Welcome to my trading journal, where I’m documenting my trades in detail, including my entry and stop levels, risk management strategies, and technical analysis. Join me as I learn from my trades and strive to improve my skills.
Here’s another situation where I’m updating this several days later because I neglected to take notes about it when it happened. My morning RSW once again suggested CHF/JPY as a strong candidate for a long trade, so that’s where my focus was.
Entry
Looking at the daily chart, price had been strong for several months, and some of the momentum had stalled on this day. Looking at the 2 hour and 4 hour charts, price formed a nice high-base over the last roughly 3 days.
If this could break those highs, it could definitely make a significant run up, given it’s history. I can’t remember for sure, but I’m fairly certain I used the Fibonacci retracement to determine a target; and the target provided nearly a 2.5 R:R.
Entry – 165.55
Stop – 165.0
Target – 166.795
R:R – 2.3:1
I set an entry order at the highs of the base, and my stop at the lows. It was a pretty sizable 55 pip risk level, but with the pattern, target and the amount of time I was willing to hold, I was more than willing to take the trade. My trade was triggered just a couple of minutes after setting the entry order.
Price hovered around the highs of the range after triggering my entry into the trade, but never really made a significant push up. If I remember correctly, this was still hovering around that area when I finished working for the day, so I moved my stop to the resistance area that price broke when it triggered me in to the trade; and changed it to a trailing stop.
Exit
From there, my stop was able to push up just barely above break even before price reversed enough to hit it and stop me out of the trade.
Looking today, I potentially could have made a little more profit in this trade had I been actively managing it the entire time, but not much. I suppose it depends on when and how I decided to get aggressive with my stop. Price did come back down fairly aggressively after the strong up-move that pushed above 1R, so I might not have been able to extract much more.
Regardless, I can’t be mad at a break even trade. If it’s not a loss, it’s a win in my book. I’m getting a bit more confident each day, and despite being “just” break even, this trades contributing to that.
Thanks for reading. Did you find this analysis useful for your trading journey? I’d love to hear your insights in the comments below. Let’s keep the conversation going!