This was a sample trade that can be taken on 5 August 2021.
Pre Analysis:-
Correlation:- EURCAD (4 / 5) tight correlation
Market State:- price traded under seller's territory
Session Breaks:- CAD broke NY session with strong sentiment (5 pairs)
While for EUR there was 3 pairs broke NY session with weak sentiment.
Fundamental:- News release for EUR show weakness with (*) and CAD release was strong also with (*). In term for fundamental there was no significant or clear direction.
Trading Plan:-
Trade Classification:- C trade
Entry:-
How this trade can be enter, there was a pullback after broke of NY session. At the blue color box there was no activity, then after that price surge up aggressively.
- After surge up immediately price crash down and this creates memory on the top (that area/price may use as an area for entry)
- After drop aggressive price try to go up again and when it reach area of previous drop memory it creates range, then inside that range entry could be activate.
Stop:- as this was a C trade then stop should not be tight
Exit:- plan to exit at previous low as this is C trade but if price drop aggressive then trade can be hold a little bit longer. 2R trade also can be a good exit as this trade only C trade class.
Post Analysis:-
