In this analysis, a different technique is used in the short trade. The candlesticks chosen are the Heiken Ashi candlesticks. A pending sell stop order is placed a few pips below the bottom of the bearish doji on the 1H TF, as highlighted by the blue rectangle. On the 4H TF, price has reached the kijun sen and it is acting as a resistance. Based on the advanced technique of Ichimoku, three signals have been generated (two G and one O = three) on the daily TF. The weekly TF shows a C clamp. All signs suggest a bearish bias.
Cautious traders may opt for 4H TF as the secondary chart and seek for further confirmation from the Heiken Ashi candlesticks.
Cautious traders may opt for 4H TF as the secondary chart and seek for further confirmation from the Heiken Ashi candlesticks.
Trade active:
Let's see how the trade works out. A small lot is used. More lots will be added in increments once the trend has been confirmed.
Trade closed manually:
Profit was booked when HA candlestick hits the 1H Kijun. If yo had trailed the SL using HA, you would have at least hit breakeven. Remember, capital preservation is the key to success in forex trading.