$100k Challenge - NZDCHF Short - E24 T1
Hey all!
After the initial group of trades out of the full trading plan, trade frequency has decreased significantly through the challenge, and we finally have a new one I consider worthy of a bullet hahaha.
As always, here are the notes from the trading journal, enjoy!
Overall the market has maintained a constant bearish structure, drifting in favor of the safe-haven Swiss Franc, it leads me to believe there might be some fundamentals favoring a risk-off environment, but honestly, I have focused mainly on the technicals as time for catching up with fundamentals has been limited.
After the market tested the last lower low, it strongly rejected the area, leaving us with strong selling pressure clues, both on the H4 and the Daily. On top of this, the technicals I follow do signal a potential continuation, so I decided to take this short trade.
The stop loss is located slightly above the last high, which is an unconventional approach as it's within the descending channel, however, my logic for this is that if the market pushes to the upper bound of the channel, I'd rather consider a second entry with a way better risk-reward, and have a tighter initial SL now in favor of a > 1:2 take profit 1. Kind of a risky move, but personally I think it's worth it.
Regarding trade management, a standard approach of TP1 is located at the nearest support, and TP2 is open. Risk-wise, we're sticking to the original 1% per trade risk management.
After the initial group of trades out of the full trading plan, trade frequency has decreased significantly through the challenge, and we finally have a new one I consider worthy of a bullet hahaha.
As always, here are the notes from the trading journal, enjoy!
Overall the market has maintained a constant bearish structure, drifting in favor of the safe-haven Swiss Franc, it leads me to believe there might be some fundamentals favoring a risk-off environment, but honestly, I have focused mainly on the technicals as time for catching up with fundamentals has been limited.
After the market tested the last lower low, it strongly rejected the area, leaving us with strong selling pressure clues, both on the H4 and the Daily. On top of this, the technicals I follow do signal a potential continuation, so I decided to take this short trade.
The stop loss is located slightly above the last high, which is an unconventional approach as it's within the descending channel, however, my logic for this is that if the market pushes to the upper bound of the channel, I'd rather consider a second entry with a way better risk-reward, and have a tighter initial SL now in favor of a > 1:2 take profit 1. Kind of a risky move, but personally I think it's worth it.
Regarding trade management, a standard approach of TP1 is located at the nearest support, and TP2 is open. Risk-wise, we're sticking to the original 1% per trade risk management.
