Pre Analysis:-
Correlation:- USDCAD (4 / 9), correlation favors CAD as stronger than USD
Market State:- I believed price traded under sellers territory as shown in H4 chart below.
Session:- USD broke Asia session on weakness sentiment. (6 pairs)
Fundamental:- none of news release was new, all news release from last week. Although CAD sentiment strong that was for last week (oil as well) and I consider it as outdated.
Chart:-
Trading Plan:-
Trade Classification:- B trade
Entry:- as pullback happen I try to enter a trade inside the range.
Exit:- try to trail for max profit
Stop:- set stop
Entry:- (sell) 1.24587 (0.68 lot) (time: 17:03)
Stop:- 1.24767
Exit:- (scratch the trade) 1.24708 (time: 17:29)
Loss:- $ 65.98
Post Analysis:-
My mistake:-
- regarding entry, this is another a toss coin trade. the entry was wrong, the range did not show slowing down sign. range that slow should show inability to go up again, then there will be an entry if you need to entry.
- another data need to look out is regarding session break. not only look at USD session break to determine power has activate but check also CAD, does CAD also has significant session break. this combination will strengthen the pre analysis.
- for next trade, during pre analysis please check for both currency their session breaks. in this trade USD show weakness by 6 pairs broke Asia session but CAD did not show strong breaks infect it show breaks to weakness in a few pairs.
- below sample of better trade with very good pre analysis condition.
- for USDJPY, USD broke Asia session with 6 pairs and JPY broke the same session with 3 pairs. this show safe trade for USDJPY short.
- this trade will give you decent profit.
- improve as well on my pairs selection. the analysis seem to be ok but be careful on trade selection.