EURJPY H1 – Trade Analysis
In this trade I want to point out a mistake which is better to avoid if you do not want losses.
What was right in this long trade:
- Strong signal (Minor Demand) before trend changed.
- Dynamic trend turned from red to green – this is the right sign for a long trade.
- Entry was made in a low volume down bar. This is basically o’k, only one thing – price moved quite far away after the trend changed.
What was wrong in this trade:
- There was only one missing thing – background was still weak. You do not have to go against the background, because even if other components are right for a long setup, it is most likely that this will not be a winning trade. If background is weak it means that imbalance between supply and demand is in favor of supply.
Leave a Reply