This is sample trade that can be taken on 27 August 2021, AUDCHF long trade.
Pre-Analysis:-
Strength Number:- AUDCHF (+7 / -3) AUD stronger than CHF, but I think AUD is not the strongest is compare to CHF.
Fundamental:- AUD news event was negative, retail sales (mom) (Jul) (-2.7% / -2.3% / -1.8%). While for CHF there is no news event.
Trading Plan:-
Trade Classification:- C trade
(although AUD is stronger than CHF but it is not the strongest & fundamental has conflict for this long trade. therefore I class this trade as C)
- AUDCHF broke Asia session & I should wait for pullback, read the pullback carefully & time my entry at the very logical point.
- There was quite a long range (meaning that no activity).
- Then there is small range forming.
- That small range was broken to downside (this will activate sellers).
- But the price jump back up immediately (a probe), this can be an entry point.
- As this is C class trade, therefore plan for exit at 1R profit.
Post Analysis:-
- The 1R profit reach easily.
- Max profit around 1.65R.
- I purposely choose this trade as an example because, it happen in front of me while I am observing the AUD group of currencies.
- I need to always remember this, if you are going to buy you need sellers and vice versa.
- I not trade this set-up simply because previous day actual trade was bad I lost more than $100 and this put me into state of fear (fear of losing).
- Need more control on emotion/psychology.