The first time price broke below support which was required for sells, resistance was formed but we never got the final confirmation required to execute on sells. Price then broke back into the range before we took an entry.
As we had already formed resistance, I was happy to go down to the 5m timeframe to confirm sells. The next 5m candle broke back below support signalling a fakeout, this meant there was a high probability price would drop to the next support.
My confirmation to enter sells was when the next 5m candle broke below the previous candle. Stops were above the previous 5m candle and the targets were 124.200 and then if we broke below that support, we expected price to push down to 123.885. Both of our targets were smashed.
When we broke below the first support, we moved our stops into profit following market structure to make the trade risk and stress free.
As we had already formed resistance, I was happy to go down to the 5m timeframe to confirm sells. The next 5m candle broke back below support signalling a fakeout, this meant there was a high probability price would drop to the next support.
My confirmation to enter sells was when the next 5m candle broke below the previous candle. Stops were above the previous 5m candle and the targets were 124.200 and then if we broke below that support, we expected price to push down to 123.885. Both of our targets were smashed.
When we broke below the first support, we moved our stops into profit following market structure to make the trade risk and stress free.
Comment:
This trade is based from analysis from the day before this trade was taken
