More info will follow later.
Trade closed: stop reached:
Got stopped out on that one.
Comment:
Major downtrend of the year:
Comment:
The downtrend line that I've expected to be major:
Comment:
I've set the stop limit order for that trade according to the long entry in the chart.
Background:
I'm generally bearish and I wanted the price to convince me that we have a reversal. Otherwise I would have just trailed my setup down until there is a real reversal.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I wanted to trade a bullish breakout from the long term down trend (diagonal red line) and the S/R (horizonal red line). I expected that to be a trigger for a reversal.
Target:
My target is just below the last major drop (blue rectangle) in price and below a diagonal S/R (orange ascending line).
Stop loss triggered:
o below horizontal S/R (red horizontal line)
o below major downtrend
o below a micro swing low
Position size:
The full 20% of my portfolio which I planned for ADA.
Advantage:
I expected the breakout from the downtrend and S/R to be significant.
Disadvantage:
o Only 1R
o The stop loss is almost 6% from the entry. I couldn't get out earlier as there was still a chance for a bounce from the major downtrend.
Disclaimer:
I'm a bloody beginner learning trading since september and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Background:
I'm generally bearish and I wanted the price to convince me that we have a reversal. Otherwise I would have just trailed my setup down until there is a real reversal.
Hypothesis:
To have a highly probable successful trade (please tell me if there is a better wording for that) I wanted to trade a bullish breakout from the long term down trend (diagonal red line) and the S/R (horizonal red line). I expected that to be a trigger for a reversal.
Target:
My target is just below the last major drop (blue rectangle) in price and below a diagonal S/R (orange ascending line).
Stop loss triggered:
o below horizontal S/R (red horizontal line)
o below major downtrend
o below a micro swing low
Position size:
The full 20% of my portfolio which I planned for ADA.
Advantage:
I expected the breakout from the downtrend and S/R to be significant.
Disadvantage:
o Only 1R
o The stop loss is almost 6% from the entry. I couldn't get out earlier as there was still a chance for a bounce from the major downtrend.
Disclaimer:
I'm a bloody beginner learning trading since september and I'm only publishing that to make use of the teddy bear effect. I expect to be more aware and conscious about what I'm doing by making it public and to also motivate me more to review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like it.
Comment:
I guess a better stop loss would have been even below which would have resulted in an R of less than one and made the trade not worth it.
Comment:
I figured out what the reason was. I should have used the log scale. The downtrend is way better respected with it. See:
