Hi guys,
I just made a long trade which went bad at the second I entered it, it did not hit my SL yet so now it is still running I would like your opinion on the trade. EUR/GPB
IMGUR LINK: http://i.imgur.com/xfMwN5s.jpg
I decided when the price broke the inner trend line to wait until the initial resistance was broken. The plan was to get to the outer trend line and then close the trade just before the major resistance (the upper purple dotted line is my TP).
My indicators were the hammer at the bottom of the downtrend, the breaking of the inner trendline and the breaking of the minor resistance levels between them. However, when I opened the trade the market turned around again and is heading downwards. At the moment it is going up again but I am still not convinced this is a good trade.
Ignore the Fibonacci please, that was just a bit of testing.
Could you explain to me if 1) my trendlines are ok 2) the moment was ok to enter this long trade.
If you see anything else which is bad or good please tell me. I am aware my equity management on this trade is not ok (I can lose more than I can gain at the moment).
I’m reading 10 Essentials of Forex Trading at the moment and trying to implement all the things in the book. Having 3 indicators was for me the sign to go long here but now I am in doubt if this is a good trade.
Thanks in advance!
EDIT: So I just found out that I have drawn my outer trend line prety messed up. I drew that from a D1 chart, but it now covers more than 2 weeks so it is more of a long term trend line. The outer trend line is way steeper I guess.