CADJPY long trade.
Pre-Analysis:-
Correlation:- CADJPY (9 / 4). stronger for CAD
Market Territory:- price traded under buyer's territory
Session Breaks:- CAD broke NY session with strong sentiment (6 pairs). While JPY broke NY session with weak sentiment (7 pairs).
Fundamental:- news favor CAD as on Friday (previous trading day) data core retail sales (mom) (Jun) was (4.7% / 4.6% / -2.0%).
While on Monday data for JPY services PMI (Aug) show contraction 43.5 compared to previous release 47.4
Trading Plan:-
Trade classification:- A trade
(all factors back this CADJPY long trade, therefore an A class trade was classified)
Entry:-
Pullback details:- the sell marked with circle, all sell did not perform. until all sell taken out by aggressive buyers and after that price form sort of consolidation. the entry taken inside consolidation area.
Entry:- 86.290 (5:02 pm)
Lot Size:- 0.68
Stop:- 16 pips (86.130)
Risk:- 1% ($ 100)
Exit:- take profit at 2R (86.620), pre-set TP
Post Analysis:-
- entry was good, price immediately went up. happy with my timing.
- at 5:44pm as price went up, I reduce risk to half.
- after price try to come back down toward my entry, price jump back up. this time after price reach 1R profit, I move stop to BE (7.34pm)
- price continue to went up until very close to TP price but went down again. at 7:54pm I lock profit at 1R by moving the stop again.
- finally at 8:27pm price hit my stop and trade close at $ 98.85 profit close to 1R.
- price eventually went up until max of 2.95R for entire session trading yesterday.
- need improvement on exiting the trade.
- one more thing I need to consider put stop tighter as this was an A class trade. this will give better RR ratio. (but this also increasing chances of being hit)
