NZDCHF long trade
Pre-Analysis:-
Correlation:- NZDCHF (14/4),
Session Breaks:- NZD broke Asia session with strong sentiment (4 pairs). While CHF broke NY session with weak sentiment (5 pairs). Notice on different session breaks.
Fundamental:- NZD news on 24 Aug 2021, retail sales (qoq) (q2) is better 3.3% compare to previous quarter 2.8%.
No news for CHF.
Trading Plan:-
Trade Classification:- B trade
(correlation & fundamental news give confident for NZDCHF long trade. but session breaks a bit not align as NZD group broke Asia session while CHF broke NY session. therefore B class trade was classified.)
Entry:-
Pullback:-
- all sellers marked with (1) (2) (3) (4). sellers unable to make lower low
- small range develop just after seller (4) failed, first entry (A) initiate after that range.
- second entry at (B)
Risk:-
Trade (A) with 1% risk
Trade (B) with 0.5% risk
Post Analysis:-
- entry was not good
- should not entry for second time
- re-look entry at before seller (4), as shock buyer perform before seller (3), small range occur after that also there is probe went down the small range.
- if entry was made at that point, this trade will give profit provided stay hold onto it even the price try to come back down.
- trade (A) if I hold, it will hit stop anyway.
- trade (B) I have no explanation why I made it, this need to be avoided.
- this is example of a trade that has potential to profit but lack of skill will lead to poor entry and will also damage your account.
