Hey everyone!
Here is the second trade I’m taking for the challenge, enjoy!
Entry
Trade Description
Overall bearish short-mid term structure within a macro range. Price broke structure: it failed to print lower highs, instead, it formed an equal high as it visited the support area while stochastic formed a bullish divergence exiting the oversold area.
Price action showed a lack of continuation which signified demand around the support where the break of the structure was formed. A long trade was taken with the SL at 1-ATR under the last low and the TP1 set at the nearest relevant secondary level. TP2 will be set, as usual, open with a trailing SL and manually closed if the market shows significant reversal patterns.
Noticed a bearish trend-line after executing the trade, it has potential confluence around the TP1 minor resistance, will consider manually closing the second half of the trade once the price hits that area depending on how price action behaves.
Hey all!
While doing the weekly self-review, I found some big insights about this trade, here are the notes from my journal, enjoy!
Referenced idea
Trade notes
Noticed that the bearish trend line can also be interpreted as a bearish channel. This signals a very clear bearish structure, which hasn’t been broken. The current last low is slightly lower than the previous one, rendering the structure valid.
I must put more attention to details before taking a trade, it has lower quality once the additional patterns were noticed. The overall trade can still play out, but definitely will consider a complete close as it evolves.
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Trade Update
Unfortunately, today the trade has been stopped. In this particular case, I completely accept this trade as a FOMO entry, as I didn’t fully evaluate the entry opportunity before taking it, even when I’m trading for swing positions.
Here is the screenshot:
How far down did price go? Was the lower boundary of your channel respected? In hindsight, did anything else point towards a continuation of the trend?
