your trade. You got a signal to go, according to your set-up/triggers....& you've got a clear area above the zone to hide your emergency stop in case it fails to go your way.
In my book, that's a pretty cool gig!!
Well done!
I've added a 4 hour chart just to amplify your reasoning & to show the clear s&r flip zone which you accurately identified. The 15min reference over the past few days again very clearly highlights the lower risk/higher reward option which you nailed.
Keep thinking & planning along those lines & you'll begin to weight the odds firmly in your favor over the long haul
Great trade.