EURJPY H1 – Trade Analysis

2015-10-28 19_26_44-EURJPY,H1

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:

  1. Strong signal (Minor Demand) before trend changed.
  2. Dynamic trend turned from red to green – this is the right sign for a long trade.
  3. 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:

  1. 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.


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