This was a sample trade that can be taken on 30 July 2021
Pre Analysis:-
Correlation:- CADJPY (12 / 5) significant strength for CAD.
Market State:- price traded on uptrend as shown on H4 chart. on 30 July price started to show pullback phase and on slow down mode.
Session:- price broke Asia session during London session and show weakness for JPY. (5 pairs)
Fundamental:- although CAD show weak news sentiment but Oil show some strength news release. for JPY there was no important news release this week. This may favor CAD for stronger currency compared to JPY.
Chart:-
Trading Plan:-
Trade Classification:- A trade
Entry:- point of entry during NY opening by following pullback that slowdown and forming of V formation (as shown on M15 & M5 chart). After V formation there was session break to upward and I should wait for digestion before enter a trade.
Exit:- trail profit for max
Stop:- I can put stop tight under money spot area as no news release was scheduled at that time.
Post Analysis:-
- Max 3.6R trade was possible
- Try to find more trade like this
- This was cheese trade criteria.
- Trade can also be taken during Frankfurt opening as V formation already set up & range occur after that so the reward will be higher