Looking to go Short on CADJPY.
- Entry: 81.403
- SL: 81.938
- TP: 80.000
I entered the trade on the 4H time frame because I saw signs of a bearish continuation:
- Bearish TK Crossover (Purple over Yellow)
- Bearish Engulfing candle
- Bearish candle closing and continuing passed Kijun
- Chikou Span below price.
My SL is derived from the 1H timeframe. You can see where the Kumo continued to flatten out. This stays within my trading plan and is also a solid level of resistance. My plan is to use a trailing stop on the creation of new Fractals. If I were to use the 4H time frame, less fractals will be created. This would give me a wider range to let price play out, but could also also eat up possible price when a reversal is made.
Using the 1H timeframe fractals is also another option. It will allow for a tighter SL and security of any gains, but leaves me open to getting wicked out easier.
The overall TP came from the previous support created on the Daily timeframe. I use the Daily timeframe to determine if price is bullish or bearish based on which side of the kumo it's on. I find key levels (support and resistance) from Chikou. After looking at this, that's the direction I take my trades in on the lower time frame.
- Entry: 81.403
- SL: 81.938
- TP: 80.000
I entered the trade on the 4H time frame because I saw signs of a bearish continuation:
- Bearish TK Crossover (Purple over Yellow)
- Bearish Engulfing candle
- Bearish candle closing and continuing passed Kijun
- Chikou Span below price.
My SL is derived from the 1H timeframe. You can see where the Kumo continued to flatten out. This stays within my trading plan and is also a solid level of resistance. My plan is to use a trailing stop on the creation of new Fractals. If I were to use the 4H time frame, less fractals will be created. This would give me a wider range to let price play out, but could also also eat up possible price when a reversal is made.
Using the 1H timeframe fractals is also another option. It will allow for a tighter SL and security of any gains, but leaves me open to getting wicked out easier.
The overall TP came from the previous support created on the Daily timeframe. I use the Daily timeframe to determine if price is bullish or bearish based on which side of the kumo it's on. I find key levels (support and resistance) from Chikou. After looking at this, that's the direction I take my trades in on the lower time frame.
Trade closed: stop reached:
Price came back and hit my SL.
This signals for this trade were weak.
Even though it was a bearish TK Cross and Chikou was below previous price, current price was still above the Kumo.
In the future, I believe I'll look for more confluence.
This signals for this trade were weak.
Even though it was a bearish TK Cross and Chikou was below previous price, current price was still above the Kumo.
In the future, I believe I'll look for more confluence.