EURUSD ‘Supply CZ Nearby’ Trade Analysis
Setup: Supply CZ Nearby
Order: Short Stop Order (1.1402)
Trade result: Failed (didn’t close on wide up bar after alert)
Trading near a Congestion Zone is similar to a support/resistance zone. The logic is the same – there is a zone with an high potential to reverse the market, and so, if the market gives these strength signs, you should get ready to get in.
In this trade, there was a nearby long-term congestion zone (CZ), and weak volume + price action NEAR the CZ, which triggered the alert.
The short trade was executed at 1.1402 and closed at 1.1443. The mistake was that I didn’t close on wide up bar after alert, which is something to always look out for.
Disclaimer: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, these trades were taken by our proprietary robot that takes both positive and negative trades in a simulated setting for purely educational purposes.