NZDCHF Setting Up For Another Sell-Off
On the daily timeframe NZDCHF has been decreasing. We can see a clear lower low and lower high. I'm interested in this setup because. I just lost a 4 hour trade which means price is retracing.
If price continues to retrace and can stay below 0.58632, I'll be looking for a sell.
What can invalidate this trade?
1. If price does not come back to my estimation zone I will not be triggered into the trade which means price is still moving down.
2. If I am triggered into the trade and price passes 0.58632, I'll be stopped out of the HTF trade. This means price can potentially go higher and I must readjust.
Am I ok with the invalidations?
Yes. they are what keep protect me from overtrading and tell me how I should adapt.
How am I managing the trade?
This setup is a 2.24 risk to reward setup. This means whatever my position size is I will gain double and more on the trade.
I don't risk more than 1% on an trade.
So if I were to risk 1% my reward will be 2.24%.
I risked 0.50% my reward will be 1.12%
Whatever I risk is my loss and I am ok with what that is.
My goal is to lose what I risk or lose no money at all by setting break even points if price moves in profit.
I do believe it's important to set all parameters before entering trades.
My belief: I deserve to sleep peaceful at night while my trades run.
Well, this is my analysis after losing my first trade. I'm excited to keep this journey going.
Safe trading. Be blessed.
Shaquan
If price continues to retrace and can stay below 0.58632, I'll be looking for a sell.
What can invalidate this trade?
1. If price does not come back to my estimation zone I will not be triggered into the trade which means price is still moving down.
2. If I am triggered into the trade and price passes 0.58632, I'll be stopped out of the HTF trade. This means price can potentially go higher and I must readjust.
Am I ok with the invalidations?
Yes. they are what keep protect me from overtrading and tell me how I should adapt.
How am I managing the trade?
This setup is a 2.24 risk to reward setup. This means whatever my position size is I will gain double and more on the trade.
I don't risk more than 1% on an trade.
So if I were to risk 1% my reward will be 2.24%.
I risked 0.50% my reward will be 1.12%
Whatever I risk is my loss and I am ok with what that is.
My goal is to lose what I risk or lose no money at all by setting break even points if price moves in profit.
I do believe it's important to set all parameters before entering trades.
My belief: I deserve to sleep peaceful at night while my trades run.
Well, this is my analysis after losing my first trade. I'm excited to keep this journey going.
Safe trading. Be blessed.
Shaquan
