This was a sample trade that can be taken on 11 August 2021
Pre Analysis:-
Correlation:- NZDJPY (12 / 2), clearly NZD stronger than JPY
Market State:- NZDJPY traded under buyer's territory as shown on the H1 chart below
Session Breaks:- NZD broke NY / Asia session with strong sentiment (5 pairs)
While JPY also broke NY / Asia session with weak sentiment (6 pairs)
Fundamental:- there was no news release for both NZD and JPY, all news sentiment for both currency considered outdated.
Trading Plan:-
Trade Classification:- B trade
(all 3 element backed for NZDJPY long trade: correlation, market state/territory & session breaks. only fundamental news not back-up this trade, thus a B class trade was classified.)
Entry:- pullback / digestion after session breaks
Pullback:- the first pullback (1) show slow & not aggressive pullback, no (2) pullback unable to make lower low & no 3 pullback also unable to make new low this all line up and show inability of price to go down. after that range appear & forming close to the NY opening time. trade can be enter on the opening hour of NY session as show on the chart above.
Stop:- stop placed under the pullback area that unable to break, this trade should not break that area to see price mark-up higher. stop was 10 pips lower than entry price.
Exit:- trail the profit for max
Post Analysis:-
- Trade can produce roughly 3.5R profit max.
- Preparation before NY opening hour is very important, it should be done at least 30 minutes before opening market.