Updating on 8/2
In addition to EUR/JPY, I thought maybe I’d capitalize on the strength of the Yen and take another JPY pair short — that pair was CAD/JPY.
Looking at the daily chart from that day, It’s another situation where the overall trend was up (and stronger than EUR/JPY), but there was some recent signs of weakness, so I pulled the trigger. I already know that I shouldn’t have and it’s something I need to keep in the front of my mind going forward, but I can’t change this trade, now, and I need to analyze it.
Price did push down for a couple of days, stalled at a bit of a support/prior resistance area, rallied for a couple days, but made a lower high and was pushing down on the day I took this trade. The overall trend, like I said, was up, but there was a bearish retest that somewhat formed on the daily chart.
Entry – 104.68
Target – 104.5
Stop – 104.75
Entry – 104.68
Looking down at the 1min chart, there was a small base that had formed, with a pretty clear support area and a resistance area that was prior support. I set an entry order with a tight stop, but after setting my entry order, price spiked a little above where my stop would be. I left it alone and trusted my analysis, and eventually I was triggered into the trade.
Exit – 104.75
There’s another feather in the cap of I shouldn’t have taken this trade, but I still did. Another rule I need to think about and commit to. After getting into the trade, price pushed a little in my favor, but nowhere near 1R — even with my tight stop — and then rallied/re-tested which stopped me out of the trade.
In this analysis, I saw 2 reasons I shouldn’t have taken this trade, so it was bad from the get-go. Need to not make those mistakes again.
